What are the steps of buying an off-plan home in Greece? How long does it take? When do I pay? What is different about off-plan homes compared to existing properties in Greece?
What is an Off-Plan Home?
An off-plan home is a property that is sold before construction is started. In Greece, almost all new holiday homes are sold off-plan. In other words, if you find a property in Greece that was built in the last few years, it is likely a resale, and its price will probably be substantially higher than those of similar off-plan houses.
Advantages of Off-Plan Homes in Greece
1. Higher Resale Value
An average off-plan property is very likely worth 20-30% more as soon as it is completed. This means that with the same investment, you will get much more value for money if you go for an off-plan property compared to an existing home.
2. Modern Design
Off-plan homes in Greece are typically built by new, up-and-coming architects who use minimalist designs. This means new tiles, new bathrooms, stylish furniture, sleek sight lines, and often an infinity pool.
3. Easier to Rent Out
Off-plan homes often rent more easily compared to something built 10 years ago. The quality of the architects’ work is attractive to high-income renters who find an appeal in innovative constructions.
Not only are off-plan homes more popular when rented out through platforms like AirBnB or Booking.com, but people are also willing to pay more for them. The difference in rental prices between new and existing houses can be huge, even up to 100%.
4. Cheaper Than Existing Homes
Let’s assume you are searching for a home in a specific area with a specific size and specifications. Comparing off-plan and existing properties built in the last five years, off-plan homes will likely be less expensive to buy. Of course, there are some exceptions to this rule, and prices can vary based on the specific location in Greece.
5. Brand New Appliances and Equipment
Off-plan homes are brand new. If there are any small defects, add them to the snagging list and submit them to the constructor for fixing. Equipment and appliances are new and have warranties. The home is up to today’s standards and will likely be maintenance-free for at least the first five years.
Read all the advantages of off-plan homes in Greece here.
FAQ’s About Off-Plan Homes in Greece
What is the Payment Schedule for an Off-Plan Home?
The payment schedule for an off-plan home in Greece is set up to minimise financial risks for our clients. The whole process starts with you purchasing the plot. This means that you own the plot and everything that is going to be built on it, from start to finish.
After that, every further instalment is connected to the completion of specific construction stages. So you only pay for the foundations after they have been completed, then for the concrete structure once it’s finished, and so on for every building phase.
The last payment is due after the completion of the villa. Then, you can inspect the villa to see if it’s built as agreed and only then make the last payment. That way, it’s actually the constructor that needs to worry if you make the payment since he has already completed the work connected to your payment.
Can the Cost of an Off-Plan Home Increase During Building?
If you’re going to build a new home without agreeing on a fixed price with the contractor, there’s always a chance that the final amount you’ll spend is higher than you calculated, due to increased prices of materials or labour.
Therefore, we always advise making a deal with a contractor with a closed, guaranteed budget that is not subject to changes. In fact, all construction agreements drawn up by Elxis – At Home in Greece work with a guaranteed budget. This way, the contractor carries the risk of any price increases that might occur, and you know exactly what the house is going to cost you from the start.
Are Off-Plan Homes Customisable?
Off-plan homes in Greece are often customizable. Some developers allow you to design it the way you like, choose the kitchen, tiles, bathrooms, etc. You can really have the house you always dreamed of, within a budget you plan for.
This isn’t the same for all developers, and customization varies based on the type of construction. For example, some developers will allow you to choose the kitchen’s finishings but not its layout. Others don’t allow changes to the construction plan. Be sure to ask about the level of customization that is possible.
Note that when the time comes to decorate, the best source of ideas is the developer of your new home or a specialized interior designer. They have years of experience designing Greek homes and can give you the best advice.
Do Off-Plan Homes Actually Match the Renders I See Online?
One image below is a render, and the other is the completed villa. Can you tell which one is which?
When Can I Move In?
It’s very tempting, once the last stage of building is complete, to rush to live in your new home. It’s only natural to want to move in immediately! However, it is important to keep in mind that a brand-new home is not immediately habitable from day one. For example, there won’t be a bed to sleep in until the home is furnished. And even if the home is delivered furnished, you’ll need to buy bed linen, duvets, etc.
Many owners of off-plan homes in Greece travel to the area first for the delivery, staying in a nearby hotel or Airbnb during the first period after completion. This gives you the opportunity to furnish the home gradually and to organize everything in the way you want.
Are Off-Plan Homes Furnished?
For some projects, electrical appliances are included in the price. For other projects, you can order any appliances you like at an additional cost, and the developer will install these before delivery. This way, you can customize the kitchen according to your needs (and cooking skills!). Furniture is typically not included, but for many projects, the developer will propose an optional furniture package at an attractive price. If you want to make it easy on yourself, you can choose this package; if you prefer to make your own furnishing choices, you can handpick all furniture yourself.
Is There a Warranty on Off-Plan Homes in Greece?
For most projects offered by Elxis, there is a ten-year warranty for the load-bearing structure and a five-year warranty for the water-tightness of the roof. For everything else except consumables, there is a two-year warranty.
What Happens If My Home Isn’t Ready on Time?
All contracts drawn up by our lawyers contain a fixed delivery date and provisions regarding late delivery. If, for some reason, the constructor takes longer than agreed to complete the house, the contract’s penalty clause provides for financial compensation of the buyer. The exact amount depends on the contract and how late the delivery is. Penalty clauses do not apply in cases where the delay is caused by force majeure situations (extreme weather conditions, earthquakes, etc.).
Want to see the kinds of off-plan homes that are available right now in Greece? Click here for more.
