Short-term rental is evolving into a decisive factor for the holiday home market in Crete, as more and more foreign buyers no longer see the property only as a vacation home, but also as an investment with income potential. As pointed out by the CEO of Elxis – At Home in Greece, Giorgos Gavriilidis, to BnBNews.gr, the picture of the market has changed noticeably compared to the past, with Crete at the forefront of this shift.
From “philhellenes” to investors
Twenty or twenty-five years ago, as he notes, “foreigners who bought a home in Greece were mainly people with an emotional bond with the country. They chose Crete for long periods in spring or autumn, often avoided the peak months, and did not have the commercial exploitation of the property as a basic priority.”
Today, according to Mr Gavriilidis, this profile has changed. Greece remains a strong holiday destination, but it has also acquired an investment dimension. New buyers, especially those aged 25 to 40, now compare the country with traditional markets such as Spain and France and see it as an attractive option for buying a home with a return perspective.
Why Crete stands out
Why Crete stands outCrete, as the CEO of Elxis mentions, attracts the greatest interest from foreign holiday home buyers. In the company’s sales, the island represents about 30% to 40%, a share that confirms its long-standing momentum.
The reasons are many, as Crete has strong accessibility, many air connections, large size, cities, infrastructure, and different options for the buyer. It is not a small island that operates exclusively seasonally, but a destination with life, services, and possibilities for a larger part of the year.
At the same time, the quality-to-price ratio is considered one of the key advantages of the market. Compared to other popular island destinations, Crete continues to offer more affordable options, without lagging in tourism demand or investment potential.
Short-term rental as a key purchase motive
The new generation of buyers is not limited to personal use of the property. On the contrary, as Mr Gavriilidis notes, the usual practice is to use the home for part of the year and to offer it for rent during the summer months.
Utilization happens mainly through platforms such as Airbnb and Booking.com, but also through management companies that take on promotion, bookings, and the operation of the property. In this way, short-term rental does not function as a complementary activity, but is included from the start in the way the investment is calculated.
What a house with a pool yields
According to the CEO of Elxis, there is now a relatively clear picture of rental prices in Crete. A detached house with two or three bedrooms and a private pool can yield about €150 per night for each bedroom.
In practice, this means that a two-bedroom house can be rented for about €300 to €350 per night. Similarly, a three-bedroom home can reach about €450 per night. On a weekly basis, such a property can approach income in the range of €2,000.
These amounts explain why short-term rental has acquired such an important role in the market. The buyer does not calculate only the capital appreciation of the property or personal use, but also the income it can generate in a strong tourist season.
Purchase prices in Crete
Purchase prices in CreteOn the purchase side, Mr Gavriilidis states that a modern detached house with two bedrooms and a pool in Crete is around €300,000, a little above or a little below depending on the area and the characteristics of the property.
In terms of price per square meter, prices are roughly around €4,000 per sq.m. These are levels that, according to him, remain competitive compared to other islands. For example, in destinations such as Corfu, similar properties can be quite more expensive.
Organized buyers from Western Europe
Mr Gavriilidis distinguishes the behavior of Western European buyers from more local phenomena recorded in other areas of the country. As he notes, Elxis customers from Western Europe operate in a more organized way, declare income from rentals, and utilize properties through platforms or management companies.
This shows that the market is not driven only by opportunistic decisions, but by buyers who place the property within a more mature investment plan. Short-term rental is treated as a structured activity, with professional organization and specific return expectations.
Crete as a complete investment market
The case of Crete shows that short-term rental is not simply a parallel activity around the holiday home. It is now one of the main reasons foreign buyers choose to position themselves in the island’s market.
The possibility of personal use, the tourism momentum, satisfactory returns, and comparatively competitive purchase prices create a model that attracts an increasingly investment-oriented audience. Thus, Crete is establishing itself as one of the strongest destinations for buying a holiday home in Greece, with short-term rental acting as a catalyst for the new phase of market growth.
