Surge in Real Estate Purchases Ahead of New Investment Thresholds

As Greece prepares to revamp its Golden Visa Programme on September 1, Indian investors have been quick to capitalize on the current investment landscape, leading to a remarkable 37 percent increase in property purchases between July and August. This influx is largely driven by a rush to secure permanent residency before the minimum investment requirement doubles.

Golden Visa Programme Undergoes Major Changes

Before the impending changes, Indian investors could obtain residency in Greece with a real estate investment of just €250,000 (around Rs 2.5 crore). However, the new regulations will raise this threshold to €800,000 in Tier I cities, which include popular destinations like Athens, Thessaloniki, Mykonos, and Santorini. For Tier II regions, the requirement will increase to €400,000.

These modifications are part of Greece’s broader housing policy aimed at providing affordable and quality housing for its citizens. According to the Greek finance minister, the government intends to alleviate pressure on the real estate market in crowded areas while promoting investment in less populated regions.

Record Sales Amid Changing Landscape

The announcement of the new regulations has led to a surge in interest from Indian homebuyers. Property development firm Leptos Estates noted that they have sold out their residential stock in Greece due to heightened demand. Many investors have opted for under-construction projects, anticipating handover periods of six to twelve months.

Appeal of Second Homes in Europe

Since its inception in 2013, Greece’s Golden Visa Programme has attracted wealthy individuals seeking second homes in Europe. The programme offers residency in exchange for investments in real estate, government bonds, or other approved avenues. For Indian investors, the appeal lies in the potential for rental income, access to quality healthcare and education, and the ability to establish businesses within the EU.

Prior to the adjustments, popular Greek islands such as Paros, Crete, and Santorini were favored for real estate purchases. The average rental yields in Greece range from 3 to 5 percent annually, and property values have appreciated by approximately 10 percent year-on-year, spurred on by increased demand post-COVID.

Greece Stands Out in European Market

As other countries like Portugal and Spain have closed their residency programmes, Greece and Cyprus remain attractive destinations for Indian investors. While Cyprus offers an entry point at €300,000, recent changes limit its residency options to two generations.

Industry experts emphasize that the appeal of Greece lies in its affordable residency options, high-quality lifestyle, and reasonable rental returns. Compared to the US and UK markets, which require significantly higher investments and yield lower returns, Greece continues to attract high-net-worth individuals seeking advantageous property opportunities abroad.