As Fuerteventura continues to attract investors, the Greek real estate market is revealing early signs of a downturn after five years of sustained growth. This shift is largely attributed to a notable 17.8% decline in foreign direct investment (FDI) during the first half of 2025, according to the Bank of Greece. Investment in Greek real estate fell from €1.1 billion (£959 million) in 2024 to €938 million (£818 million) in 2025, prompting market experts to closely monitor this developing trend.
The decline is particularly concerning given that foreign capital has been instrumental in the recovery of the market post-financial crisis. Despite this downturn, some industry insiders remain optimistic that the typically stronger second half of the year could alleviate the full-year impact.
Ioannis Revythis, honorary president of the Attica Real Estate Association, described the current market climate as “numb and cautious,” attributing the slowdown to recent policy changes and systemic issues, particularly affecting British investors.
One significant factor is the recent reform of the Golden Visa program, which provides residency to non-EU nationals, including UK citizens, through real estate investments. The minimum investment has increased dramatically in high-demand areas; as of September 2024, it now stands at €800,000 in cities like Thessaloniki, Mykonos, and Santorini—up from €250,000.
Compounding issues for investors, the government has implemented new regulations governing short-term rentals, which have grown in popularity. Effective October 1, 2024, these regulations require properties to meet specific safety and comfort standards, including mandatory smoke detectors, air conditioning, and civil liability insurance for hosts. Recently, Greece saw 14 million overnight stays in short-term rentals by tourists in 2024—a two million increase compared to the previous year—prompting the need for such regulations to mitigate the impacts of overtourism.
Additionally, Revythis points to institutional stability as a concern for large investors, citing uncertainties surrounding environmental regulations and a lack of comprehensive spatial planning in the market.
Despite the slowdown in investments, the core housing market remains under pressure. The Bank of Greece reports that apartment prices have risen by 7.3% as of Q2 2025, driven by construction costs and a demand-supply imbalance, with typical households still facing escalating housing challenges.
In this evolving landscape, both current and potential investors in real estate should remain well-informed and agile to adapt to the dynamic regulatory environment in Greece.
Image credit: www.express.co.uk
Source: www.express.co.uk.
Curated by Fuerteventura Times Real Estate Desk.
