Indian investors are flocking to Greece’s Golden Visa Programme in a race to secure residency permits before new regulations raise the investment threshold.
Between July and August 2024, property purchases by Indian buyers surged by 37%, as they moved quickly to take advantage of the current €250,000 investment requirement.
The Greek government’s decision to raise the minimum investment to €800,000 in high-demand areas starting September 2024 has sparked a wave of urgency among foreign investors, especially from India.
What’s changing in Greece’s Golden Visa Programme?
Introduced in 2013, Greece’s Golden Visa Programme has long been one of Europe’s most attractive residency schemes, offering non-EU citizens the chance to gain permanent residency through real estate investments.
Indian investors have been particularly drawn to the low €250,000 investment threshold, fueling a boom in property purchases in cities like Athens, Thessaloniki, and the islands of Santorini and Mykonos.
However, the Greek government is now increasing the minimum investment in these popular regions to €800,000.
This move aims to stabilize property prices, which have been driven up by intense demand from foreign buyers while encouraging investment in less saturated areas.
Indian investors driving Greek real estate boom
The looming regulatory changes triggered a rush among Indian investors to close deals before the September deadline.
Greek real estate developer Leptos Estates reported selling out its available residential properties due to the influx of Indian buyers, many of whom invested in under-construction projects to secure their residency under the current rules.
These buyers are keen to lock in the lower investment threshold before it jumps significantly, ensuring a foothold in Greece’s thriving property market.
The upcoming hike in the minimum investment threshold is expected to cool property price inflation in Greece’s most sought-after locations.
Over the past few years, Athens, Thessaloniki, and the islands have seen real estate prices rise by 10% year-on-year, making these areas some of the priciest in Europe.
The increase to €800,000 is designed to temper the rising costs in these high-demand areas, encouraging investors to explore less saturated markets where entry prices are lower. This shift could open up new opportunities in emerging regions across Greece.
Why are Indian investors so attracted to Greece?
Greece’s Golden Visa Programme offers more than just residency.
Indian investors are attracted to Greece for its solid property market, which offers annual rental yields of 3-5%.
Additionally, the visa grants access to EU privileges, including high-quality healthcare, education, and the freedom to travel, work, and establish businesses within the European Union.
With property values steadily rising and Greece’s real estate market continuing to show resilience post-pandemic, Indian buyers see long-term financial potential in their investments.
The Golden Visa also provides a pathway to eventual EU citizenship, further adding to its appeal.
While the new investment threshold may slow demand in Greece’s most popular regions, it is expected to shift interest to emerging markets.
Investors will likely explore regions with lower entry costs, seeking opportunities for higher returns in less saturated areas.
As Greece continues its post-pandemic economic recovery, real estate remains a crucial growth driver, with foreign investors—especially from India—playing a key role in shaping the market’s future.
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