Indian investors snapped up properties in Greece at a record pace ahead of the country’s Golden Visa Programme’s September 1 revamp that doubled the minimum investment required to qualify for a visa through real estate purchases.
Property purchases by Indians in the European Union nation saw a 37 percent surge between July and August as buyers rushed to secure permanent residency.
Property development firm Leptos Estates revealed that before the amendments, Indian investors could secure permanent residency in Europe with an investment as low as €250,000 (approximately Rs 2.5 crore). Now, the minimum investment in Tier I cities such as Athens, Thessaloniki, Mykonos, and Santorini has gone up to €800,000. In Tier II regions, which include all other parts of Greece, the threshold has risen to €400,000 from €250,000.
The move is part of a broader housing policy aimed at ensuring affordable and quality housing for Greek citizens by easing the pressure on real estate in highly sought-after areas. "The government hopes this will encourage investment in less crowded areas while addressing local housing needs," Greece's finance minister Kostis Hatzidakis said in April.
The change led to a flurry of activity from Indian investors. "We saw a rush of Indian homebuyers in recent months, to the point where we sold out our available residential stock in Greece. Many investors purchased under-construction projects with handover periods of six-twelve months," said Sanjay Sachdev, Global Marketing Director of Leptos Estates.
Wealthy Indians seek second homes in Europe
Greece’s Golden Visa Programme, launched in 2013, offers residency or citizenship in exchange for investments in real estate, government bonds, or other approved vehicles. The programme has become increasingly popular with wealthy Indians seeking second homes in Europe, drawn by benefits of rental income, access to healthcare and education, and the ability to establish businesses in the EU.
Before the new rules were implemented, Indian investors targeted popular Greek islands like Paros, Crete and Santorini for their real estate purchases. Rental yields in Greece typically range from 3-5 percent annually, with property values appreciating by 10 percent year-on-year. The capital appreciation rate has nearly doubled post-COVID, from 5 percent pre-pandemic, further fueling demand from Indian investors.
"Greece and Cyprus remain top real estate choices for Indian investors, especially after countries like Portugal, Spain and Ireland closed their permanent residency programmes," Sachdev said. Cyprus offers a similar investment entry point at €300,000 but recent changes limit the residency programme to two generations, excluding parents or grandparents.
Europe’s attractive investment landscape
Anil Rego, founder and Fund Manager at Right Horizons, said Indian investors are increasingly drawn to European countries for their affordable residency programmes and favourable lifestyle. Countries like Greece provide access to high-quality healthcare, education, and a laid-back European lifestyle, combined with decent rental returns and moderate inflation.
Greece offers one of the most affordable residency programmes in Europe, with popular cities such as Athens, Thessaloniki, Mykonos and Santorini being top choices. Compared to markets like the US and UK, which require significantly larger investments of Rs 8-20 crore and offer lower rental yields of around 3.5-4 percent, Greece remains an attractive option for high-net-worth individuals (HNIs) seeking property abroad.
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