Why is Crete such a popular place to buy a home in Greece? The high demand from international buyers for newly built, energy-efficient homes has significantly increased in the past few years. So, how many new homes are being built in Crete, and where are the best places to buy a new home in Crete?
The data in this article is from the Hellenic Statistical Authority (ELSTAT).
1. Sunny Weather
Crete has hot summers and mild winters. The hottest month is July, when the temperate is 32 C in the day and 22 C at night. July is also the driest month, with 31 sunny days on average. Unlike Athens and some areas of mainland Greece, Crete does not have temperature extremes that are suffocating in the height of the summer. The coldest month is January, with a high of 14 C and a low of 7 C. This of course will change if you are in the mountains.
2. Rich Cultural Heritage
The history of Crete goes back thousands of years and the island has treasures from the Minoan civilization. Among archaeological sites, the Palace of Knossos is the most popular to visit. The sites of Malia and Phaistos are also worth visiting. Phaistos is known for its palace from the second millennium BCE, and Malia is known for its stonework and frescoes.
3. Diverse and Picturesque Landscapes
Crete has a wide variety of landscapes that are ideal for anyone who loves the outdoors. On the coast, you will find golden sand beaches. In the mountains, you will find traditional villages and scenic views. The island of Crete also has ancient ruins, gorges with steep cliffs, and a network of caves.
4. Easy Flights
There are 3 airports to fly into in Crete: Heraklion Airport (HER), Chania Airport (CHQ), and Sitia Airport (JSH). The former 2 are larger and offer more international flights.
Heraklion has non-stop flights from 27 countries, and Chania from 20 countries. Some of the airlines flying this route are Aegean Airlines & Olympic, British Airways, Lufthansa, Iberia, Finnair, Norwegian Air, SWISS, Brussels Airlines flights, and SAS.
5. Access to the Sea
The Mediterranean Sea is known for its stress-reducing qualities. Some say that the waters of Crete are good for the skin, help circulation, and help with weight loss. To add to the therapy of the sea, the fresh air and sun will leave you feeling refreshed and relaxed. It’s no wonder that the locals are always happy.
6. Beaches
Crete has more beaches than any other island in Greece. The coastline stretches for 1046 kilometers and has many sandy, romantic beaches. Uniquely, Crete has the biggest palm forest in Europe – Vai on the east coast of Crete. The beaches of Balos, Elafonissi, and Falasarna are some of the most popular beaches and are found on the west coast of the island.
7. Good Place to Retire
Crete has a variety of activities, so you will never get bored in your golden years. In Chania and Heraklion, you can walk around the historical center and explore the history of the Venetian influence in Crete. For living, smaller towns like Almida, Douliana, Elounda, or Agios Nikolaos are ideal for a slower pace of life. Of course, you will still have access to Crete’s larger towns.
Many expats have made Crete their home – especially Brits, Germans, French, Dutch, Belgians, Italians and Americans. The CIC (Cretan International Community) is one example of a group that supports expats, and is based in Rethymno. The CIC organizes social events and helps provide practical info for relocating to Crete.
How Many New Homes Are Being Built in Crete?
According to Elxis’s research, there was already a significant rise in activity during the first 11 months of 2024 compared to the whole of 2023, and even more so compared to 2022. Specifically, according to ELSTAT, building permits were issued for 3,503 residences between January and November 2024. This represents an increase of 17.8% compared to 2023 (2,972 residences) and 45.8% compared to 2022 (2,401 residences). The highest increase was recorded in the Chania region, where the number of residential building permits rose by 46.5% compared to 2023 and 61.8% compared to 2022.
Who Builds New Homes in Crete?
These figures confirm the significant increase in investment for new vacation home developments, as demand far exceeds supply. “In Crete’s vacation home sector, we see all categories of developers, from local firms to nationwide groups, and from domestic real estate development companies to investment funds. Interest is strong, as supply lags behind demand, and prices have been steadily rising in recent years, with an average annual growth rate of 8%-10%,” says Giorgos Gavriilidis, CEO of Elxis – At Home in Greece.
How Much Does a New Home in Crete Cost?
According to Elxis, new housing projects are being developed in Chania in areas such as Tsivaras (Apokoronas) and Marathi (Akrotiri), with detached houses selling for over €4,000 per square meter. In Kastelli, luxury beachfront apartments are being constructed, priced at €7,000 per square meter. Additionally, in Maleme, just 100 meters from the beach, new vacation homes are selling for €5,500 per square meter, while in Kokkino Chorio, newly built villas with stunning views are priced at €6,100 per square meter.
Significant investments in new vacation home developments are also taking place in Rethymno. In the northern part of the region, in Dramia near Georgioupolis, detached houses with swimming pools are being developed, selling for around €4,100 per square meter. Similarly, in Kyranna, vacation homes are priced at €4,300 per square meter, while in the city of Rethymno, sea-view apartments are being sold for €4,500 per square meter. Further south in Plakias, new constructions are priced at €5,000 per square meter, while in Asomatos, prices reach €4,000 per square meter.
As Mr. Gavriilidis explains, companies aiming to attract foreign buyers need the right tools: “Elxis – At Home in Greece provides the necessary guidance so that developers can properly manage buyers and maintain continuous communication with them throughout the construction process. It is crucial to provide regular updates on construction progress, to adhere to delivery timelines, and to promptly resolve any technical issues that may arise after the property is handed over.”
How Do I Buy an Off-Plan Home in Crete?
An off-plan home is a property that is sold before construction is started. It is also called a “new development” home. 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.
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.
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.
