Athens, April 6 – Greece is trying to tame the rapidly rising real estate prices and the unavailability of housing for locals. This week, the government announced a significant increase in the minimum investment for the “golden visa” program, which attracted foreign investors with residence permits in exchange for buying real estate.
Investing in Greece as a gateway to the European Union
Launched in 2014, the “golden visa” program allowed investors to obtain a five-year renewable residence permit for an investment of at least €250,000 in real estate. This amount was an attractive entry ticket to the European Union for many, especially Chinese investors. In 2023 alone, investments within the program reached a record high of one billion euros.
Shifting the course towards wealthier investors
The government hopes that increasing the minimum investment to €800,000 in lucrative areas such as Athens, Thessaloniki, Mykonos, and Santorini will help cool the overheated real estate market and free up more apartments for Greeks. In less desirable locations, the investment threshold will drop to €400,000.
Experts raise questions
It remains unclear what the impact of this measure will be. Some analysts fear that it will deter investors and reduce the inflow of foreign capital into the country. Others believe that it will reduce demand for real estate and force prices down, which would help local homebuyers.
It remains to be seen whether this step will help Greece stabilize the real estate market and ensure affordable housing for its residents.
Key facts:
- Over 5,700 people obtained “golden visas” in 2023!
- Chinese are the leaders in this business – 405 Chinese bought visas in 2021.
- Mykonos and Santorini are among the most expensive locations, where investing in real estate will significantly impact your finances.
