Image Source : Guide Consultant
A recent report has shed light on the impact of Golden Visa programs on the housing market, revealing that beneficiaries are competing with locals for affordable properties. The scheme, designed to attract foreign investment, has drawn 2,500 applicants, but surprisingly, only 67 opted to buy properties. Instead, the vast majority chose to rent, further fueling concerns about the program’s effects on housing affordability.
The report highlights that Golden Visa recipients are seeking relatively affordable accommodations, with many competing for properties priced around €1,000 per month. This trend has resulted in increased demand, driving up rents and making it challenging for locals to secure housing. The phenomenon is particularly concerning in areas with already strained housing markets.
Experts argue that the Golden Visa program’s emphasis on rental investments has contributed to the issue. By allowing beneficiaries to rent rather than buy properties, the scheme inadvertently fuels demand for existing housing stock, rather than stimulating new construction. This dynamic exacerbates housing shortages, pricing out locals and potentially displacing long-term residents.
As policymakers reassess the program’s implications, concerns about housing affordability, gentrification, and social cohesion come to the forefront. The report’s findings underscore the need for adjustments to ensure that Golden Visa programs benefit both foreign investors and local communities, rather than perpetuating housing market imbalances.
