Trends in visa applications show a decrease
A decline in visa applications has started to be observed in the “golden visa” program, after almost two years of frenzy caused to buyers by successive changes introduced in the minimum investment threshold in order to secure the coveted permit.
According to data from the Ministry of Migration and Asylum, during the first half of this year, 4,100 applications for residence permits were submitted, a number that was slightly lower by 3.3% compared to the same period last year, when 4,150 permits had been submitted.
The rally in property prices continues
In early 2023, the government decided to double the minimum investment amount from 250,000 to 500,000 euros if the property acquired by the investor was located in the center of Athens, in the northern and southern suburbs, in the Municipality of Thessaloniki, in Mykonos, and in Santorini.
At the same time, this is the first sign that the frenzy of property purchases by investors looking to beat the deadlines for implementing the changes in the limits, both last year and this year, is coming to an end.
Changes in Real Estate Market Regulations in Greece
Starting from August 1st, 2023, new regulations have been put in place in Greece regarding the purchase of real estate properties. These changes aim to regulate the market and prevent unjustified price increases.
However, the loophole that allowed the purchase of properties over 250,000 euros in certain areas, such as Piraeus, led to sharp and unjustified price hikes. The limited options available for foreign investors resulted in a concentration of demand in specific areas, driving up prices.
Increasing investment limits in Greece
Recently, there has been a decision to increase the investment limit to 800,000 euros in Greece. This new limit applies to the entire region of Attica, Thessaloniki, and all the islands with a permanent population.
Despite this increase, prices have continued to rise, albeit at a slower pace compared to before. The competitive advantage of 250,000 euros instead of 500,000 euros has not led to price stabilization in other areas where the higher limit was in place.
The Rise of Non-EU Investors in Greece
With a total population of 3.100 residents, Greece has seen a significant increase in the number of investors from non-EU countries applying for residency permits. The total number is expected to reach 26,370.
Furthermore, a deadline extension until September 1st has been granted for the implementation of changes, resulting in a high volume of property transactions by foreign citizens from non-EU countries rushing to secure permits with either 250,000 euros (the majority) or even 500,000 euros.
Over the past 18 months, more than 10,000 applications have been submitted for residency permits in Greece by non-EU investors, indicating a growing trend in foreign investment in the country.
Delays in Residence Permit Applications
Obtaining a residence permit has become a lengthy process, causing significant delays in the issuance of permits. Based on data from this June, there are 9,407 pending applications, with 5,330 of them submitted in 2023, highlighting the delays that are now being observed.
Increased Number of Investors
Taking these delays into account, the total number of investors from non-EU countries who have received or are set to receive a residence permit in the near future will rise to 26,370 since the start of the program, by mid-2023.
A Decade of the “Golden Visa” Program: A Look Back
Since 2014, the “Golden Visa” program has been in operation, attracting a significant amount of capital into the country. With a minimum capital influx of 6.6 billion euros, market players estimate that the final amount is even higher as not everyone has purchased a property worth 250,000 euros but has also invested in other properties or higher-value residences.
Changing Strategies for the Future
Looking ahead, industry sources believe that the program will continue to operate but with completely different strategies in place.
The Real Estate Market in Greece
When it comes to investing in real estate in Greece, the focus is shifting towards the quality of life rather than just obtaining a residence permit. While the prospect of future resale for profit or rental income may still be a factor for some investors, it is no longer the primary motivation.
Instead, investing in properties in Greece is primarily guided by the appeal of the Greek real estate market and secondarily by the opportunity to obtain a residence permit alongside the investment. The demand for Greek properties is on the rise, making it an attractive option for investors looking for both a profitable investment and a chance to relocate to a beautiful Mediterranean country.
Changes in Real Estate Investment Trends
Recent trends in real estate investment show a shift in the countries of origin for investors. Industry experts believe that the share of Chinese investors, who currently own almost 6 out of 10 properties purchased for residency purposes, will start to decline.
