Greece is a magnet for European investors and funds in terms of buying holiday homes. Which areas are most in demand?

Greece is the pole of attraction for European capital for the purchase of country houses, according to the results of recent studies.

In particular, Elxis, a Greek company based in the Netherlands and specializing in the sale of holiday homes in Greece, estimates that the Greek market is becoming an “Eldorado” for 3 million potential European home buyers. According to the company, Increased interest rates, paradoxically, have had a positive impact on demand growth in recent months.

This development of events is due lower sales prices that prevail in our country compared to other European markets. So the foreigners can avoid getting a mortgage in their countryto purchase a holiday home in Greece, choosing to finance the purchase using your own capital, savings or other resources.

After increasing interest rates, it turned out that the desire to obtain bank loans for the purchase of a holiday home was frozen. This is because the loan interest rate of 4-5% essentially eliminates the profit an investor can make from operating the holiday home he buys, says Georgios Gavrielides, managing director of Elxis.

Investors from Western and Northern European countries, such as Germany, the Netherlands, Belgium, France, Great Britain, Austria and Switzerland, are now prefer to use only their savings to purchase a holiday home abroad, in particular in Greece.

In this way they provide quadruple benefit, say Elxis experts. In this way, financial assets are protected from inflation and a satisfactory income from the operation of the property in which they invest. They also combine operating and personal income with excellent prospects for future appreciation of their property if they wish to resell it in 5-10 years.

Selling price
The fact that in Greece the average sale price of a newly built holiday home is around 300,000-350,000 euros makes it ideal for European investors, something that more and more potential buyers are starting to take notice of. Holiday homes in Greece are of great value, since for a small amount of money compared to other markets you can buy a house close to or overlooking the sea, with a swimming pool and all the amenities, Mr. Gavrielides estimates.

According to estimates based on relevant surveys, approximately 3 million citizens of Western Europe are currently thinking about investing a capital of approximately 300,000 – 350,000 euros for operation and personal use.

Areas preferred by investors
According to converging estimates and research results that have been published, in addition to the Greek islands, which foreigners have always preferred as buyers, there is also a “rise in interest” Athens Riviera.

At the same time, demand for the purchase of holiday homes by Greeks abroad is growing. In particular, according to a recent study by Elxis, more than 1 in 10 holiday homes (12.3%) in Greece this year were purchased by second or even third generation expatriates, mainly from the USA, Canada and Germany. The driving force behind the purchase of holiday homes by Greek expats is the fact that the Greek housing market is on a trajectory of recovery and rising values. At the same time, it offers quality real estate at competitive prices, especially compared to countries where expats live permanently. Areas of interest to expats are mainly Crete, Chalkidiki and the Ionian Sea.

The Greek luxury housing market, as noted by Savvas Savvaidis, president and CEO of Greece Sotheby’s International Realty, has changed significantly in recent years. Dizzying home sales deals completed in recent years in Athens, Porto Heli and Mykonos, – this is just the beginning. Current prices for “trophy assets” (“tidbits”) in Greece are only part of the prices recorded in the south of France, Italy or even Spain. Prices for luxury housing in the main locations of the country are relatively stable and range from 6,000 to 12,000 euros per sq.m., and for exclusive real estate they already reach 20,000 euros per sq.m. and in some cases even higher.

According to a study of Greece by Sotheby’s International Realty, the island of Corfu again remains in the top preferences, but the Athens Riviera overtook Mykonos in demand for the first time, recording an increase in applications for the purchase of housing by 25.8%. Athens city center and Paros round out the top five, followed by Lefkada, Crete, Kea, Tinos and Rhodes.

The determining factor in the growth of demand for real estate of modern international standards on the Athens Riviera, as reported in international media. It is characteristic that The first properties for sale in the coastal area of ​​Elliniko sold out within a few months, exceeding initial expectations of such high demand.

The Crucial Role of Investment
Both the public and private sectors have invested large sums in vital infrastructure such as ports, highways and airports, making a decisive contribution not only to the development of the real estate market, but also tourism in general and dozens of economic sectors. As Yiannis Antsaklis, financial director of KOSTOPULOS HORECA, a company supplying equipment for catering and tourism, noted at an informative event at CHENIA, private infrastructure has developed significantly in recent years and continues to develop at a rapid pace in popular destinations (and not only).

Investments by Greek and foreign businessmen have expanded and strengthened the tourism economy, creating many jobs, also helping to develop other industries such as construction, digital technology, logistics, etc.

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