Holiday homes in Greece are increasingly attracting the interest of foreign investors. The most sought-after holiday homes in Greece come with a long list of specifications and a high price tag, typically somewhere in the region of €350,000 to €550,000. These figures emerge from a new analysis of the holiday home sales company Elxis-At Home In Greece.
Why a holiday home in Greece and not in Italy?
It appears there are many reasons why foreign investors are choosing holiday homes in Greece over Italy, and it isn’t just for the spectacuular landscape. “A key reason is that the sale prices, even at the higher level of €550,000, remain highly competitive compared to other southern Mediterranean countries. For example, a holiday home in Greece with a private pool, amenities and facilities, close to or with a view of the sea, costs more than 40% more, in countries such as Italy and Spain”, says Mr. Giorgos Gavrielidis, managing director of Elxis.
Buying off-plan
Another factor driving demand for holiday homes in Greece, especially the ones at the higher-price of around €550,000, is the popularity of purchasing ‘off-plan.’ Buying a property before construction is complete often results in a lower purchase price, typically between 15% and 20%. This can lead to higher potential returns on investment and increased property value over time. Some buyers have even seen rapid appreciation, with properties selling for a significant profit within a year of purchase.
High profit re-sale
The Dutch owners of a luxury holiday home in one of the housing complexes promoted by Elxis sold their property for €325,000, reaping a 47% capital gain compared to 2021 when they acquired their holiday home. The only noticeable difference being that they sold the house fully furnished, whereas it was empty when originally purchased.
The numbers speak for themselves
Today, a newly built 80 sqm villa with three bedrooms, two bathrooms and a swimming pool in southern Rethymno will set you back around €327,000. A property with similar characteristics in the same area was sold last year for €280,000, and in 2022 for €265,000. The increase reached 23.3% compared to 2022 and 16.7% from last year. This allows owners to make significant profits within the first year of their investment.
Who’s investing in holiday homes in Greece
The most typical investor persona of those looking to acquire a holiday home in Greece is the 50-65 year old businessman. Another important buying group, are younger buyers, aged 35 to 45, with high incomes looking to enjoy the property but also to later resell at a tax-free capital gain.
Rising prices
Elxis expects the prices of holiday homes in Greece to rise by 8% to 10% in the coming years. A performance that certainly acts as a pole of attraction for foreign investors. “Many of our clients consider that this period is perhaps the last opportunity they will have, to acquire a unique holiday home in Greece, at a very competitive price, which will allow them not only to secure a good net annual return (at least 4%) from its exploitation, but also significant profits from a future resale of it in a few years from today”, concludes Mr. Gavrielidis.
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