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The real estate market and capital inflows from abroad for the acquisition of mainly houses have this year provided a lifeline to the foreign direct investments made in Greece.
Greece’s Golden Visa program has been in a transitional period since September 1, when the new changes voted a few months ago came into force.
The number of empty lots – properties without buildings – not declared to the national property registry is about 3.3 million, or 22% of the total. Similarly, undeclared built properties, including flats in apartment buildings, exceed 147,000.
A comparison of the asking prices in different parts of the country clearly demonstrates that hikes have mainly affected the two large urban centers and popular tourist destinations, and much less other cities, especially in northern Greece, where it is still very easy to acquire a residence at a cost below 1,000 euros per square meter.
Real estate investment continues to account for the lion’s share as a percentage of total foreign direct investment flowing into Greece.
After inviting foreign investors to qualify for Golden Visas by buying properties, Greece is looking at limiting how many nights apartments and homes can be used for short-term rentals, which spiked prices and is drying up the market. While the New Democracy government has since stopped the practice, Golden Visa holders had scooped up multiple properties when the threshold for qualifying was only 250,000 euros ($270,272) and saw many put those out for nightly rentals.
Interest from abroad in residential property continues to grow while domestic demand flags. Demand by Greeks for the purchase of property is in decline, linked to the estimates for a slight slowdown in the rate of price growth by 2025, per the latest survey by the Spitogatos.gr network, while interest from abroad keeps growing.
Greek tourism enjoyed a huge leap in the first quarter of the year, compared to the first three months of record year 2023. It showed growth of almost 25% in foreign arrivals per the data published on Tuesday by the Bank of Greece, with the short-term rentals accounting for the lion’s share of that increase.
Despite increases to Greece’s golden visa limits, there are currently 9,478 applications up for review, 6,228 of which submitted in 2023, according to the latest data released by the Migration & Asylum Ministry.
More specifically, a total of 1,299 new applications for the country’s popular investor visa were submitted in the first two months of the year compared to 1,248 last January and February and 664 visas granted.
Even before the grace period till end-August was granted, interest continued unabated.
Nearly half (44%) of more than 200 Greek property market executives who participated in Cerved Property Services’ annual market survey expect further growth in property prices, which is set to happen for both new-build and old homes.
The Finance Ministry presented on Thursday changes to the Golden Visa program increasing the minimum amount a third national needs to invest and secure the residence permit, in an effort to tackle the country’s housing crisis.
Bank of Greece data show 1.1 billion euros flowed into the country from abroad in January-June, up 39.5% from last year, when foreign investments amounted to €788 million. Growth accelerated in Q2, when €605.8 million was invested, for a 46.2% yearly increase. Throughout 2022 €2 billion had flowed in, up 68% from 2021
The Greek holiday home market has retained its upward momentum so far in 2023, unfazed by uncertainties in the global economy’s prospects, according to the latest quarterly analysis from Elxis, an expert realtor in the holiday homes market.
More than €1.5 bln has been invested in Greek realty for residence permits in 12 months
Greece is seeking to become a pole of attraction for digital nomads – i.e. citizens of third countries who work remotely.
Foreign investment in the Greek real estate market, especially housing, recorded an all-time high in 2022.
Property prices in central Athens have soared on high demand from third-country buyers
Euro Parliament passes regulation that bans sale or renting of homes without energy upgrade
Notaries will be able to retrieve various certificates from several state databases online
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