The good climate and lower real estate prices in the Greek islands compared to competitive destinations across Europe have sparked the interest of foreign investors in a Greek holiday home.

The large “reservoir” of buyers includes wealthy retirees looking for a second home by the sea and investors looking for profits or striving to obtain a residence permit under the “golden visa” scheme. Greek buyers are in the minority.

For these reasons, the common denominator of which is Greece’s explosive growth as a holiday destination as well as telecommuting, there has been unprecedented mobility in recent years to the country’s top holiday destinations.

“We have never seen such enthusiasm for the South Aegean before. In 2021, prices have risen by about 10%. Islands that were once left without interest are now in demand. For many, Greece is synonymous with stability in the midst of global destabilization. Therefore, according to our estimates, this year the demand and prices for housing in the southern Aegean will grow even more,” says Giorgos Petras, Managing Director of Engel & Völkers Greece.

“Interest in real estate in Mykonos, Paros, Crete, Peloponnese, and also in Athens is especially high from America, which, of course, is due to the fact that our company has a long-term presence there. Germany, Sweden and Bulgaria are also showing serious interest in Northern Greece,” says Nikos Manomenidis, director of the eXp Realty digital brokerage network, which has been present on the Greek market for several months.

It is estimated that on the islands of the South Aegean Sea, which attract the greatest investment interest, sales increased by 80% compared to 2019, and the demand recorded by requests in brokerage networks increased by 200%.

Top Destinations

According to Engel & Völkers, who have mapped the holiday home market, the top ten South Aegean islands in high demand are Mykonos, Rhodes, Paros, Syros, Symi, Santorini, Patmos, Naxos, Andros and Tinos.

Prices seem astronomical, but compared to high-end residence equivalents in European holiday destinations, they remain competitive.

On Anemone Island, one of the most expensive villas sold by Engel & Völkers in the last twelve months, at a price of 3.85 million euros, is located near Agrari and has an area of ​​560 square meters. The brokerage network also put up for sale a villa 5 kilometers from the city of Mykonos for 7.5 million euros. The high price of the residence in question can be justified if we take into account that the property of 540 square meters has seven bedrooms, an 18-meter pool, a garden and a view of the island. Delos.

More broadly, the most expensive homes in good locations and what brokers prefer to call “exclusive” properties are in Mykonos and Paros, and range on average from 2 to 5 million euros and from 1.5 to 3. 5 million euros. respectively.

In Rhodes, asking prices for quality beach houses range from 1 to 2.5 million euros. While these prices seem astronomical compared to high-end European holiday destinations, they remain competitive, industry professionals insist.

Most homebuyers in the Cyclades and Dodecanese are foreigners. Almost one in two is German, followed by the Swedes, Austrians and British. Buyers from France, Italy, Spain, the USA, Israel and Greece account for a total of 30% of transactions.

High scores

According to experts, the profitability of a country house is higher than with long-term rental apartments, and is of increased investment interest. Return on investment (ROI) for properties rented out most days of the summer season ranges from 5% to 10% in Mykonos and ranges from 4% to 7.5% and 5% to 8% in Paros and Rhodes respectively.

According to a recent survey by real estate chain Re/max, capital gains from short-term rentals, or more broadly tourist exploitation, strongly influence the decision to buy a vacation home, seven out of ten real estate agency offices found. real estate agency. The fact that, until at least 2016, asking prices have fallen 50% since the start of the financial crisis also contributes to the vacation home’s promising returns.

Because of these attractive earnings, new players are looking for opportunities in the Greek real estate market, especially after the very large reduction in purchases and sales by the Chinese thanks to the golden visa.

This trend is evidenced by the fact that India, which has a significant number of able-bodied citizens, belongs to the markets where not only Greek, but also foreign brokers seek to make deals. “There is a strong movement from foreign brokers who have a source of interested buyers from India,” emphasizes Mr. Manomenidis. The ‘bridge’ with the Indian market seems to have already been completed thanks to tourism, as this year the interest in Greece and, consequently, the number of orders from Indian tourists has increased significantly.

from 2 to 5 million euros there is a villa in Mykonos, and from 1.5 to 3.5 million – the corresponding purchase price in Paros.

From 1.5 million euros and above, a holiday home in Santorini is valued, while in Rhodes the price ranges from 1 to 2.5 million euros.

200% demand for buying a home in the South Aegean increased in 2021 in line with market factors, with sales over the same period showing an 80% increase.