Recently, Investors, Buyers and Developers are Concerned with the Golden Visa Slowdown in 2025
Why Applications Dropped
Several interlocking policy and market reasons:
Higher Investment Thresholds As of Law 5100/2024, Greece significantly raised the minimum property investment needed for a Golden Visa in many areas:
End of the “Grace Period” and Pre‑Deadline Rush Before the stricter rules kicked in, many investors rushed purchases under the older, lower thresholds. Once those deadlines passed or became impractical, demand cooled off.
Limitation / Ban on Short‑Term Rentals Under the new rules, using Golden Visa properties for short‑term rentals (e.g. Airbnb) is banned. This removes one key incentive for many buyers, especially those purchasing with rental yield expectations.
Larger, More Exclusive Investments Required Not only higher amounts of money, but also stricter rules on property size (e.g. minimum 120 m² in standard property routes), single‑property rules, property use etc. These all raise the bar materially.
“Applicant Fatigue” / Market Saturation After some years of very strong growth (especially 2023‑2024), with large volumes of applications and many properties bought by foreign investors, there may also be a “cooling off” as those who were most motivated have already acted. Some regions may feel overbought.
Is This Good or Bad for New Applicants?
It depends on your perspective and budget. Some pros and cons:
Positives:
- Less competition in many areas, especially outside the prime zones. If you’re willing to invest at the new thresholds or explore restored / converted properties, there may be more choice and less urgency.
- Better-quality properties: Developers and sellers who still want Golden Visa buyers may focus more on quality, size, legal compliance, renovations, since the bar is higher.
- More predictable rules: After the reforms settle, the regime may be more stable, which reduces risk (e.g. fewer surprise changes or cutoff thresholds).
Challenges:
- Cost is much higher: If you want prime zones like Athens or popular islands, be ready for €800,000+. For many smaller properties or secondary areas the €400,000 threshold might still apply, but you’ll need to check whether the rules suit your desired location.
- Fewer options in lower‑cost segments: The old €250,000 route has become rare and restricted. So if that was within your earlier budget, many previous opportunities are no longer available.
- Less flexibility for short‑term rental income, use of property, combinations of smaller units etc. Many of the loopholes or more lenient rules have been tightened.
Effects on the Greek Real Estate Market
The drop in Golden Visa applications influences the real estate market in multiple ways:
Positive effects:
- Cooling of overheated zones: Some prime urban and island areas saw very rapid rises in prices (partly driven by foreign buyer demand). A reduction in Golden Visa‑driven speculative buying may slow or moderate price growth, making it more affordable for locals or domestic buyers.
- Shifting demand to secondary areas: The higher thresholds force more foreign investors to look outside the most expensive zones. That could benefit cities or regions that have been less in demand so far.
- More renovation / conversion work: Since the lower €250,000 threshold now mostly applies to restoration or conversion of non‑residential buildings or listed buildings, there could be more investment in those kinds of properties, which can improve urban fabric, revive underused areas.
Negative / risk factors:
- Slower inflow of foreign capital: Real estate sales under Golden Visa have been a source of investment. A drop means less capital coming in, possibly slowing construction, development, and related industries.
- Potential for property inventory surpluses in some categories (luxury, prime) if too many projects were built anticipating Golden Visa demand. If demand falls, such properties may stay on the market longer or see price pressure.
- Reduced incentive for speculative investment, which for some regions or developers was a big driver of demand.
Overall, this is good news for buyers. With less competition and clearer rules, investors now have more time to choose wisely and negotiate better deals. But for developers, it’s time to step up — to offer more value, better quality, and full transparency.
Developers need to do more to make their properties stand out — and buyers deserve clarity, not confusion.
Let LIMAR HOMES be that developer for you — open, transparent, and committed to excellence.