markets real estate in the amount of at least 1.57 billion euros in the last 12 months, namely in the period from March 2022 to March 2023, investors from third countries interested in obtaining investment residence permit in Greece according to the program “golden visa”. According to the latest official figures from the Department of Immigration Policy, a total of 6,064 requests for new permits have been filed in the last 12 months. Of these requests, 2,072 licenses have already been issued and another 3,976 are pending.

Given that the minimum investment limit is 250,000 euros, the total amount of funds flowing into the country is 1.57 billion euros. In practice, however, the figure is believed to be even higher, perhaps around 2 billion euros.for there are many who wish to purchase more expensive or even more than one property.

Characteristically, in the first quarter of this year, 1,052 new licenses were issued, which is 141% more than in the same period last year. If this figure continues, it is quite possible that 2023 will end with more than 4,000 new licenses being issued, with the possibility that this number will be even higher. At the same time, in the first three months of 2023, requests for permanent residence permits for investors increased by 156% and reached 2,367.

Between March 2022 and March 2023, 6,064 requests for a new residence permit were submitted.

According to real estate market operators, a “perfect storm” is currently being recorded in a good way, contributing to a sharp increase in buying interest from investors from third countries. As British investment immigration firm Astons points out in its respective analysis, Greece, Cyprus and Malta are the countries that benefit most from the recent cancellation of the corresponding program by Portugal and, it seems, soon also by Spain.

Greece is expected to become a key destination for investors.being one of the last “bastions” with an active investment immigration program and a real estate market that has seen a steady increase in prices in recent years.

The Spanish program is one of the most successful and popular among investors: in recent years, an average annual increase in license requests of 16.7% has been recorded. It ranks third in the world in popularity, with 2,507 applications per year, representing 13.6% of the ten most popular programs for 2021, according to Astons. The Greek program ranked sixth in the corresponding list with a share of 5.6%.

Another indication of the “wave” of investors expected in Greece due to the interruption of the program in Portugal and possibly also in Spain is reflected in the Internet search. In the last month alone, when the Portugal program was cancelled, the country recorded a decrease of 21.7%, but an increase of 67.7% for Spain and 34.1% for Greece.

In Malta, the number of search queries increased by 34.1%, while the growth in the Cyprus program did not exceed 3.7%. So, if the corresponding program in Spain is also cancelled, the Greek real estate market will almost certainly become the next most popular destination for investors from third countries.

They are rushing to catch up before the investment limit doubles.

Another reason for the “hype” for buying new property in Greece, of course, is the imminent doubling of the minimum investment amount from 250,000 to 500,000 euros. This change will affect the most popular areas for foreign buyers, namely the center of Athens and the southern suburbs, as well as affect the northern suburbs, Mykonos, Santorini and the municipality of Thessaloniki. Until July 31, interested parties will be able to sign preliminary contracts for the sale of real estate with an existing limit of 250,000 euros.

From August 1, the minimum purchase amount for real estate in popular areas doubles to 500,000 euros.

However, from August 1, all sales (and any prior arrangements) of real estate in the above areas must be for real estate worth more than 500,000 euros in order to receive the coveted residence permit.

This caused a surge in buying interest and certainly spawned speculative phenomena in the residential real estate market in these areas, especially in the center of Athens, which is also the main destination for most foreign investors. The reason is that properties located in or near the historical center of the city (such as Monastiraki, Metaxourgio, Psirri, Acropolis, Plaka and of course Koukaki, Metz and Pagrati) have increased, which often does not reflect their fair value based on their characteristics (eg age, status, location, etc.).

The fact that the My Home program was also launched for the purchase of housing by young people aged 25-39 added a very significant demand for several thousand properties (10,000 beneficiaries, many of whom are looking for property in Attica). Given that prices in the center of Athens are lower than in the northern and southern suburbs, properties in the area could be a bargain, but in some cases it seems that those interested will have to wait until at least August 1st. (and if no further extension is granted) so that foreign investors from third countries can no longer purchase property.

Then, some owners who do not find a foreign buyer can lower their current requirements so that program beneficiaries can also find a property of their liking.