Real Estate: They came to the Greek islands as tourists and ended up as investors

Stories of investment with foreign protagonists are increasing and multiplying. These investors are betting on the Greek real estate market and especially that of the islands, after the significant retreat of the pandemic.

According to real estate market players, foreign investors have recently shown a strong investment interest in buying a holiday home, with the aim of commercial exploitation and income generation through their short-term leasing (through Airbnb-type platforms).

According to the president of the pan-Hellenic network E-Real Estates Themistoklis Bakas, the temptation is the relatively affordable acquisition prices that still exist in Greece compared to other countries in the European South, where the values ​​are much higher.

The dynamics that Greek tourism has regained after the pandemic and its prospects make the prospect of investing in a tourist residence particularly attractive. Something they realize when they come for a vacation to the Aegean islands or to any other popular Greek resort.

In fact, many of those who decide to acquire property have visited Greece and have realized its potential, especially in the area of ​​short-term rental in luxury apartments and villas. Another category of buyers are Greek expatriates, who decide to go ahead and take advantage of whatever opportunities they consider are being created.

The upward trend is reflected in the number of transactions but also in the average value.

According to a survey by RE / MAX Estate, last year sales volume increased by 40.4% in the Saronic Gulf islands and by 26.6% in the Cyclades.

A large increase was also observed in the total area of ​​transferred properties on the islands of Andros (+ 115.5%), Serifos (+ 75.3%), Syros (+ 31.5%) and Tinos (+ 50.4%).

The most expensive transfers took place in the Cyclades complex, since the average value of the property increased by 24.8% and the sales volume increased by 26.6%. An increase in the average value of transfers was also recorded in Santorini (252.1%), Sifnos (170.4%), and Folegandros (337.5%).

Investor profile

Of particular interest is the profile of investors that each island attracts. This varies from region to region. The Cyclades and especially the island of the winds (Mykonos), thanks to its cosmopolitan character, have always been a pole of attraction for very rich people from traditional markets, such as Britain, France, Italy and the Middle East.

It is characteristic that the requested prices for a luxury house in Mykonos range from 5,500 € / sq.m. up to 7,500 € / sq.m., while there are cases where luxury villas can exceed 10,000 euros per square meter. In recent years, rich Turks have come to the fore who want to transfer some of their funds outside their country and are mainly targeting villas worth between 800,000 and 1.5 million euros.

Significant interest is again shown for a number of islands such as Santorini, Naxos, Paros, Tinos, Rhodes, Kos, Kefalonia, Corfu, and Zakynthos by many expatriates and finally by institutional investors who are mainly looking for heavily indebted properties or unfinished buildings that they can buy relatively cheaply and complete themselves. Some people choose old properties which they completely renovate, so that they can use them commercially.