With Greece getting ready to raise the minimum investment for its Golden Visa program, international buyers are scrambling to snap up properties before the deadline.
This last-minute rush has set off a property-buying frenzy, particularly in key regions across the country.
Rising demand drives up prices
According to Ekathimerini, property prices in Greece are skyrocketing, especially in areas popular with foreign investors.
The upcoming change—from €500,000 to €800,000 for properties in prime locations like Athens, Thessaloniki, and some islands—has triggered a buying spree as investors try to lock in their purchases before the hike.
Piraeus, a port city near Athens, has experienced a 28.9% increase in average property values in the second quarter of 2024 compared to last year, reaching €2,471 per square meter.
Although this is still lower than the €3,750 per square meter average in Athens’ coastal suburbs, it’s a clear sign of how the Golden Visa program is driving demand.
Investors, particularly from China, Turkey, and Arab countries, are particularly keen on properties near major transportation hubs like Piraeus, which is home to Greece’s largest port.
A boon for Greece’s economy
The Golden Visa program has given Greece’s economy a significant boost. In the first five months of last year alone, it brought in nearly €1 billion.
This surge in investment has not slowed, with a record number of visa applications in the early months of 2024.
However, real estate professionals highlight that many of these properties are not even being lived in. They are often bought and then sold a few years later at a profit, especially by those who got in during the financial crisis when prices were rock bottom.
However, these investments are not just about getting a visa—they also offer an annual return of around 4%.
That said, the influx of foreign buyers is also driving up rents, particularly in places like Piraeus, where rents have jumped more than 14% compared to last year
(Image courtesy of Gotta Be Worth It via Pexels)
Valuable real estate or a deterrent to buyers?
For those thinking about moving to Greece, the changes to the Golden Visa program represent both an opportunity and a challenge.
Those who can afford to meet the new requirements could end up with a prime piece of real estate in one of Europe’s most sought-after spots.
However, for many, the increased cost could be a dealbreaker, especially in less expensive parts of the country.
The upcoming launch of the European Travel Information and Authorization System (ETIAS) adds another layer of complexity.
For travelers who normally do not need a visa to visit Europe, ETIAS adds a new layer of bureaucracy. This could make the Golden Visa program even more attractive since it offers a straightforward path to residency and hassle-free travel within the Schengen Area.
However, with the higher financial threshold, it is likely only the wealthiest individuals will be able to take advantage of this option.
Tighter immigration policies
The Golden Visa program in Greece has always been a part of the broader EU immigration landscape, and the latest changes reflect a tightening of policies aimed at balancing economic benefits with social stability.
The increase in the minimum investment threshold is likely to lead to a decrease in the number of applicants, particularly from countries with weaker currencies.
This could result in a more selective immigration process, where only the most financially capable individuals can secure residency.
Moreover, the rising cost of obtaining a Golden Visa may push potential migrants to explore other EU countries with more affordable investment programs.
This shift could lead to a redistribution of foreign investments across the region, impacting housing markets and immigration trends in other parts of Europe.
(Image courtesy of Cátia Matos via Pexels)
A new chapter for Greece’s real estate market
As Greece enters this new phase of its Golden Visa program, the real estate market is expected to continue evolving.
The increased investment threshold may stabilize property prices in the long run, curbing the speculative buying that has characterized the market in recent years.
However, the immediate impact has been a surge in prices and sales, as investors hurry to meet the current requirements.
This pivotal moment in Greece’s property market could set a precedent for other EU countries considering similar adjustments to their investment-based residency programs.
For now, Greece remains a top destination for foreign investors, but the coming changes will undoubtedly shape the market and the country’s role in the global real estate landscape.
As Greece’s real estate market navigates these changes, prospective buyers, residents, and policymakers alike must consider the broader implications for both the economy and the community.
The evolving landscape presents opportunities and challenges that will influence Greece’s position as a hub for international investment in the years to come.