Two days before Christmas 2022, a group of Chinese diplomats and airport officials gathered at Athens International Airport to welcome the first aircraft from China after the Corona shutdown. Today, Air China flies not only from Beijing but also from Shanghai to Athens.
More and more real estate buyers are visiting the land of the gods. Since 2015, the Chinese logistics company Cosco has controlled the port of Piraeus, the second-largest container shipping site in the Mediterranean and an important hub of the Belt and Road Initiative, China’s New Silk Road. The company has been managing the two quays since 2008.
Piraeus sold to Cosco in 2016
In his book “Adults in the Room”, former Greek Finance Minister Yanis Varoufakis recalls his efforts to sell the third container terminal in Piraeus to Cosco during the state debt crisis in 2015. Through the Chinese ambassador in Athens, he formulated his offer as follows: “Greece has highly skilled labour, but wages have fallen by 40 percent. Why should companies like Foxconn (a multinational manufacturer of custom electronics from Taiwan) not be persuaded to build production and assembly facilities in a technology park that enjoys a special business tax regime in an area near Piraeus?” After all, the agreement with Cosco was not made by Varoufakis. It took place at the beginning of 2016 under conditions that, according to Varoufakis, are even more favourable for Cosco than what he had offered. At the moment, however, the Greek shipowners are among the best customers of Chinese shipyards and have chartered many of their container ships to Chinese shipping companies.
With the black Minibus for Sightseeing
More and more Chinese investors are buying real estate in Hellas. Not only because of the mild climate with 300 sunny days a year, the landscaped beauties, and the ancient sights. In particular, the Greek government’s “golden visa” attracts wealthy investors from third countries. Anyone who invests at least 250,000 euros in a property gets the desired residence permit. He is entitled to reside in Greece and can travel to the other 26 countries in the Schengen area. The visa is valid for five years and can be renewed. It is considered an entry into citizenship.
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A whole service industry has developed in Athens: travellers from China are picked up in black minibuses at the airport, accompanied by interpreters to the brokers, and driven to sightseeing the objects. Some real estate developers have specialised in renovating entire multi-family houses and selling them entirely to Chinese investors. Specialised law firms take over the settlement of the transactions.
The choice of Chinese interests falls mainly on objects close to the sea. For example, the capital of Crete, Heraklion, has one of the highest growth rates in the country.
Luxury Real Estate: A Deal
According to the German newspaper Handelsblatt, since the start of the visa programme in 2013, Greece has issued a total of 26,913 Golden visas to third-country nationals. Of this, 17,219 went to Chinese investors and their families, representing a 64% share. Turks follow with 6.4%, Russians with 4.3%, and Lebanese with 4.1% of visas issued.
However, the Golden Visa is now becoming more expensive, at least in some areas that are in demand. Instead of 250,000 euros, investors have been required to invest at least 500,000 euros since the beginning of this year in the centre of Athens and in the southern coastal suburbs of the capital, in Thessaloniki in northern Greece, as well as on the islands of Mykonos and Santorini.
Market observers therefore do not expect a decline in interest. Compared to prices in Shanghai and Beijing, even luxury properties in Greece are still a bargain.
