The interest of Indian investors in Greece’s real estate market has seen a sharp rise in recent months, especially due to the recent changes in Greece’s Golden Visa Programme. Starting from September 1, new rules have made it mandatory for foreign investors to double their investment if they want to acquire permanent residency in Greece.
New Investment Requirements for Greece’s Golden Visa
Previously, an investment of approximately Rs 2.5 crore in Greek real estate was enough for Indian investors to secure permanent residency in the country. However, the new rules have significantly increased this amount. To gain permanent residency in popular cities like Athens, investors now need to put in at least Rs 8 crore. For those looking to invest in smaller, tier-2 cities, the required investment is now Rs 4 crore, still a notable increase from the earlier amount.
This change has prompted a rush among Indian investors to secure properties before the new rules were implemented. According to Leptos Estates, a property development firm, Indian investors bought 37% more properties in Greece in July and August compared to earlier months. This sudden surge was driven by the desire to lock in the lower investment threshold before the September deadline.
Why Greece Increased Investment Thresholds
The Greek government introduced these changes to ease the pressure on the real estate markets in major cities, which had seen a significant influx of foreign investments, making property prices surge. Greek Finance Minister Kostis Hatzidakis stated that these adjustments aim to divert investments toward less populated areas, helping to meet the housing needs of local residents and reducing real estate pressure in larger cities like Athens.
This strategy is also expected to encourage development in underpopulated regions, offering a balanced growth of the real estate market across the country.
Rising Interest in Greece Among Indian Investors
Sanjay Sachdev, Global Marketing Director at Leptos Estates, revealed that the demand from Indian investors has been overwhelming in recent months. “We sold out our available stock due to the high demand from Indian buyers,” he said. Many investors have even purchased under-construction properties, expected to be completed within the next 6-12 months, reflecting their strong faith in the Greek real estate market.
One of the primary reasons Indian investors are attracted to Greece is the rental income opportunities and the potential to start a business within the European Union. The real estate market in Greece has been offering rental yields of around 3-5% annually, with property prices growing at a steady rate of about 10% per year. This makes it a lucrative option for those seeking both immediate returns and long-term value appreciation.
Greece’s Golden Visa: A Popular Choice for Wealthy Indians
Launched in 2013, Greece’s Golden Visa Programme allows foreign investors to obtain Greek residency by investing in real estate, government bonds, or other financial instruments. This has proven to be a popular option among wealthy Indians, especially after Portugal, Spain, and Ireland closed their similar visa programs.
Greece’s attractive real estate market, combined with high-quality healthcare and education systems, makes it a preferred destination for Indian investors looking to secure a European foothold. Some of the most sought-after locations for these investments include Greek islands like Santorini, Crete, and Paros, which offer not only stunning natural beauty but also strong returns on real estate investments.
A Shift in Focus for Indian Investors
The recent changes to Greece’s Golden Visa Programme have prompted many Indian investors to turn their attention to less crowded areas in Greece, as well as to neighboring Cyprus, which offers similar opportunities. After the pandemic, the interest in European properties has increased, and Greece remains at the top of the list for Indian investors seeking a reliable and rewarding investment opportunity.
