The Greek real estate market is showing early signs of dropping off after five years of uninterrupted expansion, a shift clearly evidenced by a sharp decline in foreign direct investment. Foreign direct investment in Greek real estate saw a “spectacular” decline of 17.8% in the first half of 2025 compared to the same period in the previous year – dropping from €1.1 billion (£959 million) to €938 million (£818 million), according to data from the Bank of Greece.
Market executives view this steep drop as a significant trend that requires immediate monitoring. The importance of this figure is underscored by the fact that foreign capital was a key catalyst for the market’s post-crisis recovery. Market insiders hold out hope that the historically stronger second half of the year may mitigate the current full-year decline. Ioannis Revythis, honorary president of the Attica Real Estate Association, described the current environment as “numb and cautious, without a clear horizon” and attributed the slowdown to a number of specific policy decisions and systemic issues, several of which involve Brits.
Speaking to Greek financial daily Naftemboriki, Mr Revythis blamed the slowdown on Golden Visa reform and short-term rentals. The Greek Golden Visa is a residency-by-investment program for non-EU nationals, including those in the UK, offering a path to premanent residency and a future EU citizenship through various investment options, most commonly real estate.
The minimum investment amount varies by location and type of property, ranging from €250,000 (£218,000) to €800,000 (£698,000), with higher amounts required in high-demand areas like Athens and popular islands. The permit is renewable every five years and grants visa-free travel within the Schengen Zone, but does not require physical residency in Greece. However, Mr Revythis said the recent increased investment threshold for the scheme has affected the country’s real estate market.
In September 2024, significant changes raised the minimum real estate investment to €800,000 in regions like Thessaloniki, Mykonos and Santorini, up from €250,000.
He also blamed the escalating restrictions and regulations on Airbnb-style short-term leases. The country has just introduced, as of October 1, new rules to regulate this growing market. The new rules add clear requirements for short-term rentals. Properties must have proper natural light, ventilation, and air conditioning to ensure guest comfort. Hosts must install smoke detectors, fire extinguishers, and escape signs and provide certification from a licensed electrician. Civil liability insurance is required to cover accidents or damages, along with a pest control certificate, a first aid kit and an emergency contact guide.
Properties must also be registered on the Short-Term Residence Register with the Independent Authority for Public Revenue (IAPR), and listings must display a unique registration number (AMA).
According to data from AirDNA, there were 14 million overnight stays by foreign tourists, including Brits, using short-term rentals like Airbnb for their holiday accommodation in 2024. This is an increase of two million from 2023, prior to Greece implementing policies to address issues caused by overtourism, such as skyrocketing rents and deteriorating public services.
Mr Revythis also attributed the real estate crisis to institutional instability, arguing that delays and pending issues, such as the debate over the abolition of environmental incentives in the New Building Regulations (NBR) and the lack of comprehensive spatial planning, create insecurity for large investors.
While investment slows, the core housing market continues to face a significant challenge. According to Bank of Greece data, the annual rate of apartment price increase for the entire country hit 7.3% in Q2 2025. This increase is fueled by construction cost inflation and a persistent fundamental imbalance, where demand from typical households continues to outstrip supply.