Launched in mid-2014, Greece's Golden Visa program, designed to revive the economy and real estate market during a deep crisis, unexpectedly became the catalyst for a housing crisis and the subject of heated political debate a decade later. Initially conceived as a liquidity measure, it has now come under scrutiny as a "toxic" initiative. Critics claim the program distorted the market, inflating housing prices and depriving local residents of affordable housing. More importantly, it created inflated expectations for thousands of property owners regarding their property values.
However, a counterargument is that, during a deep recession and stagnant investment in new construction, the program stimulated construction activity. It injected at least €9 billion into the economy and, amid the collapse of mortgage lending, helped revive demand for housing. Real estate market participants emphasize that a significant portion of the proceeds from property sales to foreign investors was reinvested back into the market. These funds were used either to meet the personal needs of the sellers (moving to a more prestigious area, purchasing a larger home) or to acquire investment properties for income.
Currently, Greece, Cyprus, and Malta remain the only countries in Europe offering such programs, granting residence permits to third-country nationals who invest a certain amount in real estate. In Greece, interest has shifted toward residential construction, driven by changes in use: old office buildings or industrial sites are being converted into residential complexes. In such cases, apartments can obtain residence permits with a minimum investment of €250,000. Investors are prohibited from renting such properties out for short terms; only long-term rentals or use as personal residences are permitted.
In recent months, there has been a noticeable increase in the number of redevelopment projects transforming former industrial areas into modern residential complexes. A striking example is the transformation of Faliro and Piraeus, where the old factories of Keranis and Corona are being converted into new residential spaces. This process includes the construction of over 400 apartments on the site of the former Keranis factory and over 150 apartments on the site of the Korona factory. This approach not only creates new supply on the rental housing market but also stimulates the influx of foreign capital, strengthening the region's economic potential.