As highlighted in the recent announcement by the Hellenic Real Estate Association (ΣΑΕΕ), in response to recent media reports on studies and research findings regarding the housing crisis and its causes, it is crucial to address certain key factors often overlooked in the public discourse.
As clearly outlined at the ΣΑΕΕ conference last February, with the topic "Challenges & Opportunities in the Real Estate Market | The Role of the Housing Crisis," a detailed study by Piraeus Bank indicates that the Golden Visa Program is not a factor contributing to the housing crisis. On the contrary, the Golden Visa can and should be part of the solution. The rental crisis, in particular, is a complex issue primarily stemming from domestic causes.
The Real Causes of the Housing Crisis
According to data gathered by the Real Estate Committee of the Association, the lack of affordable housing for Greeks is not caused by the Golden Visa program and is far from one-dimensional. Instead, it is the result of several factors:
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The changing structure of the Greek family due to rising divorce rates and the increased need for more residential properties.
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The absence of a structured national housing policy for decades.
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The decline in construction activity between 2010-2020.
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The heavy taxation of property, which has discouraged thousands of property owners from renovating or leasing their properties.
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The rapid increase in short-term rentals (Airbnb), which absorbed approximately 200,000 properties in the Attica region alone.
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The growing presence of EU citizens residing in Greece but working remotely for their home countries—currently, 20% of tenants in Attica are non-Greek citizens (Bank of Greece, 2024).
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The delay in the entry of residential properties held by servicers and banks into the market. Approximately 23,000 properties, 20% of which are in advanced stages of readiness, are expected to enter the market soon, according to the President of the Union of Debt Collection Management Companies, Mr. Tasos Panousis. The process of preparing each property is estimated to take 2-3 years.
The Golden Visa Does Not Remove Properties from the Market—it Adds and Upgrades Them
The vast majority of investors under the Golden Visa program, especially after the passage of Law 5100/2024 and the recent changes effective from 01/09/2024, invest in properties that are outside of the primary market, specifically:
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Commercial properties converted into residential units.
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Old, abandoned buildings or industrial spaces being repurposed.
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Entire buildings that are fully renovated, thus enhancing both the quantity and quality of the available housing stock.
According to the Ministry of Migration, only 6% of Golden Visa investors reside in the properties they have purchased. The remaining 94% are available exclusively for long-term lease, as per the regulations that came into effect on 01/09/2024. Therefore, the availability of homes for the domestic population is not reduced. On the contrary, new homes are added, many of which are in areas that had been abandoned for years by the traditional real estate market.
Over €8.5 Billion in Capital Inflows – Thousands of Jobs and Tax Revenues
Since 2013, the Golden Visa program has generated:
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Over €8.5 billion in direct foreign investment in domestic real estate. Based on pending applications since July 2023, this amount is expected to exceed €12 billion.
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The revitalization of downgraded neighborhoods such as Kypseli, Patissia, Exarchia, Koukaki, and others, which are being reinvigorated with investments in properties and building renovations.
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The creation and maintenance of over 100,000 jobs in sectors such as construction, architecture, property management, tourism, and hospitality (Bank of Greece, 2024).
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Increased tax revenues from property transfers, VAT, property taxes (ENFIA), fees, and indirect contributions through increased consumption in areas with high investment activity.
Worrying Decline in Investments
Foreign investments in real estate dropped by 31.4% in Q1 of 2025, from €520 million to €356 million. We estimate that this decline will exceed 50% in the first half of 2025, but unfortunately, we will only fully perceive the situation by the end of October, when it will be too late to reverse the situation. A significant factor in this sharp decrease is the fact that the clarifying Joint Ministerial Decision (KYA) for the change of use has not yet been signed, making it impossible to acquire the Golden Visa at the €250,000 threshold.
The Solution Is Not Abolition—but Utilization
Instead of targeting an investment tool that has demonstrably strengthened the national economy, the public debate should focus on:
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Designing an organized housing policy, with social housing, affordable rents, and tax incentives for domestic property owners.
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Producing new homes through Public-Private Partnerships (PPP) and collaboration with the private sector.
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Supporting construction activity through urban planning stability and speeding up permitting processes.
A Mature Society Does Not Push Away Investors—it Utilizes Them
Today, Greece competes with countries such as Spain, Portugal, Cyprus, Bulgaria, Romania, and Italy to attract investment capital. According to 2023 data, Greece recorded 7,752 Golden Visa applications, securing first place globally in demand for residency-by-investment programs. Instead of eliminating a tool that contributes to the revitalization of our cities, we should strengthen it so that it simultaneously serves both development and social cohesion. Addressing the housing crisis for Greek citizens is absolutely necessary. However, the Golden Visa is not the problem.
