If you’re searching for your dream home in Greece, you’ve probably already run into the question: should I buy an existing home in Greece, or a new, off-plan home? Many buyers are specifically looking for off-plan houses in Greece in the best locations in Greece to maximize their investment and lifestyle benefits, with off-plan apartments and villas also being popular choices among buyers. Off-plan property investment refers to purchasing real estate before construction is completed, allowing buyers to secure a unit at lower pre-construction prices and benefit from potential capital appreciation. Many investors choose to invest in off-plan properties in Greece for both lifestyle and financial benefits, such as flexible payment plans and the potential for rental income.
First things first, let’s define off-plan homes and discover the unique opportunities they offer in Greece. The Greek property market continues to attract international investors seeking geographic diversification, with a growing number of off-plan developments available. Recent data from market reports shows a steady increase in off-plan property purchases among overseas buyers, with data analysis highlighting this upward trend. Off-plan developments in Greece typically offer modern specifications and warranties, making them especially attractive to international investors looking for both quality and security in their property investments.
What is an Off-Plan Home?
An off-plan home is a property that is sold before construction begins and is typically part of an off-plan project, a real estate development where multiple houses or villas are offered for sale, as well as apartments with various numbers of bedrooms and layouts, before or during the early stages of building. In Greece, almost all new holiday homes are sold as part of such projects. Buyers can enter at an early stage of the project, often benefiting from lower prices and greater customization options compared to completed homes, allowing investors to tailor the layout and number of bedrooms to their preferences. 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 already 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 when compared to an existing home.
2. Modern Design for Modern Living
Off-plan homes in Greece are typically built to modern specifications and use high-quality materials, ensuring enhanced appeal, durability, and reliability. These properties are usually designed by new, up-and-coming architects who favor minimalist designs; think contemporary design elements, new tiles, new bathrooms, stylish furniture, sleek sight lines, and often an infinity pool. The focus on modern architecture and sustainability means many off-plan homes comply with strict eco-friendly regulations, incorporating features such as heat pumps, solar panels, and smart home integrations.
3. Easier to Rent Out
Off-plan homes often rent more easily in comparison to something that was 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%. Additionally, gross rental yields in top-performing holiday locations in Greece can cross 6% to 10% seasonally, enhancing the investment appeal.
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, newer properties, off-plan homes will likely be less expensive to buy. In Greece, off-plan property purchases typically involve flexible payment plans that allow buyers to spread costs over the construction period, making it easier to manage finances without a large upfront payment. Prices can vary based on the specific location in Greece, but off-plan homes often come at a 20% lower price point than completed homes.
5. Ideal Locations in Greece
Off-plan houses in Greece are often located in sought-after locations, offering buyers a choice between vibrant city living and tranquil coastal escapes. Many off-plan homes are located in sought-after areas such as central Athens, where city amenities and cultural attractions are within easy reach, or along the scenic shores of the Ionian Sea, renowned for its stunning crystal clear waters and luxury beachfront properties. Some developments are nestled in scenic hillside locations, providing privacy and panoramic views, while others are just a short walking distance from the beach or city center, offering easy access to local amenities, restaurants, and the lively atmosphere of Greek towns. For those seeking ease of access, ground-floor apartments or villas are available, making them ideal for families or individuals with mobility needs. As an example, certain developments feature four villas situated near charming coastal villages, Chania, and the airport, each with spacious layouts and private pools. Additionally, proximity to an international airport is a key advantage for international buyers, making travel to and from Greece seamless. Whether you prefer a home located near the sea, in a bustling city, or within walking distance of the beach, off-plan properties in Greece offer a curated selection of options to suit every lifestyle.
6. Customizable
Off-plan homes in Greece are often fully customizable. You can design the layout the way you like, style it to your preferences, and choose the kitchen, tiles, bathrooms, and more. Buyers can also opt to add a private pool as part of their preferred layout. While you can truly have the house you always dreamed of within a budget you plan for, certain customizations, such as adding a private pool or selecting premium finishes, may incur an additional cost beyond the base price.
7. 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.
