The misfortune of one is the fortuity for the other. Russian and Chinese investors show a great interest in acquiring properties in Greece especially now that Greek banks are getting rid of their nonperforming loans with online auctions of properties. There is a high demand for the Golden Visa program as it opens the way for non-EU citizens for a ticket to Europe.
There is a rising international interest in the acquisition of properties in Greece via online auctions especially from countries that could take advantage of the Golden Visa program as Greece grants visa to non-EU citizens if they buy properties worth at least 250,000 euros.
The low prices and the prospect of future capital gains, as well as the timing of Greece’s expected exit from the bailout program, have increased the appeal of the local property market, not only in the eyes of foreign investment funds but also individual foreign investors from Russia and China.
George Kachmazov, chief executive officer of Russian real estate platform Tranio, told Bloomberg last week, “We aim to participate in Greek real estate e-auctions and to acquire properties directly from banks.”
He has already purchased a building in Athens and is planning to purchase five more with the aim of reselling the apartments to foreign investors interested in obtaining a Greek residence permit through the Golden Visa program. Given that the country’s market prices have stabilized, buyers can look forward to capital gains thanks also to the growing tourism interest in Greece and the rise of short-term letting via home-sharing platforms.
Chinese investors are also eyeing the country: Carrie Law, CEO of Chinese real estate website Juwai, told Bloomberg: “We have some buyers who are very interested in Greece’s e-auction process. They believe it will offer opportunities to purchase at the bottom of the market.”
According to Kachmazov, Greece’s low threshold for a Golden Visa is an extra advantage: In Greece, investors are required to spend at least 250,000 euros, while, for example, in Portugal, the figure is 500,000 euros (or 350,000 euros for properties older than 30 years).
Citing data from Enterprise Greece, the state agency responsible for promoting investments and exports, Bloomberg notes that Greece awarded 2,053 golden visas between 2013 and October 2017, with Chinese investors accounting for 43 percent of them. Russians are in second place with 18.6 percent and investors from neighboring Turkey third at 8.4 percent. Greece has raised more than 513 million euros in foreign investments from the visa program.
Turkish citizens have also a great interest to acquire property in Greece and get a Golden Visa nevertheless due to the political instability in Turkey and the geographical closeness.
The growth in demand from non-European Union citizens is reflected in data by online ad website Spitogatos: This year, searches for Greek property have soared from China (203 percent), Turkey (90 percent), Germany (68 percent) and the United Arab Emirates (50 percent).
