THESSALONIKI, GREECE. JULY 23, 2024

Editor’s Note: As of this writing, we are being inundated by last-minute applicants seeking to lock in the old, €250K Golden Visa pricing by getting a 10% deposit down before September 31st, 2024.

Most of these applicants are looking to invest in buy-to-let units, rather than second homes / residential apartments. And if this is the case for you, then there is no need to rush.

The new Golden Visa rules (see below) make provision for a €250K category: ANY qualifying property situated anywhere in Greece (including in central Athens and Thessaloniki) that is converted from commercial to residential will still be eligible under the new Golden Visa rules.

And whilst you won’t be able to rent out these units via short-term letting platforms like Airbnb, you can still look forward to stable long-term yields of up to 4-5% (more details below)…

What can you expect from the new €250K Greek Golden Visa Conversion Option going forward?

In the past week we’ve spoken with two leading Greek property developers about their plans for the new €250K Greek Golden Visa “Conversion Category”.

While the new pricing changes – as per Article 100 of Law 5038/2023 (amendments by Law 5100/2024: Investments in real estate (investor’s permanent residence permit – residence permit “Type B.5.”) have already come into effect,

Both property developers have confirmed that, while a couple of legislative clarifications are currently still pending, they are already buying up suitable commercial and industrial buildings with a view to turn these into serviced residential apartments for long lease.

With a view to take advantage of long-term rental demand and assure stable yields, their target properties are situated in established areas of Athens and Thessaloniki; not on the Greek islands.

Whilst their exact plans and the property units’ exact specification will be dependent on the finalized legal guidelines, the intention is to develop serviced apartments for longer-term tenants (and students, in particular).

These property developments would seek to meet the needs of young professionals, long-term remote workers, diplomatic staff, and those seeking quality accommodation and a convenient lifestyle in some of these cities’ most vibrant urban neighborhoods.

One such development in Athens will feature some 100 units – which is a large development, by Greek residential project standards, and which will feature modern amenities like an on-site gym, restaurant, business center and a state of the art coworking space.

The first of these title-deeded units are slated to be completed by July of 2026, and will be going on sale soon after the outstanding program guidelines have been finalized.

But the first eligible developments that will qualify under the new program rules have already been completed – right here in Thessaloniki…

As a single example:

One of our trusted development partners in Thessaloniki has converted an industrial complex right opposite the University of Thessaloniki into luxury student accommodation. The development comprises high-end studios boasting quality finishes and high-end, integrated appliances.

Given their location and size, these prime residential apartments are perfectly positioned to take advantage of the high, stable demand for student accommodation – right on the university’s doorstep.

Given that the average university degree takes 4 years to complete, investors can therefore expect stable tenancy and predictable yields.

Students also frequently opt to stay in this kind of accommodation once they graduate and start their first jobs or internships, thus further raising the average duration of tenancy for quality student accommodation.

Caveat Emptor: Greek building regulations differ from one property to the next. Some buildings don’t have any regulations, hence these can qualify for the new Greek Golden Visa Conversion Option once completed. In other instances, building usage conversion may not be allowed, in which case units in these buildings won’t be eligible under the new €250K Golden Visa category.

The Greek Golden Visa’s future looks bright…

Both of the developers we spoke with remain very bullish about the future of the Greek Golden Visa program, and believe that the €250K Conversion Golden Visa will become the go-to option for the majority of future applicants.

In addition, both firms offer an end-to-end management and rental solution, making this a completely passive, hands-free investment option for investors.

Whilst the expected yields on this type of property will be in the 3-5% range, depending on the exact location and specifications, urban Greek properties have been enjoying a capital appreciation of 12%+ in 2023.

Given that cities like Athens and Thessaloniki are experiencing a significant supply-side shortage, property investors in these cities can therefore expect decent capital appreciation in the short to medium term.

Get in touch now to find out more about the new Greek €250K Conversion Property Category.

Want to find out more about the available properties for sale in the 250K Conversion Category of the Greek Golden Visa?

Simply complete the below form and we’ll put you in touch with the relevant property developers today.