The Greek Real Estate Market Landscape Transformed by New Golden Visa Regime from September the first 2024

Significant changes are sweeping across Greece’s real estate market as the new Golden Visa regime takes effect from 1st September 2024. This long-anticipated shift brings with it a more demanding set of requirements for foreign investors seeking residency permits through real estate investment, signaling the government’s intent to reshape its housing policy while still maintaining Greece’s status as a highly desirable destination for foreign investment.

A Transition Period Ends, New Rules Begin

Since March 2024, the Greek Ministry of Finance (MOF) allowed a transition period for investors to prepare for the new framework. As of September the 1st 2024, this window has officially closed, and the new rules are now in force. One of the key changes is the substantial increase in the minimum investment required to obtain a five-year residency permit through real estate purchases. Previously, foreign nationals from outside the European Union could qualify for a Golden Visa by investing €500,000, but this figure has now risen to €800,000 in several major regions.

The regions affected by this new limit include Attica (which encompasses Athens), Thessaloniki, and the popular tourist islands of Mykonos and Santorini, as well as other islands with populations exceeding 3,100 inhabitants. Properties in these areas must also meet specific criteria, including a minimum size of 120 square meters.

For the rest of the country, the investment threshold has been increased to €400,000, up from the previous €250,000. This shift is part of the government’s broader efforts to manage demand, maintain housing affordability for locals, and ensure the real estate market remains sustainable amidst growing international interest.

Strategic Exceptions and Flexibility

Despite these significant changes, the new law retains flexibility for specific investment cases, ensuring that Greece remains attractive to a diverse pool of investors. Notably, the original €250,000 minimum investment limit still applies under certain conditions. For instance, if an investor wishes to purchase a property currently designated for another use and convert it to residential, the lower threshold remains in place. Additionally, the €250,000 limit applies to listed heritage buildings that investors commit to renovating and making habitable, promoting the preservation and rehabilitation of Greece’s architectural heritage.

Another provision provides a grace period for investors who were already in the process of acquiring property under the old regulations. If an investor paid at least 10% of the purchase price by 31st August 2024, they remain eligible under the previous limits of €500,000 or €250,000, depending on the property’s location. This ensures fairness for those who had already made commitments before the new rules took effect.

Impact on the Greek Real Estate Market

As the new Golden Visa regime reshapes the investment landscape, the real estate market is expected to experience a wave of adjustments. With higher entry thresholds, the focus may shift towards more premium and luxury properties, especially in regions like Athens and the islands, which are already seen as prime locations for affluent international buyers.

However, the increased requirements could also temper demand in certain areas, particularly for mid-range properties. This recalibration might lead to greater stability in property prices in highly sought-after regions, as the higher investment limits act as a cooling mechanism, preventing rapid price inflation driven by foreign investment.

While these changes bring challenges, they also present new opportunities. The reduced pressure on the lower end of the market could benefit local buyers and small-scale investors, who may have been previously priced out of prime locations. At the same time, Greece’s appeal to high-net-worth individuals remains strong, as the country offers not just residency but a strategic location in Europe, a favorable climate, and growing infrastructure.

Greece’s Ongoing Real Estate Renaissance

Despite the new restrictions, Greece remains one of the most attractive destinations for real estate investment in Europe. The country’s property market has enjoyed a steady resurgence over the past five years, following a decade of economic stagnation. Substantial investments in infrastructure, urban regeneration, and tourism development—particularly along the Athenian Riviera—have added momentum to this growth.

International investors, especially those from the Middle East, China, and Russia, continue to see Greece as a promising market for both returns on investment and lifestyle. The Golden Visa program, even with the new, higher thresholds, remains a powerful tool for attracting these investors, offering the added benefit of visa-free travel within the Schengen Zone for residency holders.

Looking Ahead

As the new Golden Visa regulations take effect, the Greek real estate market will undoubtedly experience a period of adjustment. Market players will need to adapt to the new dynamics brought by the elevated investment requirements and the evolving expectations of foreign investors. However, Greece’s mix of strategic location, investment potential, and quality of life will continue to ensure its appeal to high-net-worth individuals and savvy investors looking for a long-term foothold in Europe.

Ultimately, the changes reflect the Greek government’s ambition to manage growth responsibly while maintaining the country’s competitive edge as a top investment destination. For foreign investors, the message is clear: Greece remains open for business, but with new rules that balance market growth with sustainability and local housing needs.

 

Article by

 

Kioleoglou Konstantinos REV

Civil Engineer, NTUA

MEng in Structural Engineering, N.T.U.A

MSc in Real Estate Investment and Finance, Heriot Watt University

Recognised Expert Property Valuer & European Valuer ,Tegova

Avakon