Study: Greece’s Golden Visa Scheme May See Drop in Demand

Athens, Greece.

The recently announced increase in investment limits for the acquisition of a Greek golden visa may lead to a drop in demand, found a report released this week by property brokers Tranio.

The Greek government announced changes to the country’s golden visa program last month increasing among others the threshold to 800,000 euros for saturated areas which include popular tourist destinations and urban centers.

According to Tranio, despite an initial surge in applications for Greece’s golden visa scheme following the announcement, a “discernible, long-term decline is now underway.”

At the same time, analysts note that investors are beginning to show interest in alternative residence-for-investment schemes across Europe, such as those of Hungary, Montenegro, Cyprus, and Malta.

“Foreign investors now perceive Greece’s Golden Visa program as nearing its conclusion. With the investment threshold set to rise to 800,000 euros in key locations favored by international property buyers, this is viewed as a prohibitive measure. Notably, Tranio observed a 6.9 percent surge in purchase inquiries during Q1 2024, as clients rushed to secure deals under existing conditions,” said Mikhail Bulanov, managing partner & co-founder of Tranio.

Bulanov goes on to add that though there are valid grounds for Greece’s decision to raise the investment threshold, the program may face challenges under the new regulations amid heightened competition for foreign investment within EU property markets.

Additionally, he said, “higher mortgage rates and a waning domestic demand further compound this scenario… potential limitations on investment from Russian citizens and reduced activity from Chinese investors due to China’s economic slowdown could further impact demand.”

According to Tranio data, in 2022, 15 percent of golden visa applications in Greece were rejected, up from 2.3 percent in 2019. Coupled with potential delays in approval, some applicants now face waiting periods exceeding 12 months.