Real estate: The “time” of the country house – Up to 306% more demand

According to today’s data, the country house in our country, especially in the popular tourist destinations, but also in the destinations that emerged in the midst of the pandemic, is “coming back” dynamically and is among the high-yielding properties for the domestic real estate market.

“Attractive returns and a lot of sun” is the title of an extensive article by Handelsblatt about the real estate market in Greece. This time the Dusseldorf newspaper focuses on a special category for discerning buyers, luxury holiday homes , especially on the islands.

The country house is making a strong comeback

The country house in Greece in the midst of monumental years recorded losses of even more than 50%. According to today’s data, the country house in our country, especially in the popular tourist destinations, but also in the destinations that emerged in the midst of the pandemic, seems to be “coming back” dynamically and to be among the high-yielding properties for the domestic real estate market.

At the same time, according to the Bank of Greece , in the period 2018-2021 real estate prices increased by 30%, on average. However, they remain by 1/3 below the levels of 2007, the year in which the global financial crisis began, which led to the Greek debt crisis and the collapse of the real estate market . This is also one of the reasons why we expect a further rise in prices, which makes investing in holiday homes in Greece attractive.

The vacation home market, due to the high demand recorded this summer in the short-term rental industry, +232% compared to 2021 in the summer months and +26% increase in occupancy compared to 2019 according to AirDNA, which was and the time “record” for the tourism industry of our country, “promises” high returns for the future.

Buying a country house “promises” high returns for the future.

Big increase in demand

Specifically, according to AirDNA, the demand until March 1, 2022 for the period June – September showed an increase by:

• 306% in Crete,
• 302% in the Dodecanese,
• 248% in Athens,
• 233% in the Cyclades,
• 230% in the Ionian Islands,
• 216% in Thrace,
• 215% in Sporades,
• 188% in NE Aegean Islands,
• 157% in Epirus,
• 153% in Thessaly,
• 153% in the Peloponnese,
• 132% in Macedonia, and
• 109% in Central Greece.

The holiday home in connection with the short- term rental industry are key “ingredients” of the new tourism model we are already experiencing.

 

Occupancies in the summer months in high-end holiday homes in the Cyclades reached 95%-97%, while rental prices in many cases exceeded the data of 2019. At the same time, high occupancy rates were recorded in all of our country’s tourist destinations at the time properties registered on short-term rental platforms recorded daily increasing trends – new registrations, compared to previous years.

In the stronghold of the tourist industry, the island of the winds, Mykonos, the cost of buying a holiday home ranges from €5,500/sq.m. up to €7,500/sq.m., while there are also cases where a villa with all the luxuries can exceed €10,000/sq.m.

Purchase cost

The cost of buying a holiday home in Greece depends on the destination. In the stronghold of the tourist industry, the island of the winds, Mykonos , the cost of buying a holiday home ranges from €5,500/sq.m. up to €7,500/sq.m., while there are also cases where a villa with all the luxuries can exceed €10,000/sq.m.

In Santorini , the prices for a house without a view of Akrotiri can be bought from €3,500/sq.m.-€4,000/sq.m., but depending on the view, it can reach up to €5,000/sq.m.-6,000 €/sq.m. Whereas, a house in Caldera with a view costs over €10,000/sq.m.

At this point we should point out that the purchase of a holiday home in Greece is a “cheap” affair with yields reaching even 7.5%-8% in the popular destinations of the Cyclades , for any interested foreign buyer, if we compare the asking prices sale with other Southern European countries.

 

The coasts of the Peloponnese and especially of Messinia and Argolis register a strong investment interest from both domestic and foreign investors. The emerging Achaia and Ilia, with a coastline of more than 60 kilometers and natural diversity, may in the near future be the “Milon of Eris”.

 

The coasts of the Peloponnese and especially of Messinia and Argolis register a strong investment interest from both domestic and foreign investors.

30-40 billion within 10 years

Tourism and domestic real estate and in particular the holiday home sector can “participate” in the Greek economy with 30-40 billion euros within 10 years, if we calculate that the 0.1% per year and not more that applied before covid -19 times in the developed countries of Europe, tourists invested amounts of €120,000-€150,000 in the country’s country house.

 

The high demand and high yields are an opportunity for our country to activate the business with the code “Country House”. The benefits for the Greek economy will be manifold through indirect and direct taxes. While, it will contribute positively to the economy of each region both through investments and through the increase of jobs.