Southeast Home Mortgage
The Greek Holiday Home Market: Current and Future Trends
A rising market on a human scale.
Since the Greek property opened for foreign buyers in the early 1990's, thousands of homes in Greece have been coveted and ultimately purchased by British, German and other Western European buyers. During the same period, the Greek property market has had steady growth of 8-12%. The Greek economy is such one of the fastest growing in the euro zone, and thanks be its stable and predictable economic growth, the real estate market, may be invoked to grow at a realistic pace as well, rather than in extreme recovery and drastic reduction is too often seen in up-and-coming markets.
Even pocket change is hardly enough to buy property in Greece, villas here are, by comparison, still an excellent value for overseas buyers who are looking for that ray of sunshine and down-tempo lifestyle that goes with it. These exist in abundance, in fact, Greece the perfect alternative to the traditional Mediterranean "favorites": it is accessible, safe, beautiful, loaded with character, and prices in like-for-like Comparisons of Greek and French or Spanish property can be up to 50% lower. There is a large selection of apartments for sale, but the massive housing development is not the norm. In most cases retain homes in Greece their local style side, usually the most sought after locations for holiday homes are islands and smaller villages, where because of the building rules built properties in the local traditional style. And for fans of "green" architecture, gives the sublime climate in Greece is the perfect basis for the bioclimatic structures that maximize the benefits of solar and wind to create energy-efficient, sustainable homes with reduced maintenance costs.
Since a significant percentage of second home buyers from Western Europe, it comes as no surprise that a lot of new construction is tailored for these buyers' preferences. The concept of homes that are "ready to wear "has caught on that journey times between Greece and the rest of Europe has diminished and popping over to Greece for a weekend is no longer utopia, full equipped homes, sold turnkey with everything from furniture to bedding and cutlery sets, ensure that the lucky owner can spend the entire weekend at the pool rather than curtain-shopping the house. Buy similar concept-to-let properties are starting to take shape, while property management and guaranteed rentals are in an early phase kinds, they are becoming more prevalent in, primarily, tourist-savvy locations. This is an important feature given the fact that homes usually belong to absent owners wondering how to get the most out of their investments, while at the same time enjoying the peace of mind that comes with knowing their property looked after while they are busy with work to fund it.
It is rather unfair that Greece, one of the most mountainous countries in Europe, has settled in people's collective conscience, strictly as a Sea-and-sun destination. As a result, the overwhelming demand, the foreign buyers of homes, with seafront properties carrying the respective price tag and give confidence to the global property market's "Location, location, location "mantra. Still, internal traditional and newly built properties abound and they are an excellent alternative for those who can not afford a seaside property, but has not not mind driving to the beach and longs for an insider's take on the famous relaxed village life. After all, even on the larger islands, the beach is never too far away.
What's next?
Is this thriving market on the way to a plateau anytime soon? Well, as in most situations, the answer is "It depends". Currently, Greece is basking in the limelight. In 2006-tourist season ended with a record number of tourists visiting the country (a 8.5% increase compared to last year, according to The Economist), a promising statistic for a slower tourist inflow in the previous few years, and despite the lack of a long-term marketing campaign nationally. It is imperative that Greece is not wasting any time exploiting the momentum of the highly successful 2004 Olympic Games and the subsequent, priceless, visibility abroad. Furthermore, developments in Greek Real Estate is teeming with promise. Demand for homes is projected to outnumber supply, keeping property prices rising, and real estate professionals expect holiday prices rise up to 10% over the next few years. It is no coincidence that so many large development companies with solid track records in commercial and urban real estate has dived into home projects, their high quality development with a western flair in selected locations designed to attract discerning foreign buyers and investors.
Improvements in infrastructure and construction, mainly because of the 2004 Olympics, has been enormous. Thanks to new transport and road network travel times have decreased and previously remote areas are within reach. Soon to be finished, is one of the largest road projects in Europe, the Egnatia highway in the northern Greece, a gateway to southeastern Europe and the Balkans, it will provide a quick East-West link. Other significant developments with a favorable impact on the Greek holiday home market include:
§ A nationwide Land Registry in progress, which after completion, will greatly simplify the home buying process § ADSL / Broadband Internet is widely accessible and allow individuals to conduct business away from home § Mortgages with low interest rates are also widely available to both Greek and foreign buyers § Improvements in the entertainment industry, such as golf courses, which are gaining in popularity and becomes very salable fulcrum too many new developments
Naturally, all that glitters is not gold. Recently introduced tax laws (Capital Gains and / or Value Added Tax on selected properties) can, according some have a deterrent effect on real estate purchases, whether this will be the case is still uncertain. Moreover, Greece must keep working to remain on the map competitive Mediterranean real estate. The truth is that with the exception of a marketing campaign around the time of the Olympics, Greece is unfortunately not advertised enough, but its list of charms is long:
§ Clean, beautiful beaches § A perfect 4-season climate § low crime § A stable economy and long-standing EU membership § Lack of internal strife § Ancient history and a world renowned cultural § An all-around very high quality of life § untapped potential of winter tourism
An overseas homebuyer usually visits Greece and only falls in love with it as a tourist. More tourists equals more homebuyers is a simple logic.
Equally important, if service levels, the need for integrity and professionalism. The real estate sector is no exception. Estate broker experience, professional affiliations, and language / communication (Especially for foreign buyers) are crucial to a smooth, fertile homebuying experience. The good old "word of mouth" way to find a reliable estate is still probably the best way. The Hellenic Association of Realtors, the only official body recognized by the CEI (European Confederation of Estate Agents), is another recommended starting point. After all, for most of us buying a home purchase of a lifetime; skimping on our homework at the last minute is absolutely the wrong approach!
About the Author
Katerina Roussou is a freelance writer based in Athens, Greece; she writes copy in English and Greek for the advertising industry and the web, as well as lifestyle and real estate articles. For more information please visit www.makebelieve.gr/kr