Crete’s Real Estate Appeal: A Magnet for European Investors

Greece has emerged as a magnet for European capital,

particularly in the purchase of country homes. Elxis, a Greece-based Dutch company specializing in holiday home sales, notes that the Greek market has become an “El Dorado” for about three million potential European homebuyers. Surprisingly, higher interest rates have positively impacted demand in recent months. Lower sale prices in Greece compared to other European markets enable foreigners to buy holiday homes without needing to secure a mortgage in their country, opting instead to use their capital, savings, or other resources.

After interest rates increased, the desire to obtain bank loans for holiday home purchases diminished, mainly because interest rates of 4–5% essentially negate the profits an investor might gain from the property. Investors from Western and Northern Europe now prefer to use their savings for such purchases, particularly in Greece, offering a fourfold benefit: inflation protection, satisfactory income from property exploitation, personal use, and excellent future value appreciation prospects.

The average sale price of a newly built holiday home in Greece is around 300,000 to 350,000 euros, offering significant value as these homes often come with sea proximity or views, pools, and modern amenities. This pricing is attracting more potential buyers, with around three million citizens from Western Europe considering investing in such properties for both exploitation and personal use.

In terms of preferred areas, apart from Greek islands traditionally favored by foreigners, the Athenian Riviera is also experiencing rising interest. Moreover, more than one in ten holiday homes (12.3%) in Greece this year have been purchased by expatriates, mainly from the USA, Canada, and Germany. The driving force behind these purchases is the trajectory of recovery and rising value in the Greek housing market, offering quality real estate at competitive prices.

The Greek luxury housing market has undergone significant changes in recent years. Sotheby’s International Realty notes that sales deals in Athens, Porto Heli, and Mykonos are just the beginning, with current prices for “trophy assets” in Greece being only a fraction of those in southern France, Italy, or Spain. Prices for luxury homes in key locations range from 6,000 to 12,000 euros per square meter, and exclusive properties can reach up to 20,000 euros per square meter or more.

According to Sotheby’s International Realty, Corfu remains a top preference, but the Athenian Riviera has recently surpassed Mykonos in demand, registering a 25.8% increase in housing inquiries. Athens center and Paros follow, with Lefkada, Crete, Kea, Tinos, and Rhodes also being popular.

Significant investments in vital infrastructure like ports, highways, and airports by both the public and private sectors have contributed substantially not only to real estate development but also to tourism and various economic sectors. This development has led to job creation and supported other industries like construction, digital technologies, and logistics.

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