Study Links ‘Golden Visa’ to Greece’s Housing Crisis – Businesses Disagree

• 6 August, 25

A new academic study by the Athens University of Economics and Business (AUEB) has reignited debate over Greece’s Golden Visa program, suggesting that foreign investor demand is contributing to the country’s housing affordability challenges.

Business groups, however, are pushing back, defending the program as a key driver of development and economic growth.

According to the study, rising interest from non-EU investors — particularly in prime areas like Athens, Thessaloniki and the Greek islands — has fueled luxury construction at the expense of affordable rental housing.

The report highlights that developers are increasingly targeting Golden Visa buyers, reducing the availability of budget-friendly units for locals.

It estimates that 10.77 percent of real estate transactions between 2023 and 2024 were linked to Golden Visa investments, which have totaled 5.54 billion euros since the program’s inception.

The report also suggests that many properties acquired through the Golden Visa are either rented at premium prices or converted into short-term rentals, further tightening supply in key urban markets.

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

In response, the Real Estate Committee of the Association of Public Limited Companies and Entrepreneurship (SAEE) issued a strong rebuttal.

It argues that the housing crisis stems primarily from domestic issues: years of low construction activity, lack of coordinated housing policy, overtaxation, and a surge in short-term rentals that absorbed up to 200,000 homes in Attica alone. The association points to a Piraeus Bank study that found no direct link between the Golden Visa and the housing crisis.

“Golden Visa investors are revitalizing off-market properties — abandoned buildings, industrial spaces, and commercial units — many of which are now being added to the housing stock,” SAEE noted. It also cited data showing that 94 percent of Golden Visa-acquired properties are made available for long-term rentals following recent legal changes.

The program has so far attracted over 8.5 billion euros in investment and supported more than 100,000 jobs, according to the association. However, it also warned of a steep drop in foreign real estate investment — down 31.4 percent in Q1 2025 — and called for regulatory clarity to prevent further declines.

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

The AUEB study’s criticism of the Golden Visa appears in a broader context. Titled “The Economic and Housing Impact of Short-Term Rentals in Greece”, the report primarily argues that Greece’s housing crisis is driven less by short-term rentals and more by the staggering number of vacant homes across the country — especially in Attica and popular islands. While foreign investment and Golden Visa activity are cited as contributing factors, the researchers highlight that no single element can fully explain the rise in housing costs.

The Association of Public Limited Companies and Entrepreneurship (SAEE) is a Greek business body that promotes economic policy and operates through specialized committees, including one focused on real estate.

Cre: news.gtp.gr