8. Best Sustainability
Off-plan homes have high standards of energy-efficiency and sustainability, as they are built according to the newest specifications. This means that the home may have extra features like green roofing, heat pumps, solar panels, and a solar boiler. Opting for an off-plan property in Greece not only allows for customization to your preferences but also offers potential for higher resale value and modern amenities.
FAQ's About Off-Plan Properties in Greece
What is the Payment Schedule for an Off-Plan Home?
The payment schedule for an off-plan home in Greece is designed to minimize financial risks and provide flexibility for our clients. The process begins with the purchase of the plot, ensuring you own both the land and everything to be built on it. Payments are then spread across the construction period, with each instalment tied to the completion of a specific stage of construction. For example, you pay for the foundations only after they are completed, then for the concrete structure once it’s finished, and so on for each subsequent stage.
This flexible payment plan allows buyers to manage their finances more easily, as costs are spread over the entire construction period rather than requiring a large upfront payment. The final payment is due after the villa is completed, allowing you to inspect the property and confirm it meets your expectations before making the last payment. This approach ensures that the constructor is incentivized to complete each stage to your satisfaction before receiving payment.
When Do I Sell an Off-Plan Home in Greece?
Buyers generally keep their home for about 10 years before selling it, which means that of the homes that were recently built, there are few resales. The ones that do become available are sold very quickly due to the high demand for this kind of home.
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. Additionally, if you decide to add features or upgrades, such as a private swimming pool or enhanced finishes, these will incur an additional cost beyond the original agreement. Therefore, we always advise making a deal with a contractor with a closed, guaranteed budget that is not subject to changes. This way, the contractor carries the risk for any price increases that might occur, and you know exactly what the house is going to cost you from the start.
Advantages of Existing Homes in Greece
1. No Need to Wait
Unlike off-plan properties, where you see the home slowly being built, an existing property does not need imagining. You get the immediate satisfaction when buying and can enjoy your dream life in Greece without waiting for the construction to finish.
2. Traditional “Greek” Feeling
Off-plan homes usually have modern designs, view lines, pools, and more luxurious finishing. On the other hand, existing homes are ideal if you like simplicity, a more rustic feel, and a feeling that you are living among the locals.
3. Historical Value
Some regions of Greece have building styles that are historic and tell a story about the people who lived there. For example, the Tower Homes in the Peloponnese, the stone houses of Crete, and the pebble mosaics of Rhodes are all a piece of history.
4. Easier to Get Golden Visa
The Golden Visa program in Greece is a residency-by-investment program for non-EU residents. By purchasing real estate above a certain price in Greece, you are eligible to apply for the Golden Visa, which grants residency, restriction-free Schengen Zone travel in Europe, and family inclusion. The minimum investment required for a Golden Visa is set at 400,000 euros. Golden Visas are granted for completed properties, so for off-plan homes, you need to wait for the construction to finish before you can obtain the visa. Existing homes are better if you want a Golden Visa in a shorter amount of time.
5. No Need to Furnish
If you buy an off-plan home, consider that you will have to furnish your new home. With an existing home, you don't need to spend time or money on decorating. Of course, for some people, half the joy lies in the searching for furniture and decorations, but for others it might be an extra cost they didn't take into account.
6. Full-grown Garden
With an off-plan home, your freshly planted garden will take some years to become full-grown. A golden tip: whatever you do, plant a bougainvillea from the very first day your house is delivered. Bougainvilleas in Greece are ideal not only only because they will grow into a beautiful eye-catcher, but also because they will add value to your property. Everyone loves bougainvilleas, and so will future renters (and buyers!). An existing home will, on the positive side, already have a full-grown garden. It might even have a bougainvillea!
7. Price Can Be Negotiated
With most developers, prices of off-plan properties are non-negotiable. Developers have made their calculations and have established their exact profit margins, so prices of new developments are more or less fixed. What you can do is to try to get a better price on extra options, like solar panels, pool heating, or other features. An existing home, on the other hand, can usually be negotiated. Of course, it depends on the seller's personal and financial situation whether and how much room for negotiation there will be, but you can always give it a shot!
