holiday market residences in Greece it is emerging as a highly profitable sector of the economy with strong demand, despite the fact that tourism revenues have declined this year compared to last year.

This conclusion was made by the correspondent of the financial inspection Handelsblatt in Athens, Gerd Heller, according to the information he gives in his article.

As an example, he cites the luxurious villas Costa Navarino, Navarino Residences. Residence prices start at 2.8 million euros and include a 350 m2 house plus a large plot.

Demand for real estate on the Athenian Riviera

“Market experts are suggesting that this has something to do with the coronavirus pandemic,” notes a German columnist who reports the opinion of Giorgos Petras, head of the Engel & Völkers real estate agency in Greece.

“Our clients are looking for safety and security, many tourists who used to go to luxury hotels are flirting with their holiday home,” says Mr. Petras, who explains this by saying that in relation to population, Greece has the fewest cases and the least number of deaths from all Mediterranean countries.

“As Greece has left behind the financial crisis and a decade of recession, the real estate market is on the rise,” the German journalist continues in his article.

“According to the Central Bank of Greece, last year foreign buyers of real estate brought 1.45 billion euros to the country, compared to 2016, the amount increased tenfold. Growth has continued this year, although the pandemic temporarily caused uncertainty in the first two weeks of the pandemic, but according to George Petras, demand in June is still 23% higher than last year, the number of interested parties in Germany increased by 50%.

The German observer cites the calculations of the Central Bank of Greece, according to which real estate prices rose by 7.9% compared to last year.

“But despite the latest price increase, the overall price level in Greece remains low compared to other Mediterranean destinations. This makes investing in Greek holiday property interesting. Real estate consultancy Algean Property has calculated that properties in Mykonos generated a gross return of 8.2% for investors last year, compared to an average of 6.3% in Santorini. Such profitability this year is unthinkable due to the coronavirus, but the trend will not suffer in the long run (…) In addition to the islands with good infrastructure, demand is also fixed on the so-called Athenian Riviera, where luxury apartments are built mainly for foreigners, for whom the area is suitable from because of its proximity to the center of the capital,” concludes the newspaper.

What is attractive about Greece?

“Thanks to huge investments in infrastructure projects, even remote areas are now easily accessible. Fraport has been operating 14 Greek regional airports for five years and has also radically modernized previously abandoned airports. The 5G network is being installed in almost all tourist areas and along the main road arteries. The expansion of the fiber optic network is also proceeding at a rapid pace, which is important for digital nomads looking for an office under the sun,” the report says.

It is added that, in particular, investments have increased by 70-80% compared to last year in the southern islands of the Aegean Sea, such as Paros, Rhodes, Patmos, Mykonos and Tinos.

Elsewhere in the lengthy report, it notes: “Residential property in Greece is in demand not only as a holiday home, but also as a retirement home. Relatively average prices compared to other Mediterranean countries make Greek real estate interesting for capital investment.”

But as the report notes, “Those who flirt with the purchase would do well not to waste too much time because tax conditions are favorable so far. Until the end of 2024, the 24% VAT, which is usually paid when buying a new property, is deductible. The transfer tax is only 3%. Along with brokerage, attorney, notary and cadastral fees, additional purchase costs range from 7 to 8.5% of the purchase price.”