Lee Tokouzis

Luxury real estate is often misunderstood — seen as a symbol of wealth rather than a driver of wealth. But beneath the surface of marble floors and breathtaking sea views lies a sector that generates jobs, attracts capital, and powers national economies. Here’s why policymakers, investors, and business leaders should view luxury real estate as a pillar of modern economic strategy.

Luxury market: Small share, outsized value
Luxury real estate occupies a unique position in the global housing market. While high-end properties typically represent just 10–15% of transaction volume, they consistently account for nearly half of total market value. This reflects elevated price points and the depth of investment, global demand, and long-term economic impact tied to this segment.

When an investor acquires an estate in London or a waterfront villa in Paros, the transaction is not simply a private exchange of property — it is a high-value economic event. These sales contribute more than their individual figures suggest; they support employment, generate taxes, and inject capital into entire ecosystems.

Today, luxury real estate has matured into a global asset class — valued for its scarcity, stability, and strategic role in wealth preservation. From New York to Paris to Dubai, affluent buyers view prime property as a portfolio mainstay, much like equities or fine art. With global luxury sales increasing by 20% in 2024, this segment is not only expanding but outperforming.

Multiplier effects: Wealth creation beyond four walls
A defining feature of luxury real estate is its multiplier effect. Each transaction sets off a cascade of economic activity across industries — from architecture and design to law, logistics, construction, and finance.


According to the U.S. Bureau of Economic Analysis and NAHB, every euro invested in luxury construction can generate up to three euros in GDP impact. This is how value is amplified:

Construction & Materials: Dozens of jobs are created per project — from engineers and masons to artisans and local suppliers.
Design & Renovation:Tailor-made interiors and landscaping sustain a network of creative professionals.
Services & Tourism: Luxury homes often host high-end rentals, events, or seasonal visitors, supporting the local tourism economy.
Finance & Legal: These transactions frequently involve complex legal, tax, and cross-border financing — benefiting the broader professional services sector.

In Greece, institutes such as IOBE have documented these effects, particularly in destinations like Mykonos and Athens Riviera, where luxury property supports yachting, aviation, gastronomy, and hospitality sectors. A single transaction in this segment echoes across the economy.

Resilience in downturns, leadership in recoveries
Luxury real estate is distinguished not just by its value — but by its resilience. Historically, this market segment has shown a remarkable ability to withstand downturns and lead recoveries. Unlike average homebuyers, affluent individuals often purchase in cash, making them less exposed to interest rate hikes or credit restrictions.


During the 2008 financial crisis and the pandemic-induced shock of 2020, luxury markets in global capitals recovered faster than broader housing markets. In the U.S., luxury home sales were up over 40% year-on-year by early 2021. In 2024, while overall market activity declined slightly, luxury real estate posted growth between 4% and 6.5% in major urban centres.

These properties are not just homes — they are financial safe havens. Their scarcity, location, and prestige make them enduring stores of value, and in times of uncertainty, they attract capital-seeking stability.

A channel for foreign direct investment (FDI)
Luxury real estate is a proven channel for foreign direct investment (FDI) — connecting domestic development with global wealth. In Greece, for instance, approximately 84% of luxury home purchases in 2024 were made by international buyers.

This capital brings tangible and measurable benefits:

It contributes directly to the balance of payments.
It expands the tax base through real estate levies and transactional fees.
It fuels complementary sectors such as private aviation, fine dining, yachting, and concierge services.

In the right policy environment, the luxury property market becomes a strategic tool for attracting capital, creating employment, and strengthening a country’s international economic footprint.

Soft power and national identity
Beyond balance sheets and macro indicators, luxury real estate plays a quieter yet equally decisive role in nation branding. When respected public figures invest in a country, from CEOs and artists to royals and philanthropists, they do more than buy homes. They endorse the destination.


Greece offers a compelling case study. From Tom Hanksin Antiparos to a global roster of high-net-worth individuals investing in the Athenian Riviera, these owners shape perceptions. Their presence enhances Greece’s image as a stable, desirable, and culturally rich place to live, invest, and return to.

This phenomenon — often called the celebrity effect — can have exponential influence. It inspires media visibility, attracts aspirational buyers, and encourages the growth of luxury services. It is, effectively, soft power in action — and it begins with real estate.

A sector that matters
Luxury real estate is far more than a symbol of lifestyle or status. It is a strategic economic engine. It generates employment, attracts capital, supports exports, and reinforces national prestige. It has proven to be resilient in crises and catalytic in recoveries.

In Greece — a country that combines natural beauty, cultural depth, and geographic significance — luxury property has become a central narrative in its economic evolution. It is not just about bricks and mortar. It is about trust, vision, and long-term value.

As leaders, investors, and policymakers evaluate where growth will come from in the decade ahead, luxury real estate must be seen not as a niche — but as a pillar.