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ISSUE 04 APRIL – JULY 2018 www.arencores.com
ARENCORES CHANIA REAL ESTATE AND MARKET INSIGHTS
MAGAZINE
Chania Small Sized Properties and Big Opportunities
Chania properties attract many foreigners Acquisition and ownership of Real estate in Greece
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ARENCOS
Architecture & Engineering Consultancy Services
The Aesthetic Power of Competence
W: www.arencos.com | E: info@arencos.com T: +302821112777 | A: 25 K. Mitsotaki Street, Chania, 73132, Crete, Greece
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Contents Chania properties attract many foreigners High-end villas and hotels catering to needs of high-net-worth individuals put market on new footing.
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Chania Small Properties & Big Opportunities ARENCORES research paper makes it clear that Chania real estate market smallsized sales are expected to rise 32.5 per cent in 2018 with investments totalling more than 350 million, up from 300 million in investments in 2017 and 240 million in 2016.
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Acquisition and ownership of a Real estate property in Greece After selection of the property, the buyer appoints a lawyer in order to perform all the necessary legal searches. The title search takes place at the Land Registry and ensures that the asset in request indeed belongs to the vendor.
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Chania properties attract many foreigners High-end villas and hotels catering to needs of high-net-worth individuals put market on new footing
After a deep alteration in the first half of the
A loss of almost 18 billion euros in construction
decade, the real estate market in Chania has
investments
returned to stability, and tourism sector properties
resulting in a further slowdown in economic
and small hotels are even seeing an appreciation.
activity. However, this period of time prime
At the same time, real estate investors’ interest is increasing and sentiment is significantly improving.
was
observed
within
2008-15,
properties are already present a strong comeback, with high-end villas and hotels at the forefront.
Additionally the prospect of an additional recovery
In a clear sign of the improvement in investors'
of
the
perception of Greece (and with focus on the Cretan
strengthening of the Greek economy's outlook,
real estate market), in 2017 the number of foreign
improved business and household confidence, an
investors eager to invest in Chania real estate has
easing of bank financing conditions, a reduction of
almost doubled since 2016. Investors’ prospects
red tape, the completion of the national cadaster
for Chania in the next five years are significantly
and the consolidation of a stable tax framework.
higher compared to 2016, with 52.8 percent of
the
real
estate
market
pivots
on
The decline of the Greek real estate market began in 2009, mainly driven by the contraction in GDP per capita, the drop in mortgage loans and the
respondents in ARENCORES survey stating that the potential of the Chania real estate market was good or very good.
very high consumption and income taxes dragging
IT has been also observed that the high number of
investments and residential property prices lower.
distressed properties is still one of the most significantly important drivers of the market
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although it still ranks lower than two years ago.
The rise in the number of world travelers in
The tourist industry is currently undergoing a
combination with high hotel rates and demand for
major strategic improvement, while, for the first
low-cost travel has made these online platforms
time, the completion of the second review of the
very popular and boosted apartment prices in
country’s program with the institutions seems to
prime locations and most certainly villas especially
have impacted investors' objectives and strategic
in Crete, Athens, Aegean and Ionian islands.
goals. The top three barriers identified by survey
The top three barriers identified by survey
respondents were the county’s taxation on real
respondents were the county’s taxation on
estate, the lack of funding and bureaucracy. As you
real estate, the lack of funding and
can imagine, bureaucracy is the biggest barrier to improvement. Real estate investors need policy frameworks
to
improve
building
bureaucracy.
permits
procedures, quality, productivity, and time to market. While the blight of bureaucracy seems inescapable and the political risk factor has decreased since 2016, public sector intervention in the completion of transactions is a critical concern for the real estate investors. In
the
meantime
Greece’s
special
residence
program for foreign investors has taken off, reflecting amazingly bright growth prospects as the country
emerges
from
a
deep
and
severe
economic crisis and its growing importance as a gateway to the European Union. In the last year, the number of foreigners awarded a Greek Golden Visa has significantly increased by more than 40 percent since 2016. Launched five years ago, at the height of the country’s economic crisis, the Golden Visa program is now coming of age amid a new wave of investor interest, particularly from countries such as China, Russia and Turkey. There are several reasons for this, from Greece’s sunny Mediterranean climate
Moreover a new real estate market segment is emerging in Greece, targeting high-net-worth individuals - generally individuals with more than 7 million euros in liquid assets. Such real estate developments present a unique opportunity to acquire luxury real estate in Greece in privileged Mediterranean beachfront locations. The most important real estate developments are in Argolida and Kea, while on the so-called Athens Riviera
and high quality of life, to its low property prices.
more high-end properties are being built this
Meanwhile, the rapid growth of short-term rental
villas is concentrated in some of the most popular
vacation industry such as Airbnb, Homeaway, and
Greek tourist destinations, such as Myconos,
Booking has produced a whole lot of income for
Santorini, Rhodes, Corfu, Paros and Chania.
homeowners.
period of time. The wider market for high quality
The villa rental market in Chaniae, which mainly attracts the buy-to-rent investors, is relatively new and still quite immature. However, this is one of the most promising real estate investments.
