Wealthy Indians Rush to Buy Property in Greece Ahead of Golden Visa Rule Changes
Over the last few years, Greece has become a hotspot for wealthy Indian investors looking to secure permanent residency in Europe. The nation’s Golden Visa Programme, launched in 2013, offers residency and citizenship opportunities in exchange for investments in real estate and other approved vehicles. The program’s allure skyrocketed, especially after Greece’s tourism and real estate sectors boomed post-pandemic. However, recent amendments to the program, which took effect on September 1, 2024, have prompted a rush of investment from Indians.
Golden Visa Rule Changes: The New Threshold:
Previously, Indian investors could secure permanent residency in Greece with a real estate investment as low as €250,000 (approx. Rs 2.5 crore). This threshold made Greece one of the most affordable residency-by-investment programmes in Europe, attracting a surge of interest from high-net-worth individuals (HNIs) in India.
From September 1, 2024, the minimum investment requirement has risen sharply, with Tier I cities like Athens, Mykonos, and Santorini now requiring an investment of €800,000. In Tier II areas, including the less developed regions, the threshold has been increased to €400,000. This major policy shift is designed to manage the influx of foreign buyers, particularly in sought-after areas, and promote investment in lesser-populated regions, alleviating pressure on the housing market.
Wealthy Indians Greek Golden Visa
Why Indian Investors Are Flocking to Greece:
As soon as the news of these changes broke, Indian investors rushed to lock in property deals before the new requirements took effect. Sanjay Sachdev, Global Marketing Director of Leptos Estates, shared, “We’ve seen unprecedented demand from Indian buyers over the last few months. Many investors have purchased under-construction projects, anticipating high returns and quick handovers.”
Greece has become a popular destination for Indian investors for several reasons:
Favorable Real Estate Market: With property prices appreciating at around 10% annually and rental yields between 3-5%, Greece offers solid returns on investment.
European Residency: Access to European healthcare, education, and business opportunities through the Golden Visa is a major pull for HNIs seeking a second home or lifestyle upgrade.
Lower Entry Point Compared to Other Countries: Compared to the US, UK, and even Spain or Portugal, which require significantly higher investments, Greece's previous €250,000 threshold was highly appealing.
The Bigger Picture: European Real Estate Investment Trends:
As countries like Spain, Portugal, and Ireland have recently closed their Golden Visa schemes, Greece and Cyprus have emerged as top destinations for Indian investors. While Cyprus offers a lower investment threshold at €300,000, recent changes have limited its residency programme to only two generations, excluding extended family like parents or grandparents. This makes Greece a more attractive long-term option for families.
Additionally, Greece’s Golden Visa provides investors with access to a stable and appreciating real estate market. Post-COVID, the capital appreciation rate in popular areas like Athens and Thessaloniki has doubled from 5% to 10%, creating an attractive environment for those looking for both residency and financial returns.
Impact of New Rules on Indian Investment:
The new Golden Visa rules are expected to impact Indian investors significantly, especially those looking to purchase property in Greece’s most coveted areas. While demand is unlikely to drop drastically, the focus may shift to more affordable Tier II regions, where the investment threshold remains at €400,000. Greek officials hope these changes will balance the real estate market by diverting investment into lesser-known areas, providing affordable housing for Greek citizens while maintaining interest from international buyers.
Finance Minister Kostis Hatzidakis explained, “Our goal is to promote investment in less crowded regions and ensure affordable housing for our citizens. We believe this policy change will benefit both foreign investors and the local community in the long run.
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