Greek Villas: 3 million investors are looking for real estate in Greece - Why foreigners "vote" Greece

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

Ηoliday homes: Up to 3 million Europeans want to buy in Greece, where prices fluctuate

Corfu remains once again at the top of preferences - Big rise for the Athenian Riviera - Santorini and Paros complete the top five, followed by Lefkada, Crete, and Rhodes

Greece is emerging as a magnet for European capital in the vacation home market, according to ongoing research and analyses that continue to come to light. Specifically, according to estimates the Greek vacation home market is turning into an “El Dorado” for up to 3 million prospective European buyers.

Surprisingly, the increase in interest rates has positively impacted demand in recent months, attributed to the lower selling prices prevailing in our country compared to other European markets. Consequently, foreigners can avoid taking out a housing loan in their home country to acquire a vacation home in Greece, opting instead to finance the purchase with their own funds, whether from savings or other sources.

Following the rise in interest rates, there is a noticeable decline in the desire for bank loans within the context of acquiring a vacation home. This occurs because the loan interest, ranging from 4% to 5%, essentially erodes the returns an investor could have from operating the purchased vacation home”. 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: protection of their capital from inflation, satisfactory returns from operating the invested property, combining income from operation and personal use, as well as excellent prospects for the future appreciation of their property in case they wish to sell it after 5-10 years.

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.

Crucial Role of Infrastructure Investments in Boosting Real Estate Demand in the Athenian Riviera

The surge in demand for modern international-standard properties in the Athenian Riviera, as reported by international media, is significantly attributed to infrastructure projects and substantial investments undertaken within the framework of regional developments in the municipalities. Focused on major redevelopment projects in the growing area of Elliniko by Lamda Development, it’s noteworthy that the initial properties announced in the coastal zone of Elliniko have been sold out for months, surpassing initial expectations for such high demand.

Investments’ Decisive Role

Both the public and private sectors have invested significant amounts in vital infrastructure such as ports, highways, and airports, contributing decisively not only to the real estate market’s growth but also to the tourism industry and various sectors of the economy. Private infrastructure has developed significantly in recent years and continues to grow rapidly in popular destinations as well as destinations with moderate visitation. The investments from Greek and foreign entrepreneurs have propelled the country’s overall tourism product, creating numerous job opportunities. They have also stimulated the growth of other sectors, including construction, digital technologies, and general supplies, opening up a new developmental cycle.

NEWSPAPER ARTICLE December 2023