Greece’s Golden Visa Boom Sparks Real Estate Frenzy Amid Housing Crisis

08:56 19/12/2024 - Πηγή: iEfimerida

Athens is at the heart of a real estate surge fueled by Greece’s thriving golden visa program, which grants residency to foreign investors purchasing property.

Central Athens and the southern suburbs, including Kallithea, Nea

Smyrni, Paleo Faliro, and Piraeus, have become key targets for overseas buyers seeking a gateway to Europe.

The scheme, celebrated as one of the continent’s most attractive, is set to hit a record €3 billion in investment activity in 2024, marking its dominance as a cornerstone of Greece’s economic strategy.

Official data from the Migration and Asylum Policy Ministry reveals that 7,052 applications for golden visas were submitted in the first ten months of 2024, reflecting a 2.3% rise from the previous year. October alone accounted for 900 applications.

Chinese investors lead the charge, with 6,521 applications submitted, followed by buyers from Turkey (1,115) and Lebanon (717). Interest from the United Kingdom (511 applications) and the United States (369 applications) is also growing, underscoring the program’s global appeal.

Since its inception, Greece’s golden visa scheme has issued 16,860 residence permits, making it a cornerstone of the nation’s investment strategy.

The program’s momentum has accelerated in recent years, generating €2.54 billion in 2023, up from €1.3 billion in 2022.

However, this investment influx has a darker side. T

he program has contributed to a sharp rise in property prices, making housing increasingly inaccessible for locals. According to the OECD, Greek property prices have soared by 69% from 2017 to the second quarter of 2024.

Many foreign buyers are acquiring properties with the intention of renting them out on platforms like Airbnb, intensifying what critics term the “touristification” of urban centers and popular islands.

The trend has drawn criticism for pushing locals out of their neighborhoods and inflating housing costs. As policymakers weigh the benefits of foreign investment against its social impact, Greece grapples with balancing economic growth with the urgent need for housing reforms to protect its communities.

The golden visa program, while a financial boon, raises pressing questions about equity and sustainability in a transforming real estate market.

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