Investors from third countries outside the EU will have another three months. so that they have time to “fix” the acquisition agreements real estate at a reduced price of 250,000 euros, thereby securing the desired property resident cardbut also a property of their choice in terms of location, before the minimum value increases to 500,000 euros.

The recent law on the new immigration code of the Department of Immigration Policy, published in the Official Gazette a few days ago, contains a provision that provides that the deadline for signing a preliminary agreement (or even a final contract of sale) with an existing price of 250,000 euros is extended from 30 April to July 31st.

In the meantime, those who wish investors they will be able to conclude agreements on the acquisition of real estate in centerV southern and in northern suburbs with a minimum investment limit of 250,000 euros. From August 1st until a further extension is granted, those who wish to obtain a residence permit and at the same time wish to purchase property in the above areas (as well as Mykonos, Santorini and Thessaloniki Municipality). ) will have to invest at least 500,000 euros. Those who signed the preliminary contracts before July 31 will have until the end of 2023 to start signing the final sales contracts and apply for a residence permit for themselves and their family members.

In this context, there is a buying and selling frenzy in the market as investors struggle to meet the relevant deadlines. This situation has actually developed since last September, shortly after Prime Minister Kyriakos Mitsotakis reported to the previous TIF about doubling the investment limit for granting residence permits. “Already from the end of September, when it became clear that the threshold for investors would change, we saw a significant increase in buying interest, which peaked with the liberalization of travel for Chinese investors starting from the end of 2022,” he said. This was reported to K by Alexandros Risvas, head of the Risvas & Associates law firm, which specializes in investment immigration programs.

In popular areas, the minimum investment that secures a residence permit is increased to 500,000 euros after 31 July.

The above is reflected in the official data published Ministry of Migration Policy. From October 2022 to February this year, investors submitted 3,782 residence permit applications.

This is a significant increase considering that from February 2022 to February 2023, the corresponding number of applications is 5479. In short, 70% of applications for this time period were submitted within the last five months, which is indicative of the momentum created in the market now. In the first two months of this year alone, 1,446 new applications for a permanent investor permit were submitted, which is 252% more than last year, when the corresponding figure last year reached 411 applications. In addition, during the same period, the Department of Immigration issued 574 new permits, up 101% from last year.

It is worth noting that the inability of services to respond to this unprecedented demand has now become apparent. If we also count renewal applications from existing investors, then from February 2022 to February 2023, the number of applications was 6,922, of which 5,479 were for new licenses. Of these, only 1,918 licenses have been issued, and a further 3,548 licenses are pending.

Since entry into force golden visa program and to this day, the Chinese are the largest category of buyers. Investors from China currently own 6,314 licenses, accounting for 62.5% of the total. In second place are Turkish investors with 664 licenses and a share of 6.6%, followed by investors from Lebanon with 460 licenses or 4.6% of the total.

The Lebanese have now overtaken the Russians, who have been barred from obtaining new licenses since February last year. Today they are in fourth place on the respective list with 389 licenses and 3.8% of the total.

Why do foreigners come to Greece?

Another reason why Greece is currently a key destination for foreign investors interested in obtaining residence permits is the termination in previous months of other popular programs such as those of Portugal and Cyprus. In fact, online searches for a Greek program increased by 75.2% in the previous month alone, according to related research by British immigration investment firm Astons. This is exactly the period when the corresponding program of Portugal was cancelled, resulting in an 18.7% decrease in the number of searches on the Internet. The second significant increase in demand concerns the Spanish program, which may also be cancelled. It is reminded that the minimum investment limit in Spain is 500,000 euros. A large drop of 59.2% is also noted in Malta’s related investment immigration program, the latter of which gives the possibility of obtaining a passport.

According to another analysis by Astons, the cancellation of the program in Portugal will have another benefit for Greece, as it is estimated that it will turn to us the majority of US investors who are interested in obtaining a residence permit and have so far chosen, as mainly, the countries of the Iberian peninsulas. Following the health crisis, the number of US investors choosing to leave the US has skyrocketed, according to the company’s analysis. In 2020, that number reached 6,705, up 224% from 2019, and 2022 also saw a further increase of 18%. In this context, Greece and its real estate market is also expected to become a key destination for US investors. In 2021, Greece was the third most popular country (based on residency applications) for US investors. There were 42 applications submitted, a 740% increase from just five applications submitted in 2020.

Numbers

252% requests for a permanent investor license increased during the two months from January to February.

1446 new requests compared to 411 requests in the corresponding two months of 2022.

574 permits were issued in the first two months, which is 101% more than last year.

5479 license applications were submitted from February 2022 to February 2023.

1918 licenses were issued during the same period and 3,548 more licenses are pending.

Rising prices in the city center

His exclusion center of Athens but also southern suburbs from the possibility of acquiring propertythrough golden visa programcaused a rush of buying interest among foreign investors. Especially in the areas of the center, where it will not be possible to find houses worth at least 500,000 euros in the near future, except in very rare cases, very close to the Acropolis and within the historical center, a large number of transactions are currently being recorded.

This situation has given rise inflationary trends at the asking sale prices, pushing up to a limit of €250,000 for properties that could otherwise be sold for even 50% of that price. Of course, even in this case, foreign investors have some minimum requirements, such as proximity to the Acropolis or ISAP and metro stations that are 1-2 stops away from tourist attractions. They are also looking for fully refurbished or even furnished properties suitable for generating significant income, mainly through digital short-term rental platforms.

In this context, according to real estate market operators, areas such as Pagrati, Kipseli, Exarchia and Ampelokipi record demand. Of course, Koukaki and the areas of the historical center, such as, for example, are in the greatest demand. V Metaxourgio, Keramikos, Psirri, Plaka and Acropolis. However, there are not many options there, and they certainly far exceed the minimum limit of 250,000 euros in value, as a result of which many investors choose different points.

On the other hand, the number of foreign investors looking for real estate in the northern suburbs to obtain a residence permit is much smaller. However, some owners believe that they will be able to attract foreigners to sell their properties, as a result of which prices in these areas are also significantly higher than they were a few months ago.

Houses are even selling for 50% more than their actual price, reaching the limit of 250,000 euros.

Property market executives believe that once the €500,000 limit is in place and clear, foreigners will prefer other areas of Attica and asking prices from owners who currently value their properties at unrealistic prices will start to decline.

Southern suburbs

As for the southern suburbs and especially the areas up to Glyfada, where the €500,000 limit will apply, it is expected that demand will continue in the future, but on a clearly smaller scale than today. However, given that there is a much greater abundance of properties at prices above 500,000 euros (which may not be applicable to the center of Athens), especially in areas close to Hellinikon investments or with sea views, it is possible that some investors continue to choose real estate in the southern regions. However, in any case, the flow to these areas will be clearly lower, at least from third-country nationals who are also interested in residence permits.

It is recalled that during 2022, the inflow of foreign capital for the purchase of real estate in Greece increased by 68% compared to 2021 and amounted to 1.97 billion euros from 1.17 billion euros. At the same time, the figures for 2022 were 37% higher than the previous record set in 2019, when foreign investment reached 1.45 billion euros.