In a period of intense uncertainty regarding the course of the global economy, real estate investments are making a strong comeback as a “defensive” strategy that can offer significant returns. According to data from Elxis – At Home in Greece, buying a newly built holiday home in Greece is one of the most attractive options, providing both future capital appreciation prospects and significant income from short-term rental.
Increase in holiday home prices
Indicatively, in the last 12 months, the purchase price of a newly built holiday home of 80 sq.m. in Rethymno, Crete, with three bedrooms and a private swimming pool, amounted to 327,000 euros, a price increased by 16.7% compared to 2023 (280,000 euros) and by 23.3% compared to 2022 (265,000 euros).
“If the owner also chooses to rent, the potential profit can be even greater”, stresses the CEO of Elxis – At Home in Greece, Mr. George Gavriilides.
Rental income
According to the company’s analysis:
House 50-80 sq.m., furnished with swimming pool and terrace:
➤ rent 80-140 euros per bedroom/night
Larger houses 120-150 sq.m.:
➤ rent 180-240 euros per bedroom/night
Income is affected by factors such as the view, distance from the sea, the age of the property, the existence of a garden or swimming pool and proximity to the airport or tourist spots.
Management – Costs and returns
The final performance also depends on the operating costs. Working with a management company involves a 10%-30% commission, including, where applicable, cleaning, maintenance, reception and guest support services, as well as the ability to track bookings and revenue online via the cloud. However, it is a solution chosen by most foreign owners, as it offers them significant profits without having to worry about anything.
Example of performance
Detailed example of Elxis – At Home in Greece:
Buy in 2019: 145 sq.m. house with 3 bedrooms & swimming pool
Final cost: 515.000 euros (450.000 purchase + 65.000 transfer/equipment)
Net profit from lease: 80,000 euros (2021-2024)
Goodwill of the property until the end of 2024: EUR 182,889
Total gain on possible sale: EUR 262,979
Of particular importance is the purchase from the projects, as it ensures immediate goodwill upon completion of construction.
International investor interest
According to Mr.Gavriilides, buyers from the Netherlands and Belgium are showing strong interest, viewing the properties mainly as investment vehicles. Around 50% of buyers choose to rent during the period when they are not using the property, while some – particularly Dutch – proceed to resale within two years, at a high profit.
Increasing participation is also observed from Germans and French, although they tend to use the properties mainly for personal holidays.
Crete, with sunshine from April to October, is emerging as a top destination for holiday home investment.
However, all indications are that investment in holiday homes will continue to be an upward trend in the coming years.
