kathimerini.gr
Greek Real Estate Investment to Drop Over 50% in First Half of 2024
The Hellenic Association of Anonymous Companies and Entrepreneurship (SAEE) predicts a greater than 50% drop in foreign investment in Greek real estate during the first half of 2024 due to the new, stricter "golden visa" program that increased the minimum investment to €800,000 for many areas.
- What is the projected impact of the revised "golden visa" program on foreign investment in Greek real estate in 2024?
- The Hellenic Association of Anonymous Companies and Entrepreneurship (SAEE) forecasts a significant decrease in foreign capital investment in the Greek real estate market this year, exceeding 50% in the first half. This is primarily due to stricter requirements in the "golden visa" program, increasing the minimum investment threshold to €800,000 for Attica, Thessaloniki, and islands with over 3,100 residents.
- How did the temporary extension of the old "golden visa" program rules affect investment in the first quarter of 2024?
- The stricter "golden visa" program significantly impacts foreign investment in Greek real estate. The first-quarter inflow dropped 31.4% to €356 million compared to €520 million in 2023. SAEE projects a further decrease, estimating €550-600 million in the first half of 2024 versus €1.15 billion during the same period in 2023, highlighting the program's effect on investment.
- What potential measures could mitigate the negative impact of the revised investment thresholds in the Greek "golden visa" program?
- While a two-month extension allowed some transactions under the previous, less stringent rules, the overall impact will be a substantial decrease in foreign investment in Greek real estate. The long-term effect depends on the implementation of a clarifying Joint Ministerial Decision (JMD) that could allow lower investment thresholds (€250,000) for properties resulting from use-change conversions, potentially mitigating the negative impact.
Cognitive Concepts
Framing Bias
The article frames the change in the Golden Visa program primarily as a negative development, focusing on the expected decrease in foreign investment. The headline (if there was one, which is not provided) would likely emphasize this negative impact. The introduction and structure of the article prioritize the negative consequences of the higher investment threshold. While the article presents some data about the previous success of the program, the overall tone and narrative emphasis lean towards presenting the changes as detrimental. This framing could easily shape reader interpretation towards a solely negative view of the new regulations without sufficiently representing the potential rationale behind them.
Language Bias
The language used is largely neutral and factual, presenting statistical data and quotations from the SAEE. However, phrases like "significant decline", "unfortunately", and "detrimental impact" subtly convey a negative sentiment towards the changes in the Golden Visa program. The article often uses strong verbs like "overcome", "restrict", and "plummet", reflecting a potential bias in the presentation. More neutral alternatives could include 'reduction', 'limitations' and 'decrease' respectively. While the article strives for objectivity through data presentation, the chosen language still subtly influences reader perception.
Bias by Omission
The analysis focuses heavily on the negative impacts of the changes to the Golden Visa program, potentially omitting positive aspects or alternative perspectives on the changes. It does not explore the reasons behind the changes to the program or potential benefits of the higher investment thresholds, such as preventing property speculation or ensuring higher-quality investments. The article also omits any discussion on the broader economic effects of foreign investment in Greek real estate beyond immediate investment numbers. This omission limits the reader's ability to form a fully informed conclusion about the overall impact of the changes.
False Dichotomy
The article presents a somewhat simplistic eitheor scenario: either the Golden Visa program remains as it was with higher investment, leading to decreased foreign investment, or the program changes again allowing for lower investment thresholds, thus potentially leading to increased foreign investment. It does not consider other potential factors or solutions that could moderate the impact of the changes on foreign investment. The narrative does not explore the possibility of alternative policy adjustments that could balance the goals of attracting foreign investment while mitigating potential downsides.
Sustainable Development Goals
The significant decrease in foreign capital invested in the Greek real estate market due to stricter regulations negatively impacts economic growth and potentially employment in related sectors. The reduction in investment from 1.15 billion euros in the first half of 2024 to an estimated 550-600 million euros demonstrates a considerable downturn.