Excitement in the Greek real estate market

In Greece, the number of properties sold to foreign investors has skyrocketed, further pushing up prices in the market and also pushing up rental prices, so that Greeks are already facing a serious housing problem.

In the situation that has developed with the country’s economy after many years of economic crisis, property owners, burdened with debts, are trying to sell it until banks and funds are selected, which receive properties at auctions at significantly reduced prices and then sell them to foreign investors.

Can anyone tell me why foreigners are on fire and buying property in Greece? Firstly, because the local population has financial problems, and it sells it cheaper, and because of this, real estate prices in Greece are significantly lower than in other countries of Southern Europe. And also because once the property is put in order, investors can rent it out through platforms like Airbnb and recoup their “investment” in a few years.

Cause The current massive increase in property purchases by foreigners is also in the fact that from July 1, the threshold for investing in real estate to obtain a “Golden Visa” in areas that are of interest to foreigners is doubled from 250,000 to 500,000 euros.

The immigration policy law recently adopted by the Department of Immigration Policy, which was published in the Official Gazette a few days ago, contains a provision that stipulates that the terms for signing a preliminary agreement (or even a final sales contract) with an existing price of 250,000 euros extended from April 30, which was until recently, to July 31. Until that time, interested investors will be able to conclude contracts for the purchase of real estate in the center, southern and northern suburbs at a lower investment threshold of 250,000 euros.

From August 1, unless a new extension is granted, those wishing to obtain a residence permit and at the same time purchase property in the above areas (as well as in Mykonos, Santorini and in the municipality of Thessaloniki) will have to invest at least 500,000 euros. Those who signed the preliminary agreements by July 31 will have until the end of 2023 to proceed with signing the final sales contracts and apply for residence permits for themselves and their family members.

In this regard, the market is experiencing a “buying and selling frenzy” as investors try to meet the appropriate deadlines. This is reflected in official figures released by the Department of Immigration. Between October 2022 and February this year, investors submitted 3,782 residence permit applications. This is significantly more considering that from February 2022 to February 2023, the corresponding number of applications is 5479. In short, 70% of applications in this period were submitted within the last five months, which is indicative of the momentum that is now created in the market.

In the first two months of this year alone, there were 1,446 new applications for a Permanent Investor License, up 252% year-on-year from 411 applications last year. Also during the same period, the services of the Ministry of Finance of the Republic of Cyprus were able to determine the most suitable investment funds. During the same period, Immigration Policy Services issued 574 new permits, up 101% from last year.

It is worth noting that it is now becoming apparent that the services are unable to cope with this unprecedented demand. If we take into account renewal applications from existing investors, then between February 2022 and February 2023, the number of applications will be 6922, of which 5479 are for new permits. Of these, only 1,918 licenses have been issued, and another 3,548 are pending.

Since the entry into force of the program “Golden Visa” and until now, the Chinese are the most numerous category of buyers. Currently, Chinese investors hold 6,314 permits, accounting for 62.5% of the total. Turkish investors are in second place with 664 licenses and a 6.6% share, followed by Lebanese investors with 460 licenses or 4.6% of the total.

The Lebanese have overtaken the Russians, who have been barred from obtaining new licenses since February last year. Currently, citizens of the Russian Federation have been banned from issuing new Golden Visas, but they are still in fourth place on the corresponding list with 389 permits and 3.8% of the total.

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