Foreign investment in Greek real estate has dropped sharply this year. In the first half, total foreign direct investment (FDI) reached €2.8 billion, with €938.3 million (33.4%) going into real estate. This share is down 42.2% from the same period last year, when real estate accounted for 57.8% of FDI (€1.14 billion out of €1.974 billion).

Real estate investment fell 17.6% year-on-year in the first half: down 31.6% in Q1 to €356.8 million and 6.5% in Q2 to €581.5 million (from €622 million). With total FDI soaring to €8.6 billion in Q3, real estate’s share is expected to shrink further.

Market sources say foreign real estate investment is shifting from speculative buying to longer-term strategies, with rising interest in holiday homes and luxury properties. Meanwhile, investment linked to residence permits or short-term rentals is normalising. From January to October, applications for permanent investor permits fell by 12%.

So is the negative  impact Airbnb was having on rentals now subsiding ( as we recently reported on?)