Golden Visa Boom Reshapes Greek Housing Market, Fuels Price Surge

Since 2019, Greece has emerged as one of Europe’s top issuers of Golden Visas, according to a new report by the Athens University of Economics and Business (AUEB). The report, which explores the broader economic impact of short-term rentals, dedicates a special chapter to the Golden Visa program, highlighting its growing influence on both housing development and property prices in Greece.

Under the title “The Golden Visa Effect,” the study points to a surge in demand from foreign investors seeking residency through property purchases, particularly in high-value areas such as Athens, Thessaloniki, and popular tourist destinations like the Greek islands.

The AUEB researchers note that this increased demand from overseas buyers has driven up real estate prices in urban centers, with Athens, Thessaloniki, and Mykonos seeing some of the sharpest rises. In particular, neighborhoods near central Athens have experienced significant price hikes.

Developers, responding to market signals, are increasingly focusing on luxury housing projects tailored to foreign investors eligible for the Golden Visa scheme. However, this shift has led to a scarcity of affordable rental options for local residents, further intensifying demand for the limited number of low- to mid-range units still available.

The report also underscores another trend: many Golden Visa recipients aim to maximize returns on their investments by turning their properties into short-term rentals or leasing them out, further tightening housing availability for long-term tenants.

The Economic Impact

The Golden Visa program has also delivered substantial financial returns for the Greek economy.

According to the report:

• Since its launch, the scheme has attracted approximately 5.54 billion euros in foreign real estate investment.
• In 2023 alone, Golden Visa-related investments reached 1.32 billion euros, slightly up from 1.3 billion euros in 2022.
• Between 2023 and 2024, an estimated 10.77% of all property transactions in Greece were linked to Golden Visa purchases.

Source: tovima.com