The increase in interest rates may have raised concerns for many; however, it has had a positive impact on the Greek real estate market, as there has been a recent surge in demand for vacation homes from foreign investors.

Lower selling prices compared to other European countries make Greece an ideal destination for foreign buyers of vacation homes, according to an analysis conducted by a Greek company based in the Netherlands specializing in the sale of holiday properties in Greece. The fact that the average selling price of a new vacation home in Greece is around 300,000 – 350,000 euros makes it attractive to European investors. This affordability allows them to avoid taking out a housing loan to acquire a property.

“After the increase in interest rates, we see that among our clients, the desire for bank loans has frozen in the context of acquiring a vacation home. This happens because the loan interest, ranging from 4% to 5%, essentially nullifies the return that an investor can have from operating the purchased vacation home,” notes the CEO.

According to him, this trend means that investors from Western and Northern European countries, such as Germany, the Netherlands, Belgium, France, the United Kingdom, Austria, and Switzerland, now prefer to use exclusively their savings to acquire a vacation home abroad, specifically in Greece.

This approach ensures fourfold benefits, as outlined in its analysis:

Protection of their capital from inflation.
Satisfactory returns from operating the invested property.
Combining income from operation and personal use.
Excellent prospects for the future appreciation of their property in case they wish to sell it after 5-10 years.

“There is great value in Greece’s vacation homes, as with a relatively low amount compared to other markets, one can acquire a home near the sea or with a sea view, a pool, and all the amenities,” points out.

He adds that, according to estimates based on relevant surveys, at present, there are approximately 3 million citizens from Western Europe considering investing a capital of around 300,000 – 350,000 euros for operation and personal use.

As a result, the Greek market is evolving into a particularly “hot” one among foreigners, which is reflected in the preferences of tourists and, certainly, works in favor of the vacation home market. The combination of the offered advantages is such that more and more investors are choosing it. “The market has also clearly changed in recent years from a buyer’s market to a seller’s market, especially for new residences. While 10 years ago, we saw buyers choosing properties, now, for some projects, we have a waiting list of interested parties waiting for the next project to be announced,” concludes.

NEWSPAPER ARTICLE December 2023

Real Estate Prices Considered an Investment Opportunity

There is substantial value in Greek vacation homes, where, with a relatively modest amount compared to other markets, one can acquire a home near or with a view of the sea, complete with a pool and all amenities. Currently, an estimated three million citizens from Western Europe are contemplating investing for both utilization and personal use.

Preferred Regions – Reasons for the Prosperity of the Vacation Home Market

Aside from the perennially favored Greek islands, the Athenian Riviera is experiencing an upward trajectory in demand, as revealed by converging estimates and research results gaining publicity. The demand for vacation home purchases is also on the rise among the Greek diaspora. According to recent research, over 1 in 10 vacation homes (12.3%) in Greece were acquired this year by diaspora members, primarily from the United States, Canada, and Germany. The driving force behind these purchases by Greek diaspora members is the fact that the Greek housing market is on a path of recovery and value appreciation. Simultaneously, it offers quality properties at competitive prices, especially when compared to the countries where diaspora members permanently reside. The regions of interest for diaspora members are mainly Crete, Halkidiki, Lefkada and Zakynthos.

The luxury real estate market in Greece, as highlighted, has undergone significant changes in recent years. Remarkable sales completed in Athens, Santorini, and Mykonos in recent years are just the beginning. Current prices for trophy assets in Greece are only a fraction of those recorded in Southern France, Italy, or even Spain. Prices remain relatively stable for luxury homes in the country’s prime locations, ranging from 6,000 to 12,000 euros per square meter, while unique properties have already reached 20,000 euros per square meter and, in some cases, even higher.

According to a study, Corfu remains at the top of preferences, but for the first time, the Athenian Riviera has surpassed Mykonos in demand, registering a 25.8% increase in demand requests for home purchases. The top five are rounded out by the Santorini and Paros, followed by Lefkada, Crete, Zakynthos and Rhodes.