Digital Nomads Cause Local Housing Crisis In Greece

An influx of digital nomads and wealthy foreign investors is spurring a housing crisis in Athens.

What’s going on:

Greece is experiencing a surge in tourism, and an influx of digital nomads — particularly in Athens and popular Greek islands such as Crete and Corfu, according to Turkish news agency Anadolu Ajansi. The rise in tourism and the influx of digital nomads have had significant impacts on the real estate market in Greece.

The housing crisis in Athens, Greece has been intensified by a combination of negative factors, including the 2009 economic crisis and the COVID-19 pandemic. Many landlords in Greece have increased rents to compensate for losses experienced during the Greek economic crisis, banks have raised the downpayment requirement for mortgages to 25-30% of a property’s value, and there has been a boom in short-term rentals — all of which has driven up prices according to Balkan Insight.

Why it matters:

Greece’s Golden Visa program — which offers residency by investment — has helped boost housing market prices by drawing in foreign investment. These investments have been contributing to the rapid rise in property values in Greece. Reportedly, locals are being displaced from central city neighborhoods in Athens. Experts warn that if the current trends continue unchecked, Athens risks losing its attractiveness in the long term.

Rental prices in Greece are expected to be significantly affected by the tax breaks for digital nomads and self-employed individuals.

How it’ll impact the future:

For digital nomads, this situation presents both opportunities and challenges. While Greece offers attractive tax incentives and a low cost of living for a European capital, the rising property prices and housing crisis may make it more difficult for digital nomads to find affordable accommodation in the most popular areas.