Double-Edged Sword: The Rise of Foreign Investments in Greece

While the increase in foreign direct investments in Greece is certainly welcome, it raises concerns about the high proportion allocated to real estate. According to data from the Bank of Greece for January 2025, foreign investments rose to €448.9 million compared to €355.1 million last year and €263.9 million previously. However, when nearly half of these investments are directed toward real estate, progress toward building a more competitive and outward-looking economy remains limited. This trend is reflected in other indicators, such as the widening trade deficit due to higher imports surpassing exports. Historically, before the debt crisis, investment percentages were even higher but similarly skewed toward real estate, which contributed to the so-called ‘twin deficits.’ Today, global investment trends favor innovation and advanced technology. As long as Greece focuses on non-productive investments like real estate rather than embracing cutting-edge sectors, it risks falling behind in competitiveness.