Indian investors have been snapping up properties in Greece at an unprecedented pace in the months leading up to the September 1 revamp of the country’s Golden Visa Programme. The amendments doubled the minimum investment required for permanent residency, leading to a sharp increase in property purchases by Indian buyers eager to secure visas before the new rules came into effect.
Between July and August 2024, property purchases by Indians surged by 37% as they rushed to beat the deadline. Before the change, the minimum investment in real estate was €250,000 (approximately Rs 2.5 crore). With the new rules, the minimum investment in Tier I cities, including Athens, Thessaloniki, Mykonos, and Santorini, has skyrocketed to €800,000. In Tier II regions, the threshold has risen to €400,000, making the programme significantly more expensive.
Surge in Property Demand from Indian Investors
The changes are part of Greece’s broader strategy to ensure affordable housing for its citizens, particularly in high-demand areas. The government aims to divert investment to less crowded regions while alleviating pressure on local real estate markets.
Sanjay Sachdev, Global Marketing Director at Leptos Estates, revealed that the spike in demand from Indian investors was so intense that the developer sold out its available residential inventory in Greece. “We saw a rush of Indian homebuyers in recent months, many of whom purchased under-construction projects with handover periods of six to twelve months,” said Sachdev.
Greece’s Golden Visa Programme
Launched in 2013, Greece’s Golden Visa Programme offers residency or citizenship in exchange for investments in real estate or other approved financial vehicles. It has been particularly popular among wealthy Indians looking for second homes in Europe, drawn by benefits such as rental income, access to European healthcare and education, and the ability to establish businesses in the European Union (EU).
Before the new regulations, Indian investors focused on high-profile Greek islands like Paros, Crete, and Santorini for their real estate purchases. Rental yields in Greece typically range from 3-5% annually, with property values appreciating by 10% year-on-year. Since the pandemic, capital appreciation rates have nearly doubled, from 5% pre-COVID.
Europe’s Investment Appeal for Wealthy Indians
Greece and Cyprus remain top choices for Indian investors, especially after countries like Portugal, Spain, and Ireland closed their permanent residency programmes. Anil Rego, founder and Fund Manager at Right Horizons, noted that Greece offers one of Europe’s most affordable residency programmes. Popular cities like Athens, Mykonos, and Thessaloniki provide attractive rental yields and capital appreciation, especially compared to markets like the US and UK, which demand significantly larger investments.
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With its relaxed European lifestyle, high-quality healthcare, and moderate inflation, Greece remains an attractive investment destination for high-net-worth individuals (HNIs) from India seeking property abroad.
