Growing foreign investor interest in the Greek economy may result in a surge in demand for the Greek golden visa program in 2024.
There was a steady surge in interest in the Greek golden visa after Portugal proposed to shut down the real estate investment option of its golden visa program.
Now that the proposal has become law, all investors seeking to buy a home to qualify for permanent residence in the EU will explore alternative options.
With a minimum investment requirement of just €250,000 (for most of the municipal areas of Greece) and complete freedom for investors to use the real estate route to qualify, Greece is likely to be the biggest beneficiary of Portugal’s decision.
Of course, the Greek real estate sector is attracting foreign investments on the basis of the country’s strong economy too.
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Portugal was in this enviable position a few years ago, when investors’ confidence in its economy was high and its golden visa program permitted investments into its real estate sector.
The next few years may see Greece reaping the benefits of the twin engines of strong economic growth and a popular golden visa program.
A recent study shows that close to half of all real estate buyers in the country view the sector as a very attractive investment destination. Close to a quarter of the investors seek to buy a holiday home while one in every five buyer is interested in qualifying for the golden visa.
Bulk of foreign demand for Greek homes is coming from Israel, China, and Germany. Other countries boosting demand include Turkey, Bulgaria, Italy, and the United Kingdom.
The majority of the buyers seem to be middle-aged entrepreneurs and high net worth individuals with around 75 percent of all buyers aged between 41 and 60 years.
In terms of value of properties being purchased, around a third of all properties are priced up to €100,000. Around 56 percent of all buyers prefer properties priced between €100,000 and €300,000, which probably includes bulk of golden visa investors, and around 12 percent of the investors prefer properties above €300,000.
This data is significant because this shows that most foreign demand for Greek real estate does not come from golden visa buyers alone. Many foreigners preferred investing in a second home or a holiday home in Portugal to enjoy the twin benefits of high return on investment as well as the golden visa.
The same trend seems to be playing out in Greece too. This is why demand for the golden visa program is unlikely to dip despite the doubling of minimum investment requirement for those investing in Athens and other specific municipal areas.
At €500,000 real estate for a golden visa, investors may still prefer the Greek program over Portugal because the former allows investments in real estate.
Other countries like Spain, which too offers a €500,000 real estate option to golden visa investors, may lag behind because Greece has a stronger economy and offers better prospects of attractive returns on the investment over the long run.