Greek Holiday Home Market Making Comeback

Mykonos Island. Photo © Maria Theofanopoulou

The Greek market for holiday homes is picking up pace with going prices for properties on main island destinations increasing in the first half of year and breaking a decade-long standstill.

According to analysts, the steady growth of tourism combined with a more stable financial environment are key factors for the comeback with Geoaxis Property & Valuation Services estimating a 0.1 percent annual rise in average asking prices. Experts add that the positive trend could have been even stronger but a considerable number of unsold villas – estimated at 30,000-40,000 – has hindered upward price trends.

Mykonos. Photo © Maria Theofanopoulou

According to Geoaxis appraisers, holiday homes on the island of Mykonos have marked the largest increase at 0.4 percent, going for an average 2,150 euros per square meter. Properties on Santorini recorded 0.15 percent rise with prices reaching 1,775 euros per square meter on average, followed by Paros at 1,770 euros per square meter.

“The stabilization of holiday housing market values is expected to continue throughout 2018, but only if accompanied by a normalization of property supply, liquidity and taxation,” explains Geoaxis founder and owner Ioannis Xylas.

Xylas goes on to add that Mykonos remains a top selling location.

In the meantime, the holiday home market is being primarily driven by foreign buyers who are interested mostly in luxury villas and unique locations, analysts say.

In relevant news, French daily Le Monde notes that low prices for properties in Greece are attracting the interest of foreign buyers. Indicatively the report refers to the possibility of acquiring a beachfront home in the Cyclades for as little as 150,000 euros as long as investors can stomach the tedious bureaucratic hurdles.

Chania, Crete

Some of the locations mentioned include Crete, where real estate agents say one can purchase a three-room house with a pool by the sea for 200,000 euros.

The report cites the country’s golden visa scheme as a key incentive to buy property in Greece. Besides offering instant Schengen Zone access, the golden visa program grants a five-year residence permit renewable for third country nationals who purchase individually or through a legal entity property in Greece valued at a minimum of 250,000 euros, or who have taken out a minimum 10-year lease in hotel accommodation or tourism facilities.