Challenges in the Greek affordable housing market.
Golden Visa Not The Source Of Housing Price Surge
Paradias also addressed the Golden Visa program, noting that 90% of participating investors choose to purchase housing units rather than other types of property. Yet he stressed that despite the issuance of 20000 Golden Visas in the past decade,
“not a single new apartment”
was constructed as a result.
He argued that the rise in housing prices is not linked to the Golden Visa scheme but rather to the absence of construction activity over the past 10 years.
“Old properties were bought and renovated,”
he stated, adding that
“Golden Visa is not the cause of the housing shortage but the fact that we had no construction activity for a decade.”
Referencing a historical remark by Konstantinos Karamanlis from 1960,
“Urban planning for reconstruction and not reconstruction for urban planning,”
Paradias noted that Greece followed the opposite path, reflected in its minimal building activity.
Golden Visa program and investment dynamics.
Potential Pathways To Recovery
Paradias outlined multiple proposals aimed at alleviating the country’s housing challenges. These included:
Removing the 40% coverage cap in urban areas to allow building extensions and additional floors.
Utilizing vacant buildings with incentives for property owners.
Allowing changes of use for existing buildings.
Providing incentives for new residential construction.
Liberalizing out of plan construction.
Accelerating mortgage loan approvals.
Introducing insurance coverage for unpaid rent and property damage.
He warned that thousands of properties are moving toward auction and stressed that property prices depend on construction costs, quality, availability, household income levels and borrowing costs. These, he said, are the decisive factors shaping housing markets.
Paradias expressed confidence that progress in urban planning and the implementation of digital building IDs will eventually bring clarity and structure to Greece’s real estate sector.
He concluded with a pointed remark:
“The state must treat this issue with much greater seriousness because it is of utmost importance for the country.”
