“Next week, we are looking forward to the arrival of a businessman from Lebanon, as well as a family from Asia, namely China, in order to conclude sales contracts in a summary manner, without even seeing the objects they plan to buy. . Until recently, these people planned to come to Greece to see the objects and decide whether to cover them or not.” The report is from the Investment Immigration Service and describes the new reality created in the real estate market by the government’s unexpected announcement of doubling the minimum threshold that will now be required to obtain a residence permit by investment. in real estate in Greece from non-EU citizens

At a recent TIF, Prime Minister Mitsotakis himself announced a change to the golden visa program, increasing the limit from €250,000 to €500,000. The goal of this move is to increase the amount of real estate available so that new couples and families have more options to buy. However, according to active participants in the real estate market, an increase in the minimum investment amount, depending on how and where it will be applied, carries the risk of creating distortions in the market and, in particular, in sale prices.

For example, according to the information, the intention of the Minister The limit of 500,000 euros for development should be applied inexorably in the center of Athens and in Thessaloniki.

If the golden visa is increased only in the center of Athens, it will cause upward pressure in the rest of Attica.

However, it is not specified, probably because it has not yet been decided what will apply to the rest of the Attica basin and the country as a whole. “Increasing the limit only for the center of Athens, the only thing that will succeed is to redirect investors to other areas of Attica, creating upward pressure on those areas that will be most popular. Therefore, not only prices will increase there, but, of course, rents will also increase, which will eventually lead to the opposite expected result, ”explains“ K ”head of Synergy Residence Panos Rozakis. Another problem is that there are very few objects for sale in the center of Athens worth at least 500,000 euros.

Meanwhile, the announcement of the upcoming changes has already created inflationary pressure on the housing market. Property previously selling for €170,000-€180,000 has been suddenly revalued to €250,000 to attract foreign investors who want to anticipate changes to the golden visa law, according to industry officials. This is a phenomenon that is expected to intensify in the coming months, causing artificial price increases that are difficult to control and contain. After all, everyone evaluates their property based on demand and target audience.

The big question arises with regard to the timing of the implementation of changes. Although a month has passed since the initial announcement, there is still no official information on when and how the transition to the new regime will take effect. The information indicates that the government’s intention is for the new law to come into effect on January 1, 2023. At the same time, it is noted that even if advance payments for the purchase of real estate have been made, until December 31, 2022, those who wish will be able to obtain a residence permit with the current regime in the amount of 250,000 euros.

Even these figures are not confirmed and raise more questions; as to whether a notarial deed of advance is required or whether a simple private agreement will suffice. “If it is true that the change will come from the new year, it will mean less than three months, which is certainly not enough for the market to adapt. Unfortunately, buying and selling often takes longer. It only takes about three weeks to issue a taxpayer identification number to a foreign investor,” Alexandros Risvas, head of the investment immigration office of the same name, told K.

Portuguese model

According to people well versed in investment immigration programs, a move in the right direction would be to qualify a solution that would be closer to the very successful Portugal model. Based on this, if an investor buys a property aged, i.e. over 30 years old, in need of repair and modernization of the energy, then the threshold for obtaining a residence permit will be lowered, for example. up to 300,000 euros. Alternatively, lower limits could be set for properties located in degraded areas, areas with high unemployment, or even particularly sparsely populated areas. Recall that in Portugal the corresponding program began with 500,000 euros, but now the “starting point” is at the level of 280,000 euros, provided that the property is purchased over 25 years old, which is also combined with renovation work, or property located in the area of ​​the country with low GDP or a small number of inhabitants. Thus, the profitability of the program in the local community is increased.