Greece has announced an extension for Golden Visa investors, allowing them additional time to finalize real estate contracts, following recent changes to the program aimed at coping with the housing crisis.
Initially slated for finalization by December 31, 2024, investors who have made at least a 10% deposit on properties before August 31, 2024, will instead have until February 28, 2025, to complete their purchases. This extension is particularly significant as it provides flexibility for applicants to secure properties under the previous minimum investment thresholds, which ranged from €250,000 to €500,000, before new, elevated limits are enforced.
The decision to extend the timeline emerges from Greece’s broader strategy to attract foreign investment amid rising domestic property costs and the associated housing shortages. Greece's Golden Visa Program remains enticing for international investors, showcasing impressive initial application figures, with 12,577 submissions recorded just last month—representing a notable 12% increase from October 2023's 11,229 applications.
Leading the charge among applicants are individuals from China, Türkiye, Lebanon, the United Kingdom, and the United States, highlighting the global appeal of Greece as a real estate investment destination.
On another financial front, Eurobank has reported heavy losses amounting to 1.09 billion dollars from January to the end of September 2024. This figure marks nearly double the losses from the same period back in 2011. The bank's significant downturn can largely be attributed to operations executed to delete Greek debt as mandated by creditor agreements, which were necessary to secure continuous financial assistance.
The past few years have been arduous for Eurobank, which is set to merge with the National Bank of Greece, another key player within the financial sector. It has faced losses of approximately six billion euros due to past debt cancellation operations undertaken during 2012, when measures were first imposed by international creditors seeking to stabilize the Greek economy.
Despite Eurobank’s challenges, there is some financial optimism as the bank will now receive about 5.8 billion euros from European recapitalization funds, which have finally been unlocked following extensive negotiations.
Investors holding interests within the Greek banking sector are undoubtedly keeping a watchful eye on these developments. Stock performance on the Athens Stock Exchange has reflected the broader challenges within Greece's financial climate. Stocks were lower overall, led by declines across the banking and telecom sectors, with the Athens General Composite closing down by 0.25%.
Among the day’s few bright spots, shares of Premia AE rose by 6.68%, hitting 52-week highs, signaling pockets of resilience among certain sectors. Noteworthy is the reaction of consumers and enterprises alike to the shifting dynamics of the nation’s economic strategies, particularly reflecting on housing markets and banking stability.
A broader look at Greece’s pharmaceutical market indicates rising sales values alongside decreasing physical sales volumes. The first nine months of 2024 saw nearly a 2% rise in total sales value, reaching €4.72 billion, yet the volume of sold medicines has dipped by 1.6%. This paradox reflects buyers’ responsiveness to increases across varying pharmaceutical product categories, amplified by changes within the national healthcare framework.
Though sales values increased during this same period, manufacturers have struggled with producing savings as anticipated due to rising treatment patterns and drug substitution phenomena. Drugs for digestive issues and metabolic health have taken the lead, together accounting for more than 70% of the overall market, underscoring key healthcare priorities across Greece.
These financial movements come against the backdrop of anticipated price hikes and structural reforms within the pharmaceutical and banking sectors. While Greece positions itself to attract foreign investment and stabilize its economy, it faces systemic challenges. Calls for reforms, particularly within pharmaceuticals and banking—seeking heightened public trust and improved regulations—are more pressing than ever.
These developments—both positive and negative—will shape Greece's economic future as foreign investors weigh their options in the face of changing regulations and market dynamics.