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Evangelos Apartments Get Away. Get Closer Platanias, Chania, Crete | www.evangelosapartments.gr | +306972282165
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Smart Investing is all about seeing the big trend and leaping on it before everyone else
does. While smallsized properties is a huge opportunity in Chania right now due to the lower prices, it will likely become an even greater opportunity in the next three years.
Chania Small Properties & Big Opportunities
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Introduction
Chania Market trends
With the new ARENCORES MAGAZINE due for publication in the spring, we analyze the market trend of small and medium-sized real estate investments (SMRIs)* in Chania housing market and report on some exclusive analysis of where buyers and investors should go hunting for opportunities.
ARENCORES research paper makes it clear that Chania real estate market small-sized sales are expected to rise 32.5 per cent in 2018 with investments totalling more than 350 million, up from 300 million in investments in 2017 and 240 million in 2016.
Ambitious real estate prospects ARENCORES predicts that the amount of money pumped into Chania real estate market will increase by around 20-30% in the next couple of years. Many buyers and investors have under-allocated in Greece due to concerns of economic slowdown; with clear signs of economic stabilisation, investors are expected to return. Chania will also continue to attract solid
Investments in commercial properties are expected to lead the way, with a 22 per cent increase year-overyear.
56%
interest from all types of buyers because of attractive yields and good real estate opportunities.
of the most attractive small sized properties
are located in the outskirts of Chania.
Focus on small sized properties The results of our research show that there are significant opportunities on small-sized plots and houses. Additionally our research shows that a growing number of buyers from Scandinavia, Israel and
Germany
have
been
interested
in
Cretan
properties, capitalising on lower prices and higher return of investment compared to other real estate markets in Greece. Real estate investors’ main target in Crete has been Chania — one of Greece’s most mature and promising real estate market.
Chania properties sample We analyzed several real estate properties recently acquired (between 20 and 150 residential properties and plots) and found clear evidence of a shift towards smaller properties. The number of this kind of properties in the market has risen by 28% over the last year, while the number of successful sales has risen by 34%.
154 of the most recent properties in Apokoronas, Akrotiri, Chania, Kissamos and Platanias were purchased for less than 100.000 euro.
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SMRIs in Chania real estate market between 2017-2017 April 2017
April 2018
Our analysis identifies areas of Chania which score highly on a combination of three key characteristics: Reliable pricing Easy accessibility Tax benefits
72% of the buyers do not make offers on
overpriced homes.
When you're looking at the underlying real estate, one of the most important criteria (aside from location) is the type of property.
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A combination of the following criteria was used to identify areas with ideal small sized properties. High accessibility
Where should buyers focus their hunt in
High rates of potential return of investment Low Taxes
Chania?
Fare pricing *Subject to site availability. The four variables were weighted equally.
Our research pinpoints areas that combine good accessibility, reliable property pricing, high investment yield and low taxes. The hotspots in red are highly promising but also suggest potential for growth and opportunity in the wider area.
Five areas with small-sized properties currently available for sale Region Kissamos Sfakia Kandanos Apokoronas Platanias Chania
Average small-sized properties availability 2016 - 2017 24% 22% 23% 15% 8% 3%
Minimum price per euro (k) 20 16 17 22 18 40
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Small, Medium and Large properties currently available in Chania.
This positive trend for real estate is combined with the prospect of potential rental returns from the burgeoning short-term rental market, both in Athens and in popular tourism destinations around the country, mainly on the islands. Greece’s tourism industry is thriving, attracting some 30 million visitors a year, almost double the number of 2009. As such, digital rental platforms like Airbnb provide the chance of fast returns on investments. In its newest annual statement on Emerging Trends in Real Estate in Europe, PricewaterhouseCoopers said that “interest in Greek real estate is silently picking up as a number of international investors committed capital in 2017 and put boots on the ground. The sector attracting most interest is hospitality, which is not so related to the local economy. International arrivals have gone up in each of the last three years, and the country is observed as a safe European holiday destination.” Given the focus on small-sized properties, in locations around Chania that are well served by public transport and with reasonable selling price will inevitably attract attention. Our analysis, overlaying a completely new real estate market trend and highlights the best places to start searching for small sized properties. Do you want an inspiration? Check this exceptional property in Keramoti near the popular Elafonisi beach.
