Greece has emerged as an ideal destination for foreign buyers of vacation homes, according to an analysis conducted by Elxis, a Greek company based in the Netherlands specializing in holiday home sales homes in Greece.
The recent hike in interest rates has impacted the demand for holiday real estate in recent months, a trend attributed to the lower property costs in Greece compared to other European markets.
“The rise in interest rates has led to a ‘freeze’ in the desire for bank loans among our clients when acquiring a vacation home. This is because the loan interest rate, ranging from 4 percent to 5 percent, essentially offsets the return on investment from the investing in the purchased vacation home,” noted George Gavriilidis, CEO of Elxis.
Gavriilidis pointed out that investors from Western and Northern European countries, such as Germany, the Netherlands, Belgium, France, the United Kingdom, Austria, and Switzerland, now prefer to use their savings exclusively to acquire vacation homes abroad, specifically in Greece.
This approach provides them with quadruple benefits, as outlined by Elxis:
-Protection of their capital from inflation.
-Decent return on investment from the exploitation of the property.
-Combination of income from investment and personal use.
-Excellent prospects for future appreciation of the property in case they decide to sell it after 5-10 years.
The average selling price of a newly built vacation home in Greece, ranging from €300,000 to €350,000, makes it a lucrative option to European investors.
According to estimates based on relevant research, approximately 3 million citizens from Western Europe are currently contemplating investing around €300,000 to €350,000 for both exploitation and personal use.
As a result, the Greek real estate market is becoming increasingly popular among foreigners, reflecting their preferences and positively impacting tourism.
The combination of advantages offered makes Greece an appealing market for vacation homes, transforming it from a buyer’s market to a seller’s market, especially for newly built residences. Projects now have waiting lists of interested buyers eagerly anticipating the announcement of the next development,” Gavriilidis concluded.