Greece Golden Visa Linked To House Price Rises

Greek Streets

A new academic study conducted by the Athens University of Economics and Business (AUEB) has reignited a significant and multifaceted debate surrounding Greece’s Golden Visa program. This program, which offers residency permits to foreign investors in exchange for real estate purchases, has come under scrutiny as the study suggests that the increasing demand from foreign investors is exacerbating the country's housing affordability challenges, making it increasingly difficult for local residents to secure affordable housing options.

In contrast, various business groups and stakeholders are vocally pushing back against these claims, defending the Golden Visa program as a crucial driver of economic development, job creation, and overall growth within the Greek economy. They argue that the influx of foreign capital through this program has the potential to stimulate various sectors, including construction and tourism, which are vital for Greece's economic recovery and sustainability.

The findings of the study indicate that there is a marked rise in interest from non-EU investors, particularly targeting prime real estate locations in urban centers such as Athens, Thessaloniki, and the picturesque Greek islands. This heightened demand has resulted in a surge of luxury construction projects that are often prioritized over the development of affordable rental housing options, thereby contributing to a growing disparity in housing availability and affordability for local populations.

Source: “The Economic and Housing Impact of Short-Term Rentals in Greece” study by Athens University of Economics and Business

The report underscores the trend where developers are increasingly focusing their efforts on attracting Golden Visa buyers, which has led to a significant reduction in the availability of budget-friendly housing units for the local populace. This situation is particularly concerning, as it further exacerbates the existing housing crisis faced by many residents who are struggling to find suitable accommodation within their financial means.

According to the study's estimates, an impressive 10.77 percent of real estate transactions recorded between 2023 and 2024 can be directly linked to investments made under the Golden Visa program. Since its inception, the program has attracted a staggering total of 5.54 billion euros in foreign investment, highlighting its substantial impact on the real estate market.

Furthermore, the report suggests that a significant number of properties acquired through the Golden Visa are not only rented at premium prices but are also often converted into short-term rentals. This trend has further tightened the supply of available housing in key urban markets, creating additional strain on affordability for local residents who are already facing challenges in securing stable housing.

SAEE pushes back: ‘Golden Visa adds housing, Doesn’t take it away’

In response to the findings of the AUEB study, the Real Estate Committee of the Association of Public Limited Companies and Entrepreneurship (SAEE) issued a robust rebuttal, strongly contesting the claims made regarding the Golden Visa program.

The SAEE argues that the ongoing housing crisis in Greece is primarily rooted in domestic issues, including years of stagnation in construction activity, a lack of coordinated housing policy, excessive taxation, and a significant rise in short-term rentals that have reportedly absorbed up to 200,000 homes in Attica alone. The association references a study conducted by Piraeus Bank, which found no direct correlation between the Golden Visa program and the current housing crisis, suggesting that the issues are more complex than the AUEB report implies.

“Golden Visa investors are revitalizing off-market properties — including abandoned buildings, industrial spaces, and commercial units — many of which are now being transformed into valuable additions to the housing stock,” SAEE emphasized. They also pointed out that recent legal changes have led to data indicating that 94 percent of properties acquired through the Golden Visa are being made available for long-term rentals, contradicting the notion that these investments are solely contributing to housing shortages.

The program has thus far attracted over 8.5 billion euros in investment, which has been instrumental in supporting the creation of more than 100,000 jobs across various sectors, according to the association. However, SAEE also raised concerns about a potential steep decline in foreign real estate investment, reporting a dramatic 31.4 percent drop in the first quarter of 2025. They have called for regulatory clarity to prevent further declines that could adversely affect the economy and housing market.

Vacant homes, not STRs, seen as root of housing strain

The criticisms levied by the AUEB study regarding the Golden Visa program appear to be situated within a broader context of Greece’s housing challenges. The study, titled “The Economic and Housing Impact of Short-Term Rentals in Greece”, primarily argues that the underlying causes of Greece’s housing crisis are driven less by the proliferation of short-term rentals and more by the staggering number of vacant homes that exist across the country — particularly concentrated in areas such as Attica and the most sought-after islands. While the influx of foreign investment and the activities associated with the Golden Visa program are acknowledged as contributing factors, the researchers stress that no single element can fully account for the rising housing costs and affordability issues that have become increasingly prominent in recent years.