Does a small-sized property buying make sense? Greek real estate has recovered its appeal for investors, both overseas and domestic. Last year was pivotal toward this direction, as the economy’s return to growth and confidence regarding the country’s position in the eurozone have significantly improved investment prospects and encouraged many assets to vigorously search for more deals in numerous sectors. Property investment was a major example, with direct overseas investments in real estate amounting to half a billion euros, statistics compiled by the Bank of Greece show.
https://www.arencores.com/property/keramotihouse-for-sale/ You can read the full report on: https://www.arencores.com/arencores-research/
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Pithari plot for sale with exceptional views
160.000 â‚Ź
Property ID:PC0608 Land Size: 1542 sq. m Property Price: 160.000 euro Property Description: This exceptional Pithari plot for sale is located in Akrotiri area only 6 km from the International Airport of Chania, near the popular Akrotiri beaches and just 12 km from Chania. The size of the plot is 1542 sq.m with a building permission of 700 sq.m, making it an ideal investment opportunity for a private luxury villa or small touristic facility. Available online: https://www.arencores.com/property/pithari-plot-for-sale-exceptional-views/ Request more info: info@arencores.com
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Villa for sale in Kabani, Akrotiri, Chania
330.000 â‚Ź
Property ID:HC0604 Plot Size: 4812 sq. m
Property Price: 330.000 euro Property Description: Live out your fantasies in this wonderful property located in Kabani, Akrotiri. From its 4812 sq.m large plot and original openings to its modern furnished interiors, there are plenty of ways to relax and connect with nature. This 300 sq.m. two floor villa with basement is located just 9km northeast of Chania in the Akrotiri area. Available online: https://www.arencores.com/property/akrotiri-houses-for-sale-kabani-villa/ Request more info: info@arencores.com
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Kissamos Villa: Pure Landscape Aesthetics
425.000 â‚Ź
Property Description: The villa is located just outside from the small settlement of Kounoupitsa, 3.5 km to the south of Kissamos that is 55 km from the International Airport of Chania and 40 km from the Chania Old Town. Encompassing an area of 200 sq.m. of luxuries and lavish comforts within a plot of 2005 sq.m., this exquisite villa provides a world of sensations beyond the ordinary. Set in two different levels, the villa enhances all comforts contributing to comfort living and relaxation. Available online: https://www.arencores.com/property/kissamos-villa-pure-landscape-aesthetics/ Request more info: info@arencores.com
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Old Stone House in Drapanias in a Reasonable Price
78.000 â‚Ź
Property ID:HC3201 Property Size: 179 sq. m Property Price: 78.000 euro
Property Description: The old stone house is situated in an elevated position at the edge of the village of Drapanias, in the Municipality of Mythimna, Kissamos. The two story house comprises of one large room in the upper floor of 58 m2. On the ground floor 3 separated large spaces, total of 141m2 . The plot has an area of approximately 147 m2 in which the two story building of 179 m2 is included. The structure is constructed of thick stone walls. Available online: https://www.arencores.com/property/drapanias-old-stone-house/ Request more info: info@arencores.com
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ALTA LINEA MARKANTONAKIS
33 Konstantinou Manou Street, Chania, 73134, Crete Phone: +30 2821087731
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Acquisition and ownership of a Real estate property in Greece
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Acquisition of real estate in Greece Greece
has
become
a
favourable
investment
destination in the last few years, mainly because of its natural beauty, mild climate and geographical position, but also because of a significant drop in prices following the financial crisis that emerged after 2010. Investors from all over the world are now looking at Greece as the new ‘hot’ investment destination and rush to benefit from the abundance of quality real estate available at affordable pricing. Many buy as end
There are various ways of acquisition of real estate in
users and others for buy-to-let. Greece is a European
Greece. The ones that mainly concern investors are
Union Member State abiding by the rule of law.
the two following: Acquisition by contract, the buyer
It is also a member of the European Monetary Union enjoying all the benefits that derive from the Euro as a common currency without risks of devaluation or
and seller appear before a notary public and sign a deed which is subsequently registered at the local cadastre or land registry.
inflation volatility. The laws pertaining the acquisition
Acquisition of property through public auction. As of
and ownership of real property are provided by the
2017 the Greek State has implemented electronic
Hellenic
auctions. Greeks and foreigners (whether natural
Constitution and the
Civil Code. Most
properties in Greece are freehold.
