More and more foreign investors are buying homes in Greece since the start of 2024. In fact, buyers are looking to buy more luxurious properties than in the past couple of years, which leads to higher prices. Available budgets this year have increased and range from 350,000 to 550,000 Euros.
Higher Budgets for Homes in Greece
Why are budgets for a home in Greece increasing? Firstly, there is the overall appeal of the Greek landscape and the country’s natural beauty.
Second, a key reason is that sales prices, even at about 550,000 euros, are still quite competitive when compared to other countries in southern Europe.
Villas with a private pool, two/three bedrooms and many amenities, located seaside or with a view to the sea, are priced over 40% higher in countries, like Spain and Italy”, says Mr. George Gavriilidis, CEO of Elxis.
Third, one reason why budgets have increased this year is because most of Elxis’ clients have bought “off-plan”. These investments allow for a lower price point by 15% – 20%. This in turn offers the potential of a bigger return on investment, but also a higher future profit.
In fact, some investors have already resold their holiday homes, even a couple of years after their purchase, because of the profit.
Quick Profits for Homes in Greece
One example of such a sale was this month (May 2024). The Dutch owners of a villa chose to sell their property for 325,000 euros, making a profit of 47%, compared to when they bought the property in 2021. The only difference was that the house was sold furnished.
Today, a newly built villa in the southern part of Rethymnon in Crete, with a surface area of 80 sq. m., three bedrooms, two bathrooms, and a pool, is priced at 327,000 euros. A property with similar specifications in the same region was selling last year for 280,000 euros and was even lower in 2022, with a sale price of 265,000 euros.
The 2024 price represents an increase of 23.3% versus 2022 and 16.7% compared to just last year. This means you can make a profit just one year after an investment in a home in Greece.
Who Buys Homes in Greece?
A typical holiday home investor in Greece today is a businessman aged between 50 and 65 years old, who prioritizes the use of the house for his own pleasure.
Another important buying group are younger buyers, from 35 to 45 years old, with higher income. This category is not only looking for a house to spend their holidays, but are also looking to resell for a profit, which in Greece is tax-free.
Predictions for the Future
Based on Elxis’ data, prices for holiday homes in Greece are expected to rise by an average annual rate of 8%-10% over the next few years.
“Many of our clients believe, rightfully so, that the current period is probably the final chance they’ll have to acquire a unique holiday home in Greece, at a very competitive price point. This will allow them to not only secure a solid annual net yield of at least 4% from rental income, but also profit from a future resale of the house in a few years,” Mr. Gavriilidis said.
About Elxis
Elxis is an elite provider of realty and legal services in the Greek market. With offices in Thessaloniki, Crete and Utrecht in the Netherlands and a team of highly qualified property professionals, Elxis has a track record of over 30 years of experience in managing residential property investments.
The company covers the needs of its international clientele in the best way possible, with a team of seven legal experts, as well as with personnel whose native spoken language is English, Dutch and German.
