July 15, 2024

Athens News

News in English from Greece

Prices for once expensive chalets have fallen by 56%


How prices for tourist real estate in Arachova, Agios Athanasios (Pella), Karpenisi and Trikala (Corinthia) have changed today, experts told.

If in Mykonos the average price of luxury housing today has reached 10,000 euros per sq.m., i.e. 166% higher than the previous maximum in 2008 (3,750 euros/sq.m.), then in Arachova, or “winter Mykonos,” housing prices from 3,000 euros in 2008 today barely reach 1,600 euros per sq.m. That is, a drop of 47% was recorded.

Compared to 2008, new research from certified appraisers Geoaxis shows that there has been a very large horizontal decline in asking prices for winter holiday homes in popular areas – in Arakhov, Ag. Athanasios (Pella), Karpenisi and Trikale (Corinthia), reaching an average of 56%.

In particular, the largest decrease was noted in Agios Athanasios, where from 3301 euros per sq.m. in 2008, the cost today fluctuates around 1053 euros per sq.m. (-68%). It is followed by Karpenisi, with 2308 euros per sq.m. in 2008, today prices have dropped to 1008 euros per sq.m. (-56%). In Trikala (Corinthia) prices start from 2250 euros per sq.m. in 2008, today they have fallen to 1097 euros per sq.m. (-51%). And finally in Arachova, from 3000 euros per sq.m. in 2008, today the average price is 1594 euros per sq.m. (-47%).

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Research shows significant reduction in asking prices for winter holiday homes. It is typical that if Nationwide urban housing prices rose an average of 11.9% in the third quarter of 2023 compared to the corresponding quarter of 2022 (data from the Bank of Greece), then asking prices for winter houses for holidays in Arachova in Boeotia and Karpenisi in Evrytania, increases of only 2.31% and 1.61% were recorded respectively. In contrast, in Agios Athanasios Pella and Trikala Korinthia, sales prices remained unchanged.

More details, in Arachova from 1558 euros per sq.m. in 2022 the asking price is now 1,594 euros per sq.m. (+2.31%), in Agios Athanasios Pella from 1050 euros per sq.m. in 2022, today it is 1053 euros per sq.m. (+0.29%), in Karpenisi from 992 euros per sq.m. in 2022 the price was 1008 euros per sq.m. (+1.61%) and in Trikala Corinthia from 1095 euros per sq.m., in 2022 it amounted to 1097 euros per sq.m. (+0.18%).

“Extremely A positive summer season combined with high occupancy during the holidays this year has not led to a trend in the sale of winter holiday homes, which has affected their value. The lack of a long winter, high loan rates and significant construction and energy costs are having a negative impact on this particular market,” notes Mr. Yiannis Xylas, Founder and CEO of Geoaxis.

The table shows the dynamics of sales prices of houses for winter holidays.

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Fixed prices in 2024.
However, next year the situation will not change for the better. This is due to the fact that the reduction in demand is due to a number of factorssuch as rising lending rates, skyrocketing energy prices and rising prices for construction/repair materials and wages, coupled with the continuation of the war in Ukraine and Israel.

Thus, the expectation of lower prices will inevitably force potential buyers to “suspend their ardor” and think a hundred times whether it is worth investing in Greek real estate in winter resorts.

Thousands of houses lie unclaimed
Despite a significant drop in prices, with the exception of a temporary increase in 2018/2019, thousands of homes remain unsold and Demand is still “extremely low”say analysts.

Average area of ​​a country house

Together with auxiliary premises, the area of ​​the chalet is 149 sq.m. The largest areas are recorded in Arachova (164 sq.m.) due to the abundance of new maisonettes in Livadi, and the smallest in Trikala Corinthia (130 sq.m.).

The average age of a holiday home (chalet type) is currently 19.5 years. The oldest are recorded in Trikala in Corinthia – 31 years, and the youngest – in Arachova – 14 years.

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With the uncertainty of the near future coupled with dwindling disposable income, most Greeks continue to view purchasing a winter holiday property as a completely off-the-cuff option.

In the long term, climate change will have a significant impact on housing construction in ski resort-dependent areas, as they see increasingly shorter workdays due to lack of snow.

It is noted that in Europe it is difficult to finance ski resorts located below 2500 meters, and the increase in energy costs for their operation creates even greater problems in the tourism real estate market.



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