A scheme operated with the aid of the Greek government that awards residency visas to non-EU residents – if they stump up €250,000 (AUD 396,000) as a property funding is transforming the housing marketplace in Athens – and now not in a great way for Athenians.
Echoing the massive expansion of Airbnb in cities like Barcelona, apartments are increasingly more being sold and converted into Airbnb houses, giving locals very little danger to buy or lease lengthy-time periods.
In current years, Athens’ belongings marketplace – decimated in the course of the crisis – has been on the upward push, with house fees increasing through 3.7 in step with a cent in 2018. With the outcomes of austerity nevertheless stalking the streets of the Greek capital, the first-rate positioned to invest in belongings are frequently foreigners trying to commercialize their investments in preference to stay in them.
A foremost part of the problem is the impact at the assets marketplace of the so-called ‘golden visas’ scheme operated using the Greek government, which allows non-EU citizens to shop for residency permits if they spend money on Greek assets. Aimed at increasing funding from overseas, critics say the scheme has few tests and balances, and native Greeks are losing out.
Lefteris Potamianos, president of the Athens Real Estate Association, advised Neos Kosmos that the situation created with the aid of golden visa holders turning properties into quick-time period traveler lodging is impossible to manipulate. “It affects neighborhood people and college students particularly, those who aren’t capable of discovering condo properties, due to the fact a large percent of the flats had been offered to be transformed into Airbnb homes.”
Potamianos says unscrupulous landlords have even resorted to terminating long-time period agreements with tenants with a purpose to clear the way for Airbnb clients. “As of now, there is no governmental directive to alter this new fashion. A committee has been appointed to set the primary layout, so as for the complete scenario to be ruled and contained to lawful obstacles…drastic measures are required for the state of affairs to be settled.”
Foreign consumers purchase properties mainly to gather the ‘golden visa’ and then have the added benefit of gaining profits thru Airbnb. While Greece lags in dealing with its golden visa scheme, Cyprus has taken the lead. The government ruling that all candidates need to have a Schengen visa and undergo thorough historical past assessments earlier than use it.
The Cyprus government has vowed to make sure that a proportion of the finances obtained via the naturalization of foreign investors could be used to create lower-priced homes for Cypriots.
Perth-born Nick Geronimos, founding father of Athens Backpackers and Studios in Koukaki installation his Athens commercial enterprise after moving to Greece in 2004. He has long warned of the impact of Airbnb on the housing market and licensed tourist accommodation operators.
“It is now close to impossible to rent invaluable Athens,” Geronimo advised Neos Kosmos.
“Most residences at the moment are advertised as brief-time period vacationer accommodation, and lots of tenants were pressured from their rentals at the stop in their lease, with landlords refusing to renew so that you can convert to Airbnb.”
“The knock-on effect is that rents have skyrocketed. Long-term tenants can not afford to be in important Athens.” While many EU countries, including having golden visa schemes, Greece seems to have the perfect monetary phrases for candidates, with investors being awarded a 5-year residency visa if they purchase assets to the price of €250,000 or extra.
Enterprise Greece – the Greek authorities are the investment and exchange arm – reportedly awarded nine,756 house allows to overseas traders in 2018 (as much as they give up in November). This is up from 6,205 in 2017 and three 695 in 2016. Chinese, Russian and Turkish were the maximum common nationalities awarded visas.
More than 1/2 of Greece’s properties leased brief-time period on structures along with Airbnb are run with the aid of management corporations, most of the people in Athens, in step with the latest record detailing Greek property developments in 2018.
The marketplace for belongings management offerings (take a look at-in, cleaning, check-out, advertising, marketing, and merchandising) has boomed in the latest years, pushed via the continuously increasing ‘domestic sharing fashion in Greece.