Investors are buying up rural real estate en masse

Greek real estate has begun to actively attract foreign buyers. The preference for higher-end properties is driving up prices, with buyers opting for luxury and high-end homes priced between €350,000 and €550,000, eligible for the Golden Visa program or for resale.

According to a new analysis, this is due to several reasons, in addition to the attractiveness of the Greek landscape and the beauty of the country for the foreign market. “One of the key reasons is that sales prices, even at the high level of €550,000, remain very competitive compared to other countries in the southern Mediterranean. Properties with a private pool, amenities and infrastructure, close to or overlooking the sea, cost more than 40% more in countries such as Italy and Spain.” – says Georgios Gavrielides, Head of Analytics at Elxis.

According to the company, another reason for the move to higher-priced properties is, of course, the fact that the vast majority of its clients buy “by design”.

Such purchases provide the buyer with a lower price, up to 15-20%, which in turn opens up the prospect of higher returns, as well as greater capital gains if the person wants to resell the property at a later date. Some buyers have already rushed to sell their holiday homes even a year after purchase due to high capital gains.

One of these steps was taken in May of this year. The Dutch owners of a villa in one of the residential complexes promoted by Elxis decided to sell their property for 325,000 euros, realizing a 47% increase in value compared to 2021, when the house was purchased. The only difference was that the property was sold with furniture, while it was purchased without it.

In the southern area of ​​Rethymno, a newly built villa of 80 sq. m. m with three bedrooms, two bathrooms and a swimming pool currently costs 327,000 euros. A property with similar characteristics in the same area sold last year for €280,000 and in 2022 for €265,000. The growth is 23.3% compared to 2022 and 16.7% compared to last year, allowing owners to make a significant profit on possible resale in the first year of investment.

Investor Profile

Those currently investing in holiday homes are dominated by business people aged 50 to 65, who prioritize the same use. There is also a significant group of younger buyers between the ages of 35 and 45 with high incomes who expect not only the same use, but also to operate the property for a certain period and then resell it for a tax-free capital gain.

According to Elxis, prices for holiday homes in Greece are expected to increase by an average of 8-10% per year in the coming years, which will certainly attract foreign investors. “Many of our clients believe that this period is probably the last opportunity to purchase a unique holiday home in Greece at a highly competitive price, which will allow them not only to secure a good net annual income (at least 4%) from its operation, but also a significant profit from future resale in a few years,” concludes Mr. Gavrielides.

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