by admin Winners and losers from the increase in the limit of 500,000 euros
The real estate market is now looking for new opportunities, after the changes to the “Golden Visa” scheme and the investors’ frenzy during the first half of the year. From August 1st, visas increased from 250,000 to 500,000 euros for those who choose to buy real estate in Athens, Thessaloniki, Mykonos and Santorini, which turns the interest of investors elsewhere, who look in other areas of Athens. Market agents speaking to OT report that the change in the conditions for granting the Golden Visa triggered a barrage of real estate purchases as it caused a sharp increase in nominative prices in many areas of Attica, even where there was no interest.
The new areas for Golden Visa
Part of the third-country investors, who are already aiming to obtain a Golden Visa, have turned to real estate in areas of the Western suburbs, such as Aegaleo, Peristeri and Ilion. The accumulated demand in the areas of the Western and Eastern suburbs is expected to increase sales prices, just as it happened in many areas of the centre of Athens, such as Exarchia, Neapoli and Kypseli. Also, areas such as Piraeus, Pallini, Peristeri, Gerakas, have already started to emerge as possible destinations for those who do not wish to invest more than 250,000 euros. The requirement for third-country investors is that the properties they will acquire are high on the list of demand for rental, whether short-term or long-term. On the contrary, the minimum investment limit has now doubled in the Central, Southern and Northern sectors of Attica, as well as in Mykonos, Santorini and the municipality of Thessaloniki. This includes all the areas of the Southern suburbs, namely the municipalities of Moschato – Tavros, Kallithea, Palaio Phalero, Nea Smyrni, Elliniko – Argyroupoli, Agios Dimitrios, Alimos and Glyfada, whicare pushing the prices up. The same will happen in the center of Athens (municipalities of Athens, Byron, Galatsi, Dafni – Ymittos, Zografou, Ilioupoli, Kaisariani and Philadelphia – Chalkidona), as well as in all the northern suburbs, i.e. in the municipalities of Agia Paraskevi, Marousi, Vrilisia, Heraklion, Kifissia, Lykovrysi – Pefki, Metamorfosi, Nea Ionia, Papagou – Cholargos, Penteli, Philothei – Psychiko and Chalandri.
The numbers speak for themselves
According to the data of the Ministry of Immigration and Asylum, during the first half of this year, 4,150 requests for the initial granting of a residence permit have been submitted, while real estate worth at least 1.03 billion euros has been bought and sold. This June, 321 initial permits were issued, in comparison to just 79 in the corresponding month of 2022, which is an increase of 306%. A total of 1,886 permits were issued in the first half of this year, compared to only 726 permits that had been issued during the corresponding period of the previous year. Based on the relevant data, in a total of the 9,122 applications for initial granting and renewal of permanent investor residence permits, submitted during the 12 months between June 2022 – June 2023, only 3,229 had been approved by the end of June, i.e. only 35% of the total. It is reminded that Golden Visas became fashionable after the financial crisis of 2008, with countries such as Portugal, Ireland, Greece and Spain offering them as a way of attracting investments. Since then, they have brought in billions of Euros as foreign millionaires sought easier travel and comfortable retirements – sometimes even European citizenship.
Source: Andromachi Pavlou, 5/9/2023