Rising interest in real estate in the Greek islands
ENGEL & VÖLKERS
Greece and its islands have for many years been one of the most attractive destinations in Europe. Engel &Völkers expects demand for second homes to rise by this summer and prices to remain stable.
Greece is set to reopen its borders on May 14, welcoming once again tourists, buyers and investors from abroad. “We are delighted to see Greece’s summer protocol for 2021 to be in course and to welcome foreigners again. The Greek islands have attracted this past year strong interest from international buyers, especially from Central European countries. We are expecting this number to rise exponentially in the coming months,” says Georg Petras, CEO of Engel &Völkers in Greece. In the last twelve months, regardless of the coronavirus pandemic, property prices in the islands have remained stable and interest levels have skyrocketed.
Highly sought-after destination for international buyers
No Mediterranean country has more islands than Greece: there are over 3,000 in total, 113 of which are officially inhabited. The Cyclades islands with Mykonos and Santorini are one of the top summer destinations in Europe. Here the request for real estate, as well as on Crete and Corfu and in the coastal areas of the Peloponnese like Porto Heli, has remained very high regardless of the corona pandemic. In Porto Heli houses reach a maximum total of 7 million euros. Amongst the most popular destinations are Mykonos, Paros and Rhodes, due to the exclusive villas and hotels, award-winning restaurants, crystal-clear waters and white sandy beaches. Rhodes, due to its southern location and warm temperature, is also a highly-favored destination in the winter. Here the top price for a house is 4 million euros, whereas apartments in the most requested areas reach up to a maximum of 6,000 euros per square meter. At the same time, the maximum total price for a detached home in Paros can be estimated at 8 million euros.
Currently, the most expensive estate in the portfolio of Engel &Völkers Greece is a villa in Mykonos with direct access to the sea; the asking price is 10 million euros. International buyers on the Greek islands make up around 85 percent of potential customers. Around 90 percent of homeowners are private, who make use of their property as a second home. Strong interest is noted especially from Central Europeans coming from the DACH regions (45 percent from Germany, 15 percent from Switzerland and 10 percent from Austria) as well as the Benelux countries and the USA. Greece offers the perfect opportunity for second home buyers: luxury coastal properties, a superb quality of life and new infrastructural redevelopment projects, which present a unique package for anyone seeking a sound investment with high appeal. Real estate can also be rented out during a specific period of time as the return on investment (ROI) in the islands are very beneficial, starting from 5 percent and reaching up to 10 percent.
Outlook: Increased demand expected for 2021
Greece and its islands have for many years been one of the most attractive destinations in Europe. Engel &Völkers expects demand for second homes to rise by this summer and prices to remain stable. “This is a year of great opportunities for all investors and buyers looking to own a property in Greece. 2021 might well be the year that the market reorganises and stabilises under new circumstances, opening up savvy investment opportunities with the potential for high returns,” says Georg Petras. “We want to offer quality services in the first and second home sector, meaning both for foreign and also domestic investors,” he concludes. With the appropriate tax measures, government support, the development of necessary infrastructure, Greece can be a competitive destination for Germans, British and other nationalities, when the pandemic comes to an end.