The year is 2024, but it is obvious that it is not as we imagined. We are now in a country where traveling abroad is already considered a luxury in line with the current economic conditions. In this case, one cannot help but question the country, people and government.
We are witnessing the visa process, which was not a serious problem until about 4 years ago, evolving into an interesting situation such as visa appointments being sold by third parties at high prices and rejection rates reaching up to 40 percent in some Schengen area countries.
In short, the process does not end with preparing our budget. Unfortunately, we are in a reality that we have never encountered in previous years.
Everyone is hearing surprising news about visa rejections around them. Let's briefly summarize the reasons for this; first, Turkish citizens break their own record in asylum applications every year. Turkey's frivolous attitude in investigating the background of the applicant in the citizenship it grants within the scope of the Golden Visa program and being one of the countries that grants passports the fastest, in addition to these, the decline in Turkey's gross national product from year to year are the main reasons. I made you sad, didn't I? Let's look at some statistics.
According to OECD data, Turkey ranks first in the world in terms of house price increases. Its closest competitors are Hungary, Russia and the Czech Republic. The illogical economic policy that the government has been implementing especially since 2020, the fundamental shaking of Turkish society by using the requirements of economic science as a guinea pig, and the fact that it has prioritized construction first, construction second and, yes, construction third since 2002 are the reasons for this illogical housing market.
So what did Turkish citizens who had the power to invest do? Of course, they did not buy a 3+1 house with an en suite bathroom in Esenyurt for the price of a detached house in Miami. They made a plan B and turned to real estate investments abroad to spread the risk in their investments. Who comes into play here? Me and Golden Visa…
What investors expect from Golden Visa is a residence card, work permit and citizenship. In my previous article, we covered Portugal. This time, let's look at Greece.
First of all, I believe it is very important to state this: There is a lot of misinformation in Golden Visa programs. The main reason for this is that it is a sector that attracts the attention of people who are only interested in real estate investments and have no immigration experience. Wrong investment causes you to make an investment that you cannot claim rights. I have encountered these cases many times both in Portugal and Turkey. I think we are not a country rich enough to invest 400 thousand euros in a program that does not meet our demands.
As for the Greece Golden Visa program, it is a residence card program. It is a country that Turkish citizens enjoy choosing due to both the proximity and cultural commonalities. We are the second country that has applied the most after China. This means that we are in first place according to the population ratio.
In this program, there is no minimum travel requirement within a calendar year, as in the past Portugal program. In the Portugal program, there was a 7-day travel requirement. But of course, this residence permit is a residence permit that is valid as long as you keep your real estate investment in Greece.
Thanks to the residence card provided, the applicant and the family members dependent on the application can access the residence card. In this sense, there is also an advantage for students who want to study at universities in Greece. However, there is a small misunderstanding here. The residence card grants you social rights in that country, but it does not grant the same social rights at universities in different Schengen areas.
We remember the famous economic crisis in Greece. After years of accumulation, the country went bankrupt, the leftist SYRIZA came to power and after ‘hit and miss’ talks with the EU’s de facto leader Angela Merkel, a rescue package was agreed upon. Athens will pay off these debts in full – if all goes well – in 2060. So how much do real estate prices reflect reality in a country with such an economy? Are there exorbitant prices in real estate sold under the Greek Golden Visa Program? Let’s take a look at this now.
My advice to investors is to travel to the city they want to invest in. With a little research, I came across 35 m2 dormitory rooms being sold for 250 thousand euros in the student city of Ioannina in Greece, and it should be clearly stated that the price per m2 is approximately 3 times the market value.
Until December 2022, investors were required to make a minimum investment of 250 thousand euros in any region of Greece. As of 2023, the lower limit required for investment in some regions has been increased from 250 thousand euros to 500 thousand euros. These regions include the capital cities of Athens and Thessaloniki, as well as the islands of Mykonos and Santorini. A new law is on the way, and as of August 2024, the new lower limit in Greece will be increased to 400 thousand euros, and the lower limits of 500 thousand euros will be increased to 800 thousand euros.
Portugal closed its real estate program at the end of last year. Then, there were discussions about closing the program in Spain. Now, Greece is increasing the lower limit of its program. There is a housing crisis in many parts of the world, especially in Turkey. Citizens cannot even find a house to live in their own country. Protests and actions are increasing every day. In Turkey, a country where street movements were mature, has been transformed into a country where the culture of action has disappeared in the last 20 years.
The issues that these countries complain about are all common: Not being able to afford the cost of a house to live in due to rising inflation, and the social obstacles to the integration process that comes with residence permits or citizenship processes.
I certainly do not think that Golden Visa programs will end completely, but I believe that the lower limits will become more stringent with each passing year and perhaps the real estate investment option will be removed completely.
We talked a little about Greece. I am your ambassador, Ayberk Özön.
