Real Estate: Πτώση-σοκ 90% στη Golden Visa! Γιατί καταρρέει η ζήτηση και πώς αλλάζει η αγορά

Summary

This interview delves into Greece's ongoing housing crisis, highlighting a sharp rise in rent prices, which have surged by 50% in Athens from 2019 to 2024. Real estate expert Giannis Revithis critiques high property taxes and vacant properties, calling for tax reductions for small landlords to ease the rental market. The Golden Visa program has seen a 90% drop in interest due to rising prices, though demand for luxury properties remains strong, particularly in the Athens Riviera. Revithis suggests that government intervention is crucial to resolve these challenges and stimulate housing market growth.

Takeaways

• 📈 Rents in Athens have increased by about 50% between 2019 and 2024, far outpacing other major European capitals such as Madrid and Paris.
• 🏠 The sharp rise in rents combined with relatively low incomes is delaying young people’s financial independence, forcing many to live with parents, siblings, or roommates.
• 🌍 The housing affordability problem is not unique to Greece but part of a broader pan-European trend driven by rising property prices and stagnant or declining incomes.
• 💸 High taxation on rental income in Greece—reaching up to 45%—is seen as a major factor discouraging property owners from renting out homes.
• 📉 A key proposal to ease the rental crisis is to eliminate rental income tax for owners with one or two small properties and cap taxation for large owners at corporate tax levels.
• 🚪 Greece has a very large number of vacant homes, estimated at over 300,000, which significantly reduces available housing supply.
• 🏦 A substantial share of closed properties is held by servicers, banks, institutions, and the Church, many of which are not releasing properties to the rental market.
• ⚖️ Government intervention is suggested to force large institutional owners and servicers to put idle properties on the market to increase supply and reduce rents.
• 🏙️ Demand for housing is heavily concentrated in Athens and Thessaloniki due to ongoing urbanization and lack of strong economic incentives in the regions.
• 💼 The Golden Visa program has seen an estimated 90% decline in interest after minimum investment thresholds were sharply increased, driving foreign investors to other countries.
• 🏨 While Golden Visa-related demand has fallen, large-scale investors remain highly active, particularly in hotels, resorts, and tourism-related real estate across Greece.
• 💎 Luxury real estate demand, especially along the Athenian Riviera and in northern suburbs, remains strong, but prices are high and increasingly accessible only to wealthy buyers.

Q & A

What is the main topic discussed in the Real Estate TV show episode?

The main topic discussed is the current housing crisis in Greece, particularly focusing on rising rents and the challenges young people face in affording housing. The episode also touches on property taxes, the Golden Visa program, and the real estate market dynamics in Athens and other regions.

How much have rents increased in Athens according to the latest Reuters report?

According to Reuters, rents in Athens have increased by 50% from 2019 to 2024, compared to 26% in Madrid and 14% in Paris.

What impact has the rising cost of housing had on young people in Greece?

Young people are struggling financially, with many delaying economic maturity. They are unable to afford housing on their own, leading some to live with family or friends due to high rental costs and limited income.

What is the proposed solution to address the housing affordability issue in Greece?

One proposed solution is to reduce property taxes, particularly for owners with one or two small rental properties. This would help make housing more affordable for young people and create a more accessible rental market.

Why are so many properties in Greece left vacant, according to the Alpha Bank report?

Alpha Bank's report identifies over 300,000 vacant properties in Greece. Many of these properties are owned by institutions, churches, or services (companies managing assets of banks), and are not being rented out due to high taxes, fear of bad tenants, or the desire to sell them at higher prices through auctions.

What role do services (companies managing bank assets) play in the housing market in Greece?

Services hold a significant portion of vacant properties, primarily obtained during the Greek financial crisis when they acquired bank assets. These properties are not being put on the market due to minor legal issues, strategic holding for auctions, or a reluctance to rent them out.

What is the government’s stance on the large number of vacant properties?

The government has been urged to implement laws that force institutions, churches, and services to release these vacant properties into the market. This would help increase supply and ease the housing crisis.

How has the Golden Visa program affected the real estate market in Greece?

The Golden Visa program, which allowed foreign investors to acquire Greek residency through property purchases, initially brought significant investment to the real estate sector. However, interest in the program has drastically declined by 90% due to changes in its requirements, including a steep increase in the minimum investment amount.

What changes have been observed in the demand for luxury real estate in Greece?

Demand for luxury properties, particularly in the Athenian Riviera, remains strong, though it has slowed somewhat due to rising construction costs. The interest is mostly from high-net-worth individuals, including Greeks and foreigners, seeking either personal residences or investment opportunities.

What are the average property prices in the Athenian Riviera and how do they compare to other areas?

Property prices in the Athenian Riviera start at approximately €5,000 per square meter and can reach as high as €12,000 to €15,000 per square meter for properties with sea views. In comparison, prices in northern suburbs like Kifisia or Psychiko are lower, starting at €4,000 per square meter but can rise up to €10,000 for prime locations.