Golden Visa Not to Blame for Greece’s Housing Crunch, Say Experts

As Greece grapples with a growing housing crisis, a contentious debate has resurfaced over whether the country’s Golden Visa program—which grants residency to non-EU nationals in exchange for real estate investments—has exacerbated the problem. However, a new wave of data and expert analyses suggests otherwise.

At a February conference organized by the Hellenic Association of Societes Anonymes & Entrepreneurship (SAEE), a comprehensive study by Piraeus Bank concluded that the Golden Visa is not a driver of housing unaffordability in Greece. On the contrary, experts argue it could be part of the solution to a complex set of challenges facing the country’s rental and housing markets.

Structural Factors Behind Greece’s Housing Crisis

According to the SAEE’s Real Estate Committee, the housing shortage is primarily the result of domestic structural weaknesses, not foreign demand. Key contributing factors include:

• A shift in household structure due to increased divorce rates and demand for more individual housing units
• Decades-long absence of national housing policy
• Minimal construction activity during the 2010–2020 financial crisis
• Heavy taxation of property, discouraging investment in renovations or rentals
• A boom in short-term rentals (Airbnb), with roughly 200,000 homes absorbed in Attica alone
• A sharp rise in remote EU workers residing in Greece, now comprising 20% of tenants in Athens
• The slow release of repossessed or distressed assets held by banks and servicers—about 23,000 units, of which only a fraction is expected to reach the market soon
• Restrictive mortgage lending standards by Greek banks

Golden Visa: A Catalyst, Not a Culprit

Criticism of the Golden Visa program appears increasingly misdirected, according to industry professionals and official data. Since legislative changes introduced in September 2024 (Law 5100/2024), the vast majority of foreign real estate investors are acquiring non-core assets: commercial properties converted to residential use, derelict or abandoned buildings, industrial spaces, and entire blocks undergoing full renovation.

Only 6% of Golden Visa holders reside in the properties they purchase, while 94% of the housing stock acquired is made available for long-term rental, as mandated by recent policy changes.

“The program actually increases the housing stock—particularly in previously neglected urban areas,” a source at the Ministry of Migration confirmed.

The Golden Visa scheme has channeled over €8.5 billion in direct investment into Greek real estate since 2013. Based on pending applications since July 2023, the total is projected to exceed €12 billion.

Neighborhood Revivals, Job Creation, and Tax Gains

Previously rundown districts such as Kypseli, Exarchia, Koukaki, and Patissia have been revitalized through Golden Visa-driven investment, breathing new life into Athens’ urban fabric.

The program has also created or sustained more than 100,000 jobs across construction, architecture, property management, tourism, and hospitality sectors (according to the Bank of Greece). Furthermore, it has yielded significant tax revenues from property transfers, VAT, ENFIA, fees, and indirect consumption in revitalized neighborhoods.

Warning Signs: Foreign Investment Now in Decline

Despite its long-term benefits, foreign real estate investment in Greece fell sharply by 31.4% in Q1 2025—from €520 million to €356 million—raising concerns about the country’s ability to maintain momentum in urban regeneration and real estate development.

Call for National Housing Strategy

Rather than scapegoating the Golden Visa, SAEE urges policymakers to focus on a coordinated national housing policy that includes:

• Social and affordable housing programs
• Tax incentives for domestic landlords
• PPPs (Public-Private Partnerships) for new housing stock
• Simplified urban planning and faster permitting

“The housing crisis won’t be solved by attacking foreign capital,” said an SAEE representative. “It will be solved by building more homes, modernizing the rental market, and providing long-term policy stability.”

Source: pagenews.gr