Greece has naturally become a popular destination for purchasing a second home because of its scenery, hospitality, culture, and ideal climate. While it is a popular place to buy property, it’s important to have an accurate estimate of the value of a property before buying or selling.
As a seller, it helps to know the value of your property because you can choose what features to market to potential buyers. As a buyer, it helps to know the value of your potential next home because you can negotiate a better price.
Location
Perhaps the most important factor in a property’s value is its location. While this is a cliché in the home market, properties in tourist destinations, near a beach, or with a view of the Mediterranean Sea, will generally be worth more. In remote areas, homes generally have lower values.
Home Size & Usable Space
Many factors go into the value of a property when looking at on-site features. This includes the architectural features and the layout of the home, the floor on which the apartment is located, the view position, recent maintenance, and whether it is furnished.
Age of the Property
It’s also important to take into account how old the property is. Older properties, as expected, have lower values. Newer properties are more expensive. Renovations also play a role. For example, older properties which have renovations are likely more valuable than an old property without renovations.
Renovation Potential
Homeowners also like to know if a property can be upgraded. For example, if you can increase the floor space, add an extra storey or bedroom, or add a pool, the property is likely worth more. This is because buyers value the ability to customize a space. Note than in Greece, the ability to add extensions on a property could also be limited by Greece’s Forest Regulations.
Market Trends
The supply and demand of the local market play a role in property values. Interest rates and economic conditions also are important to watch. In a seller’s market, demand is high and supply is low, so property values will increase. In a buyer’s market, supply is high and demand is low, so property values decrease. In a seller’s market, homes usually sell more quickly, and in a buyer’s market, homes stay on the market for a longer time. Greece in 2023 is a seller’s market, because demand is higher than supply.
The Greek Market
The local market in Greece is on an upward trend. According to data from the Bank of Greece in the first quarter of this year, the rate of house price growth in Greece is reaching record highs. More specifically, prices rose 14.5% year-on-year in Greece as a whole, and even sharper spikes were seen in Greece’s 2 largest urban centers, reaching 16.5% in Attica (the region which includes Athens) and 16.1% in Thessaloniki.
Interest Rates
Yes, this is the boring economics part, but it’s important when thinking about property values. A rise in short-term interest rates (for example, what you pay on a credit card or on a short term loan) makes short-term debt more expensive. For example, if you’re spending more money paying off a credit card or short-term loan, you will likely have less money available for paying for a house.
In Greece in 2023, interest rates increased, and banks are less willing to lend. If customers get a loan, the money is more expensive. This is why more buyers in Greece are choosing off-plan properties.
Neighborhood Comps
One of the best ways to assess the value of a home is to look at sale prices of similar homes in the neighborhood that sold recently. You might hear these homes referred to as “comps.” In general, if you have a home appraisal done by an agent, real estate experts will use comps to help evaluate your home’s value.
Appraising Your Home
Determining the value of a home is complicated. There are value calculators available online, but it’s most reliable to consult a industry specialist. Elxis offers sellers help appraising the value of their property. We also take the guess work out of negotiations, which can admittedly be scary for a first-time home buyer or seller.
Interested in listing your property? Here’s where to get started.
