Rosalind Evans
Global real estate titan, Juwai IQI, based in Malaysia, predicts a significant increase in Chinese investment in the Greek housing market, according to a report released on Tuesday. This surge is attributed to Portugal’s decision to discontinue its Golden Visa program, which is anticipated to redirect Chinese investors to Greece.
Kashif Ansari, Juwai IQI’s Co-Founder and Group CEO, expressed, “With the termination of the Portuguese scheme, we expect applications for golden visas in Greece to surge by over 50%. The Greek program, inherently appealing, faces little competition and enjoys popularity among Chinese applicants. As Chinese citizens start to travel internationally again, we predict a surge in their participation rate. China currently represents 62% of all active Greek golden visas.”
The availability of top-tier Golden Visa programs offering residency in the Schengen Area of Europe is dwindling rapidly. The UK and Ireland have shut down their programs within 18 months. Portugal is on the brink of closing theirs, while Spain’s politicians have hinted at limiting or ending their own. This leaves Greece, Malta, and Latvia as the only remaining programs.
Recently, Greece has declared its intention to increase the minimum investment for a Golden Visa to €500,000. Over recent years, there has been a noticeable influx of non-European Union individuals seeking a Golden Visa in Greece. This has raised concerns about the impact on housing affordability for locals due to the high volume of foreign property buyers.
However, Juwai IQI believes the increased minimum investment will not deter Chinese investors. Ansari explained, “Chinese investors typically make substantial investments averaging €650,000, which suggests the new minimum investment will have little impact on many Chinese applicants.”
He added, “The raised minimum investment in cities like Athens, Thessaloniki, Vari, Mykonos, and Santorini could limit the opposition to the program by lessening its perceived impact on housing affordability in high-demand markets.”
Typically, Chinese buyers seek family homes for full or part-time occupations, often leasing them out for the remaining time. They prefer locations with convenient access to services, transportation, and quality international schools.
Juwai IQI notes a substantial latent demand for Greek properties among Chinese investors. However, more than border reopening is needed to transform this demand into actual transactions. Restoring flights between the two countries to near-2019 levels is crucial to facilitate Chinese buyers’ visits to Greece.
The company also points out that China’s sluggish domestic real estate market drives investors overseas. With the local market expected to remain stagnant for some time, this situation could fuel a new wave of Chinese overseas investment – albeit potentially more controlled than the 2014-2018 boom.
This trend of overseas investment is further stimulated by the long-standing appeal of Greece’s culture, history, and stunning landscapes, along with the perceived stability of the European real estate market.
Ansari stated, “Not only is Greece’s Golden Visa program appealing in its own right, but the opportunity to invest in a country with such rich history and natural beauty is a draw for many Chinese investors. Moreover, the perceived stability of the European property market presents a haven for their investments, especially during uncertain times.”
Nonetheless, several challenges may influence the volume of Chinese investment in the Greek real estate sector. The ongoing pandemic, travel restrictions, and the global economic climate could impact the anticipated surge in Chinese applications for Greek Golden Visas. In addition, the increase in minimum investment for the Greek Golden Visa may deter some investors, despite the overall prediction of continued strong interest from China.
Juwai IQI maintains that a comprehensive approach is needed to ensure the successful influx of Chinese investors into Greece’s real estate market. This includes re-establishing pre-pandemic flight frequencies, enhancing marketing strategies targeting potential investors, and supporting investors navigating the Golden Visa application process.
Consequently, Juwai IQI emphasizes that collaboration between Greece and China is crucial. By facilitating cultural understanding, improving communication, and streamlining bureaucratic procedures, both countries can benefit from this potential surge in investment.
Ansari concluded, “This could be a win-win situation for both nations. Chinese investors can gain from the stability and potential returns of Greek real estate, while Greece can benefit from the economic boost these foreign investments provide.”
The situation remains dynamic, with many factors that could influence the expected rise in Chinese investments in the Greek real estate sector. Stakeholders will closely monitor these developments, as they could have significant implications for the Greek and Chinese economies.
