In March 2024, the Greek government announced new policies and price tiers for its widely regarded golden visa. The changes have sparked discussions about the future of the project and its impact on the Greek real estate market.

When asked which categories will see the greatest growth in the future, Christina Georgaki, managing partner of Georgaki Law, pointed out that there are three main categories.

Christina Georgaki believes that there will be three main categories: "Properties located in the city center that can be renovated and converted, with an investment of 250,000 euros; properties located in tourist destinations such as Chalkidiki and properties in the Peloponnese, with prices remaining at €400,000; and listed buildings that symbolize Greece’s magnificent architectural heritage. She expects these categories to be popular among international investors. Arousing greater interest, the latter hopes to take advantage of the opportunities brought by the new policy

"In fact, the current €400,000/€800,000 portion of the project is closed"
< br/> Ahmed Abbassi, founder of Greca Homes, believes that “converting commercial properties into residential properties” may attract more interest given the structural flexibility and cost-effectiveness of existing infrastructure.

He explained: “Commercial properties often offer structural flexibility, and developers can adapt to create multiple smaller property units, making it easier to meet the eligibility requirements for the Golden Visa while maintaining the initial investment. At an attractive €250,000 Alexander Varnavas, managing partner of Varnavas Law, agrees with Ahmed Abbassi, explaining: “In reality, the current price in this project is €400,000/€800,000. Parts have been closed. Investors and developers will now turn to exceptions for conversions and renovations, which they can offer for €250,000. "The impact is controlled rather than unrestricted. "

Christina Georgaki remains optimistic about the resilience of the Greek real estate market. She believes that "although the implementation of the new policy may require some adjustments to the company's business strategy, I expect the impact to be controllable and not "The Greek real estate market will adapt to the new policies and I think it will respond with agility and resilience." Ahmed Abbassi suggested that those who focus on actual buildings rather than Developers of greenfield land are in a better position because they can provide tangible assets immediately. He advises developers to “diversify their investment approach to include not just Golden Visa products. Include properties that generate rental income, or that can integrate into Greece’s booming hotel market. "

Alexander Varnavas admitted that in the long run, these changes may be positive, "Many dilapidated and vacant buildings may now get a second life." He also pointed out that "developers and Funds will find ways to use these exceptions to adapt to new policies. "It is only a temporary solution and does not solve the wider (housing) challenge," Christina Georgaki said of the new policy. She welcomes the policy, especially in Piraeus and the suburbs of Athens and Thessaloniki, where house prices have increased recently. She believes that "the use of golden visa properties is prohibited." Operating Airbnb will help mitigate potential challenges from future house price increases” and “by implementing these regulations, a more sustainable and balanced real estate ecosystem will be promoted, the reputation of the housing market will be protected, and the overall resilience of the Greek real estate sector will be enhanced.”

However, Ahmed Abbassi believes that the actual impact of these changes on house prices will be limited because "golden visa property transactions only account for a small proportion of all property transactions in Greece."

He emphasized , the real problem is a lack of adequate housing supply, and "without a strategy to increase housing supply, these regulatory changes may only be temporary solutions and fail to solve the wider (housing) challenge."

　Alexander Varnavas also holds a similar view, "The golden visa market accounts for less than 2% of the total market and less than 7% in popular areas. Therefore, prices are unlikely to be materially affected."

He pointed out, Although Greece is recovering after 15 years of recession and expectations of rising house prices are reasonable, "the real problem is that people's incomes have not kept pace with the economic recovery. In addition, high interest rates make it difficult for people to apply for loans.

Alexander Varnavas also pointed out that “golden visa investors can easily become a politically targeted group due to their financial status and lack of voting rights. ”

Insights from Christina Georgaki, Ahmed Abbassi and Alexander Varnavas provide valuable perspective on the challenges and opportunities ahead as Greece implements these new golden visa policies.