What Happened?
By the current August, a significant number of real estate transactions have taken place in Greece, involving both domestic and foreign investors. Statistical data confirms that the real estate market in the country is thriving, and substantial growth in this sector is largely attributed to active interest from foreign investors.
Transaction Dynamics
By the beginning of August 2023, over 112,000 real estate transactions had been concluded in Greece. This figure impressively surpasses the number of transactions for the entire year of 2022, which was 139,000. In comparison to previous years, such as 2021 and 2020, where around 105,000 and 75,000 transactions were made respectively, the growth is clearly evident.
Significance of the Increase
Real estate experts affirm that the most significant rise in transactions was initiated by foreign investors. Their active involvement contributed to the increase in transaction volume in the market. Notably, the statistics for 2022, representing a ten-year high, are likely to be surpassed in the current year. This is due to the fact that approximately 1,000 property transfers are recorded daily.
State Revenues
As a result of the increased number of real estate transactions, the government has received substantial tax revenue, amounting to around €301 million. This figure significantly surpasses the revenue for the entire year of 2022. The heightened demand for real estate has also led to an increase in property prices.
Role of "Golden Visas"
"Golden Visas" have played a significant role in driving the development of the real estate market. Foreign citizens seeking to obtain "Golden Visa" status invested over €1 billion in property purchases in the first half of 2023. This figure is nearly three times higher than the corresponding period of the previous year (€361 million).
New Requirements for "Golden Visas"
The increase in the minimum investment amount for obtaining a "Golden Visa," along with the introduced changes, contributes to market development. Now, for the most sought-after destinations like Attica, Thessaloniki, Mykonos, and Santorini, the minimum investment amount has doubled to €500,000. Additionally, the option to use several less expensive properties to meet this amount has been excluded.
Market Characteristics
Currently, there is an observable gap between the assessed value of real estate set by the government for taxation purposes and the market value, especially in the central districts of Athens as well as the northern and southern suburbs.
Conclusion
Foreign investor interest actively stimulates the growth of the Greek real estate market. The increase in transactions, government revenues, and the significant impact of "Golden Visas" largely shape the current state of this industry. Concurrently, it is essential to consider the peculiarities of changes in the requirements for obtaining "Golden Visa" status, which also contribute to the development of the real estate market in Greece.