Rich Indians are rushing to Greece to increase their wealth, even before the golden visa rule changes
Greece saw a 37 percent increase in property purchases by Indian investors between July and August, as buyers rushed to seek permanent residence ahead of changes to the country's Golden Visa program. The new rules, which came into force on September 1, more than doubled the minimum investment required to qualify for a visa through real estate purchases.
Property development firm Leptos Estates revealed that prior to the amendment, Indian investors could secure permanent residency in Europe with an investment as low as €250,000 (roughly Rs 2.5 crore). Now, the minimum investment in Tier I cities such as Athens, Thessaloniki, Mykonos and Santorini has reached €800,000. In second-tier regions, which include all other parts of Greece, the threshold has been raised from €250,000 to €400,000.
The move is part of a broader housing policy aimed at easing the pressure on real estate in highly sought-after areas with the aim of ensuring affordable and quality housing for Greek citizens. "The government hopes that this will encourage investment in less crowded areas while addressing local housing demand," Greece's finance minister Kostis Hatzidakis said in April.
These changes led to Indian investor activity. "In recent months we have seen an influx of Indian homebuyers, where we have sold off our available residential stock in Greece. Many investors bought under-construction projects with six-twelve month handover periods," said Sanjay Sachdev, Global Marketing Director, Leptos of the estate.
Greece's Golden Visa program, introduced in 2013, grants residency or citizenship in exchange for investments in real estate, government bonds or other approved vehicles. The program has become increasingly popular with wealthy Indians seeking second homes in Europe, drawn by the benefits of rental income, access to healthcare and education, and the ability to set up businesses in the EU.
Before the new rules came into force, Indian investors targeted popular Greek islands like Paros, Crete and Santorini for their real estate purchases. Rental yields in Greece are typically between 3-5 percent annually, with property values increasing by 10 percent annually. Capital appreciation rates have nearly doubled post-Covid from 5 percent pre-pandemic, further boosting demand from Indian investors.
"Greece and Cyprus remain the top real estate choices for Indian investors, especially after countries like Portugal, Spain and Ireland discontinued their permanent residency programs," said Sachdev. Cyprus offers a similar investment entry point at €300,000 but recent changes restrict the residency program to two generations, excluding parents or grandparents.
Europe's Attractive Investment Landscape
Anil Rego, founder and fund manager, Right Horizons, said Indian investors are increasingly drawn to European countries for their affordable housing programs and favorable lifestyle. Countries such as Greece offer access to high-quality healthcare, education and a comfortable European lifestyle, with decent rental returns and moderate inflation.
Greece offers one of the most affordable residency programs in Europe, with popular cities like Athens, Thessaloniki, Mykonos, and Santorini. 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) looking for property abroad.
