Indian Investors Flock to Buy Houses in Greece

Surge in demand pushes up real estate prices, particularly in high-demand areas like Athens, Thessaloniki, Mykonos and Santorini

Greece has witnessed a remarkable 37% surge in property purchases by Indian investors between July and August. This flurry of activity is driven by Indian buyers eager to secure permanent residency under Greece's Golden Visa Programme before significant regulatory changes took effect on September 1.

Launched in 2013, Greece's Golden Visa programme offers residency permits in exchange for property investments, making it an attractive option for non-EU citizens. Its initial €250,000 (Rs 2.2 crore) threshold was one of Europe's lowest, drawing significant investment and boosting Greece's real estate market.

Investor Interest

• Indian property purchases in Greece increase by 37% between July and August, driven by the desire for residency through the Golden Visa Programme
• The Greek government raises investment threshold for the Golden Visa from €250,000 to €800,000 for popular regions, effective September 1, 2024
• Real estate values in Greece rising at approximately 10% year-on-year, with a notable increase in interest following the pandemic

However, the surge in demand pushed up property prices, particularly in high-demand areas like Athens, Thessaloniki, Mykonos and Santorini. To address this, the Greek government raised the investment threshold to €800,000 (approx Rs 7 crore) for properties in these regions, effective September 1 2024.

Sanjay Sachdev, Global Marketing Director of Leptos Estates, noted an "unprecedented rush" of Indian homebuyers in recent months. "Many investors purchased under-construction projects with handover periods of 6-12 months," said Sanjay Sachdev, as per reports.

Many invested in properties under construction, with completion timelines of six to twelve months. Leptos Estates reported selling out its available residential stock in Greece due to this surge.

"Many investors purchased under-construction projects with handover periods of 6-12 months" - Sanjay Sachdev, Global Marketing Director of Leptos Estates

Effective September 2024, the revised Golden Visa programme seeks to temper rapid price increases; and promote equitable development and direct investment towards less saturated areas. Before the rule changes, Indian investors gravitated towards popular Greek islands like Paros, Crete, and Santorini for property purchases.

The appeal of Greece's Golden Visa Programme for Indian investors includes attractive rental yields of 3-5% annually, making real estate investments financially rewarding and access to high-quality healthcare, education, and the opportunity to establish businesses within the EU. Property values in Greece too have been increasing at an impressive rate of 10% year-on-year, with significant growth following the pandemic.

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