Legal framework
persons or legal entities) can subscribe online. The procedure is open to the public and the properties offered are easily accessible via a weekly journal.
The process of acquiring real estate After selection of the property, the buyer appoints a lawyer in order to perform all the necessary legal searches. The title search takes place at the Land Registry and ensures that the asset in request indeed belongs to the vendor and that it is clear of any encumbrances (such as mortgages, liens, foreclosures etc). The lawyer also checks the suitability of the asset Rights in real estate Real estate owners in Greece may
and if this is situated in areas where prohibitions or
have different rights.
restrictions apply.
Full ownership (absolute or joint) Bare ownership (absolute or joint) Usufruct (absolute or joint)
Issuance of a tax number. It is a requirement of the Greek State that every transacting party (natural person or legal entity) has its unique tax number
It is essential that the buyer establishes which (among
before acquiring real estate. • Technical survey of the
the aforementioned) is the right of the vendor to be
property. This is not a compulsory stage, but it is
transferred in every transaction, in order to ensure
highly recommended as planning and or structural
that the value of the real estate is reflected in the
issues may occur that could render the sale invalid or
rights that come along with the sale
the investment poor. • Payment of stamp duty (transfer tax). Currently at 3% of the value of the transaction.
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Taxation
Acquisitions outside urban zoning. Special attention must be paid to plots which happen to be outside city or major housing estates as they often have limitations with regards to the development capacity they offer and in most cases plots cannot be divided in smaller segments. Acquisitions on the coastline. Development of real estate that is situated close to the beach or generally the shore may be prohibited or allowed under very
Ownership of real estate in Greece is subject to annual tax (ENFIA) which is calculated based on the value of
specific terms set by the State. Acquisitions in areas where antiquities are found.
each property and in conjunction with the total value
Development may be prohibited or allowed under very
of the assets one may have in their portfolio. Currently
specific terms in areas where historic monuments may
the annual tax is payable in 5 installments and it is
be located. In most cases, a special permission is
applicable in all types of real estate assets.
required by the Ministry of Culture’s competent
This kind of tax applies to both natural persons and
directorate.
legal entities regardless if they are resident and/or
Acquisitions in
have their registered seat in Greece or not. Property
beauty (Natura 2000 Network) or under a special
based income (short or long term rentals, Airbnb, long
environmental protection regime. Both acquisition
term leases etc) are subject to taxation. Natural
and development of real estate in such areas may be
persons who benefit from rental income are taxed at
blocked by the Ministry of Environment due to
various rates (thresholds are in place depending on
restrictions that may apply.
the amount of revenue produced). Legal entities owning real estate assets are taxed differently as the rental income is regarded as revenue and is subject to 29% corporate tax.
Important parameters for consideration prior to the acquisition
As with every other country, certain restrictions apply investors decide to buy real estate in Greece:
areas
of outstanding
natural
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Agia Marina Prime Positioned Plot for Sale
150.000 â‚Ź
Property Description: This exceptional 798 sq.m Agia Marina prime plot of land for sale is located within walking distance of tavernas, cafes and some of Chania’s best hotels, this land is in a prime position. Due to its setting within the planning zone, considerable construction of 400 sq.m is permitted, making it an excellent commercial investment proposition as well as a perfect plot to build an individual property. Available online: https://www.arencores.com/property/agia-marina-prime-plot-of-land-for-sale/ Request more info: info@arencores.com
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Kournas Lake Family House for Sale
120.000 â‚Ź
Property Description: The Kournas lake family house has a building area of 66sqm within a plot of 155,77 sqm. The ground floor comprises of two bedrooms and a bathroom. The plot is enclosed in low stone walls and a gate to the parking area and property. On the first floor an open plan fully fitted kitchen, dining room and living area along with a small bathroom are situated. The large veranda with the tiled pergola has an amazing panoramic view to the high mountains, the lake of Kournas and the sea. Available online: https://www.arencores.com/property/agia-marina-prime-plot-of-land-for-sale/ Request more info: info@arencores.com
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ARENCORES CHANIA REAL ESTATE EXPERTS
25 K.MITSOTAKI 25, CHANIA 7332, GREECE | P: 2821112777 | E: info@arencores.com | W:www.arencores.com
ARENCORES Magazine is produced for general information only. Whilst every effort has been made to ensure the accuracy of this publication, ARENCORES accepts no liability for any loss or damage of any nature arising from its use. At all times the content remains the property of ARENCORES under copyright and reproduction of all or part of it in any form is prohibited without written permission from ARENCORES. Date of publication: May 2018