Greek islands in high demand and luxury flies thanks to the Golden Visa Programme

In Mykonos the stock of second homes, Real Estate Scenarios report, has reached 2,300 units and in 2023 893 licences (called Eot) were issued by the Greek Tourist Board to rent out one's villa or home to foreigners or Greeks in general. The greatest pressure points for demand, both buying and renting, are all close to the city centre, which for several years now has become the real competitor in summer to the Ibizan nightlife.

And the purchase prices of other types of houses? In inland areas, speaking of prestigious homes, they range from 5,400 to 7,200 euro per square metre, but moving to the sea, with a view, the prices rise to 8,800-12,300 euro per metre, with an average for the island, according to Scenari Immobiliari, of 8,450 euro per metre. Luxury villas, however, cost 28,500 euro per metre. The increase, from the end of 2022 to the end of 2023, was 11.3%.

The other queen of the Greek island market is Santorini. A 40-minute flight from Athens, the volcanic island in the Aegean Sea is still, despite increasing tourism, a very attractive place that attracts thousands of travellers every year.
The demand is for all the areas where villas and dwellings have been built on the edges of the Caldera, or for renovated 'cellars'. The latter are buildings constructed in past centuries and then restored into luxury villas, often equipped with gardens, a swimming pool and various terraces, as their structure is often split over two or three different floors, with the iconic small infinity pools overlooking the Caldera.

One of the most popular locations is the north-western coast of Santorini, where the small village of Finikia is located, which can be reached on foot from Oia, famous for its sunset. Cars are not allowed and the village is known for its peaceful atmosphere, away from the nightlife that has now also taken hold in Santorini. "The villas cost between 900 thousand and 2 million euro on average, but in the case of the most exclusive residences, the purchase price exceeds 5 million," specify Scenari Immobiliari. "Renting a luxury villa in Santorini costs more or less the same as in Mykonos, i.e. between 7 and 10 thousand euro per week. The 'high end' products go up to over 20 thousand euro per week. It is estimated that the average yield obtainable during the summer months is 5.3 per cent before expenses and taxes. In more detail, the prices of valuable houses in the interior of the island range from 5,300 to 7,300 euro per metre, while the seafront starts at 6,200 euro per square metre and goes up to 11,200 euro per metre. The average change in prices over the past year has been +10.6 per cent.

But in Greece there are the beauty of 230 inhabited islands, from Rhodes to Cefalù, passing inevitably through the two big ones, Crete and Rhodes, and the beautiful Corfu. The 'big ones' can be an excellent shopping alternative, with much more on offer and therefore more affordable prices.

One of the most promising areas of the Greek real estate market according to many local agencies is the island of Crete, which is turning into a novo Eldorado of real estate. Thanks to massive investments in tourism and infrastructure, Crete is slowly becoming 'the next big thing' in Greece. Positioning itself as the most desirable Greek island for real estate investment, the island offers a unique combination of natural beauty, cultural heritage and a fast-growing tourism industry, making it an opportunity for investors.

For an investor, it is important to know that rental yields can exceed EUR 15 per square metre per month (on an annual basis) in the main areas of the island. In particular, the city with the highest rental costs is Chania, a fascinating mix of Venetian, Turkish and Greek influences, evident in its architecture, cuisine and atmosphere. The old town of Chania, with its narrow streets, attracts thousands of tourists for its historic Venetian harbour and unique maritime museum. Chania's ability to seamlessly blend the old and the new is its true charm. Specifically in the historical harbour district of Chania, rental prices exceed EUR 15 per square metre. Nea Chora in Chania ranks second, with rental costs exceeding EUR 10 per square metre in Halepa and the Court of Chania.

In terms of performance opportunities, Chania is followed by Heraklion, the capital of Crete. Heraklion presents itself as a vibrant metropolis, harmonising modern infrastructure with a rich history. Strolling through the city's ancient streets and discovering landmarks such as the iconic Heraklion Fortress or the Archaeological Museum is a must for all visitors. The city pulsates with energy, offering a dynamic urban lifestyle, making it one of the best hubs for real estate investment in Greece.

Rethymno follows right behind Heraklion and Chania when it comes to profitable properties. With a more relaxed and romantic atmosphere, characterised by its well-preserved medieval centre, where the Venetian Harbour, the Fortress Castle and the picturesque Rimondi Fountain showcase the city's historical charm. The attraction of Rethymnon lies in its tranquil atmosphere, making it an ideal destination for those seeking a slower pace without sacrificing cultural heritage.

In terms of values, the downward trend dominated the real estate market in Crete until 2019. Now, prices are rising, but if we compare current property costs with the peaks of 2011, we will see that the market is still far from full recovery.

According to Scenari Immobiliari Crete offers houses with a sea view starting from 3,700 euro and up to 5,600 euro per square metre (inland it ranges from 2,700 to 3,800 euro per square metre) and price increases in 2023 will be 9.6 per cent, with an average value of 4,000 euro per metre.

In Rhodes, speaking of luxury homes, the sea front is between EUR 2,900 and EUR 3,700 per square metre, while the interior ranges from EUR 1,900 to EUR 2,500 per metre: the average price according to Scenari Immobiliari Immobiliari is EUR 2,800 per metre, with an increase during 2023 of 8.6 per cent.

Rhodes has a tourist and real estate secret that has attracted investors from all over the world (including members of Pink Floyd), the beautiful village of Lindos, where good buying opportunities can still be found today. According to local agencies, the average price per square metre is still at EUR 2,091, an increase of 2.15 per cent per year (as of May 2024). The average rent for the same type of property is EUR 6.23 per metre per month. Luxury obviously has other prices.

For example, the Spitogatos agency advertises the beautiful historic villa once owned by Pink Floyd, now for sale. Now completely renovated by a renowned architect, the result is a combination of tradition, avant-garde and hints of the original art-deco. The main Italian-style villa is built on two levels. The ground floor is divided into two parts: the eastern and the western part, which includes two bedrooms, two bathrooms and two small storage rooms. In total, 350 sqm of house, six bedrooms, seven bathrooms, in Lindos, for sale at €3,950,000.

However, it is possible to buy a flat, also in Lindos, of 104 square metres with a terrace and sea view (from a distance), with two bedrooms and two bathrooms, for 260,000 euro.

The beautiful Corfu actually has a two-speed market. On the one hand, that of luxury properties, driven by the Golden Visa, with stable and rising prices; on the other hand, that of cheap houses, which sees values falling by up to 15 per cent. "A drop of up to 15 per cent is evident in the sale prices of medium and low category properties," local media reports explain, "in contrast to luxury properties, which are selling up to 10 per cent higher, thanks to demand mainly from customers from abroad with high budgets. The downward push is due to the 60% drop in demand. "The economic pressure experienced by Europeans is now also reflected in our region's real estate transactions for mid-range properties, ranging from 250,000 to 600,000 euro, as well as for those below 250,000 euro," they say. "Experienced real estate agents in Corfu emphasise that these clients have decreased by 70 per cent. On the contrary, buyers with 'golden portfolios' from America, Israel, Australia, Arab countries and China seem to have taken over, not hesitating to spend generous sums to acquire luxury villas and land by the sea'. Moreover, for the first time, there is strong interest in Corfu from a new market, Turkey, which until now has mainly focused on the Aegean.
Speaking of luxury, for example, the Spitogatos agency offers a villa with a spectacular sea view, 266 square metres, at 1.95 million, but also a small detached house of 86 square metres, with an infinity pool and sea view, at 380 thousand euro, newly built and with excellent rental possibilities.