Golden Visa Price Hike Fuels Piraeus Property Boom

A surge in house sales, particularly in Piraeus, the port city of Athens, has followed an increase in the minimum investment required for foreigners seeking a Golden Visa.

Effective September 1st, the threshold for property investment in prime locations like central Athens, its affluent suburbs, Thessaloniki, Mykonos, Santorini, and larger islands will jump from €500,000 to €800,000. Other areas will see a rise from €250,000 to €400,000. Additionally, applicants must now purchase a single property exceeding 120 square meters, discouraging the previous trend of acquiring multiple smaller properties.

This move has fueled demand in Piraeus, pushing average property values up by a remarkable 28.9% year-on-year in the second quarter of 2024, reaching €2,471 per square meter. While this remains more affordable than Athens' southern coastal suburbs (€3,750 per square meter), the growth is undeniable.

Foreign investors, particularly Chinese, Arabs, and Turks, are drawn to Piraeus' strategic location near Greece's largest port. Estimates suggest that Golden Visa-related property acquisitions could surpass 5,000 this year.

Besides the five-year residency permit, property investment offers a lucrative return of around 4% annually, notes Kosmas Theodoridis, President of the European Real Estate Brokers Association.

The influx of investment has also impacted the rental market. Delfi Partners research reveals that Piraeus experienced a 14% year-on-year rent increase in the second quarter of 2024, with most rents ranging between €8.20 and €10 per square meter.

However, a significant portion of Golden Visa-acquired properties remain vacant, with some resold after a few years without visa renewal, highlighting a potential disconnect between investment and genuine residency intentions. The most profitable resales occurred between 2019-2020, driven by owners who capitalized on depressed prices during the 2010 financial crisis.