Winter Homes Market in Greece Sees Significant Downturn in Prices

In Mykonos, the average price per square meter for high-spec properties has now soared to €10,000, marking a staggering 166% increase from its previous high in 2008, which stood at €3,750 per square meter. However, in Arachova, known as the “winter Mykonos,” situated in the mountainous region of Boeotia, home prices tell a different story. Prices that were at €3,000 per square meter in 2008 have struggled to reach €1,600 per square meter today, reflecting a substantial decline of 47%.

According to a recent study conducted by certified appraisers at Geoaxis there is a significant and widespread decrease in asking prices for winter homes in prominent areas compared to their peak in 2008. Arachova, Agios Athanasios Pellas, Karpenisi, and Trikala Corinthias exhibit an average decline of 56%.

In specific areas, Agios Athanasios witnessed the most considerable reduction, plummeting from €3,301 per square meter in 2008 to €1,053 presently, marking a staggering 68% decrease. Karpenisi and Trikala Corinthias have seen prices drop to €1,008 per square meter (from €2,308) and €1,097 per square meter (from €2,250) respectively, indicating declines of 56% and 51%. Lastly, Arachova, which held prices at €3,000 per square meter in 2008, now struggles to reach €1,594, marking a 47% decrease.

Contrary to national trends where housing prices rose by an average of 11.9% in the third quarter of 2023 compared to the same period in 2022 (according to data from the Bank of Greece), winter home prices in Arachova, Boeotia, and Karpenisi, Evrytania, experienced a modest rise of 2.31% and 1.61%, respectively.
Prices remained stagnant in Agios Athanasios Pellas and Trikala Corinthias during this period.

Yiannis Xylas, founder and head of Geoaxis, highlighted, “The extremely positive summer season combined with high occupancy rates during all holidays and weekends this year has not translated into a trend regarding winter homes, resulting in no significant progress in values. The absence of an extended winter, high loan interest rates, and significant construction and energy costs are negatively impacting this particular market.”

The forecast for the housing market in 2024 remains bleak, with no signs of improvement. Factors like increased loan interest rates, soaring energy prices, and rising construction material costs, compounded by conflicts in Ukraine and Israel, continue to weigh down property values.

Expectations of further price drops are causing potential buyers to hesitate, adopting a cautious approach.

Despite significant price declines, thousands of homes remain unsold, with demand described as consistently weak by analysts. Developers who ventured into constructing luxury homes above 1,500 euros per square meter are now unable to attract buyers, even when selling below cost.