The real estate market is under pressure from the reduction in foreign direct investment, the slowdown in construction activity, the increase in construction costs and the limitation of investments in real estate, according to Bank of Greece data.
The situation prevailing in the real estate market in the first months of 2025 excludes the Golden Visa program, which recorded an increase of almost 32% on an annual basis, while in the same period the increase in residential and commercial properties’ prices continues.
Negative developments
The central bank outlines four negative developments in construction, specifically:
- Foreign investments: In the first quarter of 2025, net foreign direct investments in Greece’s real estate market, according to the Bank of Greece, recorded a negative annual growth rate of -31.4% to 356.8 million euros from 520 million euros in the same period of 2024.
- Construction activity: Residential construction activity nationwide also recorded negative annual growth rates during the same period.
- Investments in housing: This is another indicator that declined. On an annual basis, they fell by 0.3% in the first quarter of 2025 and continue to remain at a low level as a percentage of GDP (2.1%).
- Construction costs: At the same time, the total cost of constructing new residential buildings continued to rise in the first quarter of 2025, increasing by 3.5% year-on-year, with only a slight slowdown compared to the same period in 2024 (4.0%).
