Tensions between Greece and Turkey over territorial disputes separating neighboring countries have weighed on the Greek luxury home market, despite strong growth in the broader real estate sector, says Berkshire Hathaway HomeServices.
In a report titled “Global Luxury Landscape,” Kyriakos Xidis, managing partner of Berkshire Hathaway Home Services properties in Athens, said foreign buyers feared Turkey might launch military action against Greece because risk assessment relevant disadvantages Greek properties. .
“The war in Ukraine and geopolitical uncertainty in southeastern Europe, which intensified due to Turkey’s provocation and rhetoric against Greece, clearly had a negative impact on real estate demand in the spring and in summer 2022,” he said, adding, however, that this hasn’t affected all buyers. looking at Greece.
Foreign investors have been largely behind strong demand for Greek property recently, as property prices in the country remain well below levels seen in other markets, such as Spain. , Italy and the south of France.
Data from the Bank of Greece, the country’s central bank, shows that in the second quarter of the year, capital inflows from abroad for the acquisition of real estate reached 414.4 million euros, an increase of 67% compared to the same period a year earlier, marking the best performance since the last quarter of 2019.
The Greek market is dominated by holiday home purchases, particularly new luxury residences in the Cyclades, Crete and Corfu and luxury Athens apartments in the northern and southern suburbs known as the Athens Riviera , according to the report.
“Additionally, demand is strong in the classic holiday destinations of Mykonos, Santorini, Porto Heli, Rhodes, Corfu and Crete“, he added.