Greek Real Estate Market Not Happy with Golden Visa Program Changes

The Greek real estate sector has expressed dissatisfaction with the recent changes made by the government to the country’s Golden Visa program.

Speaking at the 25th Prodexpo real estate conference in Athens, Dimitris Biniaris, president of the Federation of Real Estate Brokers of Greece, voiced strong opposition to the program’s new regulations.

“Due to the series of changes, there was a surge in permit applications, leading to market distortions and unintended consequences,” Biniaris stressed.

Greece’s Golden Visa program offers five-year residency permits to non-EU nationals who invest in property. Among the recent changes, the most significant is the increase in the investment threshold, effective from September, in high-demand areas such as Athens, Thessaloniki, Mykonos, Santorini, and other Greek islands with populations exceeding 3,100.

Biniaris underlined the program’s past success, pointing out that over the last decade, it has attracted substantial foreign capital. He noted that the Golden Visa revitalized a “dormant market,” facilitated the resolution of bad loans, contributed to government revenue, and supported jobs in the construction industry.

Housing crisis concerns

The Greek government introduced these changes in part to address the country’s housing crisis in urban centers, an issue Biniaris dismissed, claiming that the Golden Visa program has not exacerbated the problem.

“This program never caused housing shortages, as the properties sold were not owner-occupied but were instead rented out, often at 10 to 15 percent lower rates compared to similar properties in Athens and Thessaloniki,” he argued.

Biniaris criticized the government’s decision to raise the investment threshold to 800,000 euros in so-called “saturated” areas, which include popular tourist destinations and urban centers.

“Governments often make decisions without consulting experts,” he said, adding that while the program could benefit from some adjustments, it remains an excellent initiative.

Need for infrastructure hinders new investments

Thessaloniki, Greece. Photo source: Thessaloniki Travel

During the discussion, Kostas Georgakos, CEO and Co-Founder of Prelevits and Georgakos Real Estate, highlighted that the most sought-after destinations for new investments include the center of Thessaloniki, Kalamaria, Halkidiki, Pieria, and Kavala. Their proximity to the sea and land borders makes them attractive for tourists with convenient access by road.

“We have 30 to 40 million people who can drive to Northern Greece,” he noted, adding that many businessmen from neighboring countries have established companies and are actively involved in real estate development.

However, Georgakos emphasized that the lack of adequate public infrastructure presents a significant challenge for investors looking to build in Greece, ultimately diminishing the appeal of many destinations.

“The unfortunate reality is that someone buys a holiday home, builds a villa with a swimming pool, and then can’t use it,” he remarked, citing an example where a municipality in Northern Greece imposed a ban on filling swimming pools this year.

“We need to upgrade our 50-year-old infrastructure,” Georgakos stated firmly. “You can’t attract tourists or investors to Halkidiki and then tell them they can only shower between 5 and 7 in the afternoon.”

Halkidiki, Greece.

George Gavriilidis, CEO and Founding Partner of Elxis Greek Real Estate Services BV, added that Greece has emerged as a promising investment destination following the pandemic, especially for those who hadn’t previously recognized its advantages.

“Greece gained attention and has become a sought-after destination for holiday homes,” he explained. “New buyers plan to hold onto their properties for 5 to 10 years before selling. We already have a waiting list for these projects,” he added.

The Prodexpo conference serves as the annual flagship event for the real estate industry, offering top-notch content, speaker sessions, mentoring opportunities, and insightful discussions on emerging trends in real estate and development projects.