Strong demand for holiday homes in Greece

The Greek holiday home market remains one of the most dynamic segments of domestic real estate that gathers the greatest growth prospects, with the increased demand predicted to continue and in several areas to be strengthened due to the many infrastructure projects underway, such as resulting from a nationwide survey carried out by RE/MAX Hellas.

In fact, not even the challenges stemming from the war in Ukraine and inflationary pressures are capable of deterring the demand for holiday homes in Greece. According to the data of the RE/MAX Hellas network, which currently has 76 offices nationwide and over 1,000 consultants, after the start of the war in Ukraine, 61% of the offices in its network stated that the corresponding demand was not significantly affected, while 39% (mainly in Northern Greece) underlined that the demand increased especially for renting furnished apartments in the city centers like for example in Thessaloniki.

Equally important is the fact that Northern Europeans choose to move permanently to Greece as soon as they retire, typically stating that they cannot resist the “beautiful natural landscapes, the clear blue waters, the picturesque settlements, the rich history and tradition, the hospitable people that make up beautiful Greece”.

The strengthening of the demand for Greek holiday homes this year seems to be favored by the very good performance of tourism, but also by the significantly lower prices than other Mediterranean-European destinations.

The corona virus pandemic also contributed to the great recovery of the Greek holiday market with the new needs it created in the daily life of citizens where apart from families and couples who were spending their vacations in their own holiday home long before the pandemic, in the last two years more and more individual travelers and young adults have been looking for other quality accommodation solutions, combining work and relaxation against the backdrop of the vast blue of Greece.

Regarding the “infrastructure projects” factor, which positively affects the choices of many interested buyers, RE/MAX Greece’s analysts point to Alexandroupolis with the increase in its port, Nafplio due to the dredging of the port for cruises and also the Crete with the new airport in Kasteli that will replace “Nikos Kazantzakis” and BOAK that will connect the eastern part of the island with the western part. Subsequently, the expansion of the Paros airport has created a climate of optimism as large aircraft will now be able to land on the island. The new Pyrgos-Patras highway will boost traffic in N. Ilias with the coastal areas experiencing the greatest demand, while the development of the port of Lefkimmi will positively affect the demand towards the “Island of the Phaeacians”. And these are just a few typical examples.

When it comes to property sales prices in tourist destinations, Mykonos emerges as the champion, followed by Paros and Santorini.

AirBnB & buy vacation homes

Foreign and domestic investors are watching with interest the surplus value offered by Greece and are looking for real estate opportunities with the aim of creating hotel units, obtaining the Golden Visa and operating them through short-term leases. The latter seems to significantly influence the decision to purchase a holiday home, according to 67% of the offices of the RE/MAX Hellas network, mainly in the centers of urban cities and in island Greece such as for example in Mykonos, Naxos, Santorini, Paros, Chania, Corfu and Kefalonia.

Tourist real estate returns

It is characteristic how the highest rate of return on tourist properties nationwide is found in Southern Greece, the Cyclades and Crete (7%), followed by Northern Greece (6%) and the islands of June (5%).

Property sales prices in tourist destinations (2021)

Mykonos stands out in the tourist area with the highest asking prices for residential sales (€7,250/sq.m.) followed by Paros & Santorini with an average asking price of 3,450 sq.m. & 3,250 sq.m. respectively.

In Crete, despite the popularity of the island in terms of tourism, the levels of selling prices are not that high and there are no big differences between the areas of Chania, Heraklion and Rethymnon.

As far as the Ionian Sea is concerned, Corfu, Kefalonia and Lefkada move at approximately the same levels in terms of the average asking price for the sale of houses, while in areas of mainland Greece that are equally a tourist attraction, such as Halkidiki, Volos and Kalamata the sale prices of the properties are €1,583/sq.m., €1,700/sq.m. & 1,950 respectively.

In detail, the property prices (new & over 5 years old) per tourist area are as follows:

Countries of origin of purchasing interest

The nationalities of those looking for holiday homes in our country vary from region to region. According to the data of the same survey, in Northern Greece the Germans are in first place, while in Southern Greece citizens from Israel.

Country house: origins of buyers

According to the data of the same survey by RE/MAX Greece, of the 100 sales that take place, 54% cover the demand of Greek interested parties and 46% from foreign countries. The search for a holiday home seems to be almost a “Greek” affair in mainland Greek cities such as Xanthi, Komotini and Igoumenitsa (90 out of 100 sales are made by Greeks), while the reverse is observed in island areas such as Naxos, Rethymno and Corfu where 90 out of 100 sales concern foreign buyers.