The footprint of the Russians in the Greek real estate market

of Eleni Botas

The footprint of Russian investors in the domestic Golden Visa program from the beginning of the program until today is small.

According to the data, since the implementation of the program (in 2013) until today, only 599 residence permits have been issued to Russian investors – buyers of real estate, when the corresponding number for Chinese investors amounts to 6,391 permits.

According to the data of the Pan-Hellenic Network E-Real Estates, the above contribution of Russian investors is small and therefore one can not claim that after their exclusion from the program as a measure of sanctions for the Russian invasion of Ukraine, it will be a “blow “for the Golden Visa part.

It should be noted that the footprint of Russian investors in the domestic real estate market is mainly limited to high quality properties in popular tourist destinations (Mykonos, Santorini, Rhodes), in the Southern Suburbs of Attica, as well as for holiday homes in Halkidiki and Cretan. in relation to other foreign investors.

Therefore, as noted, the Russian investment interest in the domestic real estate market can not be compared with that of the Chinese and Israelis.

The latter in particular may not be key investors in the golden visa program, but they are key investors in the domestic real estate market for both stand-alone buildings, either individual apartments for immediate renovation and resale, or exploitation through long-term leases.

On the contrary, the Russians have “shown” strong investment interest in the real estate sector in Cyprus and England. Specifically in the UK, since the introduction of the Tier 1 Investor visa program (2 2 million minimum investment amount) until the end of March 2020, it has issued 2,581 visas to Russian citizens.

As the head of E-Real Estates Themis Bakas points out, “Russian investors may have been excluded from the golden visa program, but let us not forget that the Russian response to the sanctions may not come” directly “from them but from friendly adjacent countries such as the People’s Republic of China.

In case of a possible “demand” of the Russians as countermeasures, for non-investment of Chinese funds in the Greek economy, it can be a big “blow” to the domestic golden visa program which is directly dependent according to the data from the Chinese capitals, and finally to the Greek real estate market. .

It should be noted that Chinese capital, Chinese businessmen, to a large extent are directly “dependent” on the Government of the People’s Republic of China. “We want to believe that the above is an extreme scenario that will not succeed,” he said.

What the Golden Visa program has brought

The “golden visa” program has yielded more than 3 billion euros from real estate investments, from buyers who obtained a residence permit themselves and their families.

The impact of the “golden visa” program as the cheapest program in the EU, but also the returns of the Greek real estate market in general, launched the investments from abroad.

According to the relevant data of the Bank of Greece, foreign direct investment in the real estate market in 2021 reached 1 billion euros, compared to 875 million euros in 2020 and 1.45 billion euros in 2019.

It is recalled that 2018 was a milestone year for foreign investment in the real estate market, as the relevant amount increased by 172% and amounted to 1.12 billion, from 414.7 million in 2017, when again it had almost doubled from 222.4 million in 2016.

The “golden visa” program with the acquisition of real estate with a minimum value of 250,000 euros depending on the investment opportunity, added to the domestic real estate market 1,035 real estate sales in 2021, 938 in 2020, 3,535 in 2019, 1,833 in 2018, 959 in 2017, 488 in 2016 , 421 in 2015, 338 in 2014 and 21 in 2013, which was the first year of implementation of the program.

If we add to this number the members of the families of the investors who were granted a residence permit, we reach a total of 28,773 residence permits.

According to the data obtained from the relevant tables of the Ministry of Immigration and Asylum, 66.44% (6,391) of investors who have received a residence permit with a minimum investment of 250,000 euros in real estate are Chinese citizens, while only 6.43 % (619 investors) of Turkish nationality occupying the 2nd place and 6.22% (599 investors) of Russian citizenship occupying the 3rd place.