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Feature: Greece seeking takers for "real estate for visa" program

Xinhua, April 1, 2015 Adjust font size:

Investors can explore opportunities in Greece's "real estate for visa" program, despite the country's financial challenges of recent months and other obstacles, Greek officials and real estate agents have said.

Debt-laden Greece inaugurated in May 2013 the procedure to obtain residence permits, which can be renewed every five years, for third-country citizens who own real estate projects with a value surpassing 250,000 euros (about 268,420 U.S. dollars).

For a country struggling since 2010 to keep afloat amidst an acute debt crisis the scheme is part of a wider campaign to attract much needed foreign private capital.

Beneficiaries of this scheme include third country citizens who have bought real estate property in Greece, or have signed a lease -- for a minimum of ten years -- for hotel accommodations or tourist residences in tourist resorts.

The so-called "golden visa" holders are able to travel freely -- but with no right to work -- within the Schengen area.

Compared to other similar programs across southern Europe, the price requirement for the Greek "real estate for visa" program is the lowest, according to Greek officials.

The severe six-year recession has had a major impact on Greece's real estate market. Property prices have declined by some 30 percent on average, according to data from the central Bank of Greece.

Foreign investors, in particular Russians, Chinese and Arabs, keep exploring opportunities, said Yannis Revithis, President of the Federation of Greece's Real Estate Agents.

More than 500 such visas have been issued over the past two years, according to the latest official figures from Invest in Greece and the Ministry of Interior.

Half of those visas were given to buyers of real estate projects in and around Athens. With 110 visas, Crete island was the second most popular destination for investors.

More than 185 such visas were given to Russians. The Russians were followed by Chinese, who obtained at least 119 such visas so far.

The Ministry of Development estimate the total revenues for the Greek market to be more than 200 million euros.

Real estate agents believe the extent of the investment was still small compared to similar program in Portugal.

According to Themis Bakas, head of the real estate network E-Real Estates, Greece lagged behind Portugal, which has issued more than 1,100 visas from 2012 and won 700 million euros in revenues.

Greece is still lacking large size luxurious housing complexes which are most attractive for potential foreign buyers, he said.

Another problem was that most foreign buyers focused on the most well publicized regions and missed opportunities in nearby zones. As a result they did not find what they are looking for and Greece was losing revenues, Bakas added.

Dimitris Papachristou, CEO of Build Up real estate firm, pointed to another lost opportunity for the country.

The previous Greek government was promoting a draft bill to upgrade the program and offer full citizenship to buyers after seven years. The new government has yet not revealed whether it plans to move ahead with the project or drop it, according to Papachristou. (1 euro = 1.07 U.S. dollars) Enditem