“Great demand for holiday homes in Greece – Which ones do they prefer?”
“Country houses: From the… plans foreigners are buying in Greece”
“Country Houses: Foreigners are buying from the plans in Greece in 2023”
These recent headlines from Kathimerini, CnnGreece, Imerisia, and Oikonomikos Tahydromos feature research by Elxis – At Home In Greece. The hot topic? 2023’s home market trends.
2023 is a unique year for buying in the second home market. There were several changes in the global economy, namely the increase in interest rates. This increase impacted buying behavior– a trend that Elxis witnessed firsthand from its clients.
Giorgos Gavriilidis, CEO of Elxis – At Home in Greece describes their findings in detail in an interview with Chris Nye, from Your Overseas Home.
Buying Second Homes From Plans
The biggest difference witnessed in 2023 is that customers are buying homes that haven’t already been built. In other words, they are buying from the plans, because the cost is 20% lower than the typical turnkey home. These are known in the industry as “off-plan” homes.
Off-plan homes are typically found on the outskirts of Greece’s picturesque villages. So the hospitality, local cuisine, and central squares so characteristic of the Greek lifestyle are never far away. According to Vangelis Nastos, Elxis co-founder, interest in these kinds of second homes remains high in 2023.
Why is this Happening?
One factor encouraging the increase in off-plan purchases is the increase in interest rates. In 2022, if a customer had €500,000 to spend on a house, they might call up their bank and get a loan for €100,000 or €200,000 to buy the property – or even a property at a higher price point.
In 2023, interest rates have increased, and banks are less willing to lend. If customers are getting a loan, the money is more expensive. At the same time, the pricing of building materials has increased.
In 2023, as a result – quotes Elxis CEO Giorgos Gavriilidis – “if a customer has €500K to spend, they are more likely to buy a cheaper home around €250K and to keep the remaining cash as a reserve.”
The result: The average price customers are paying is decreasing, but the number of transactions is increasing.
The data from Elxis’s most recent research shows a clear trend in 2023 compared to 2022:
- The average sale price per property decreased by 12%.
- The number of transactions increased by 10%.
- The majority of sales during the first quarter of 2023 were off-plan properties.
Are There Other Benefits to Buying an Off-Plan Second Home?
In many cases, newly built homes offer a higher return in the short term because they can be rented out for a higher price when compared to already existing homes.
These homes are typically built by new, up-and-coming architects who use modern materials and minimalist designs. They have new tiles, new bathrooms, and often rent more easily in comparison to something that was built 10 years ago. The quality of these architects’ work is attractive to high-income renters who find an appeal in innovative constructions.
Other trends: Golden Visa
One strategy to secure a residence permit in Greece is to apply for a “golden visa”. Buying a property of at least €250,000 gives you the right to a residence permit in Greece.
UK citizens who are no longer a part of the European Union are particularly drawn to the Golden Visa program, since it is one of the last programs of its kind available in the EU. In 2023 so far, 17.4% of Elxis’s customers purchased with an intention to acquire a Golden Visa.
Bundled Services
Many of the off-plan homes being sold in 2023 are offered in combination with property and rental management services– services that Elxis – At Home in Greece provides in Southern Crete.
For other questions about off-plan properties, you can reach out to our team at contact@elxis.com.
