The holiday home market in Greece is witnessing a significant rise in demand from foreign investors since the start of the year. In fact, buyers are looking to buy more luxurious properties than the past couple of years, which in turn results in a higher sales volume and prices on the rise. Available budgets this year have increased and range from 350,000 euros up to 550,000 euros.
In its latest market analysis, Elxis-At Home in Greece, a specialized holiday home market expert and service provider, says that this is happening for several reasons, besides the overall appeal of the Greek landscape and the country’s natural beauty. “A key reason is that sales prices, even at the range high of 550,000 euros, are still quite competitive, when compared to other countries of South Europe. Villas with private pool, two/three bedrooms and an array of amenities, seaside or with a view to the sea, are priced over 40% higher in countries, like Spain and Italy”, says Mr. George Gavriilidis, CEO of Elxis.
According to the company, an additional reason for this preference towards more expensive houses, is of course the fact that most of Elxis’ clients have bought “off-plan”. These investments allow for a lower price point which can reach up to 15% – 20%. This, in turn offers the potential of a bigger return on investment, but also a higher future profit, in case of a resale after a few years. In fact, there are some investors who have already elected to take this path and resell their holiday homes, even a couple of years after their initial purchase, due to the profit they were able to realize.
On such sale was done this month (May 2024). The Dutch owners of a villa in one of the residential complexes that Elxis markets, chose to sell their property for 325,000 euros, realizing a profit of 47%, compared to 2021, when the property was bought. The only difference was that the house was sold furnished, which wasn’t the case when it was first bought.
Today, a newly built villa in the southern part of Rethymnon in Crete, with a surface area of 80 sq. m., three bedrooms, two bathrooms and a pool, is priced at 327,000 euros. A property with similar specification in the same region, was selling last year for 280,000 euros and was even lower in 2022, with a sell price of 265,000 euros. The 2024 price represents an increase of 23.3% versus 2022 and 16.7% compared to just last year, which opens up the option of significant profits for existing owners, in case of a resale, already one year into their investment.
A few words about the profile of investors
A typical holiday home investor in Greece today is a businessman aged between 50 and 65 years old, who prioritizes the use of the house for his own pleasure. Another important buying group are younger buyers, from 35 to 45 years old, with higher income, who are not only looking for a house to spend their holidays, but are also looking for buy-to-let opportunities and reselling for profit, which in Greece is tax-free.
Based on Elxis’ data, prices for holiday homes in Greece are expected to rise by an average annual rate of 8%-10% over the next few years, which of course is acting as a foreign investor “magnet”. “Many of our clients believe, rightfully so, that the current period is probably the final chance they’ll have to acquire a unique holiday home in Greece, in a very competitive price point. This will allow them to not only secure a solid annual net yield of at least 4% from rental income, but also profit from a future resale of this house in a few years’ time”, Mr. Gavriilidis concludes.
About Elxis
Elxis is an elite provider of realty and legal services in the Greek market. With offices in Thessaloniki, Crete and Utrecht in the Netherlands and a team of highly qualified property professionals, Elxis has a track record of over 30 years of experience in managing residential property investments. The company covers the needs of its international clientele in the best way possible, with a team of seven legal experts, as well as with personnel whose native spoken language is English, Dutch and German.
