Market Report 2023 - Second Home

Introduction

The real estate market for second homes in Greece is once again on a noticeable upward trend since 2018, giving a reason for optimism. Greece continues to evolve into a place worth living in for international buyers.

In fact, German, Austrian and Swiss buyers are currently on the top of the list, followed by American, English, Spanish and French buyers. The attractive prices, combined with the use of the properties are the main arguments that make Greece their first choice.

In particular, Greece possesses the benefit of comparatively lower prices, even for renowned regions like the Athenian Riviera or popular Greek resorts, which are generally regarded as higher-priced areas. Even in the beloved Greek islands, the prices are notably lower. The prices in Greece are particularly competitive, even when compared to the first-tier European destinations.

In addition, the country has a lot to offer and at the same time is attracting interest through excellent projects - such as the spectacular project of Elliniko, which is now considered the largest urban construction project in Europe. Here, on the outskirts of Athens, a state-of-the-art urban extension with infrastructure for commerce, housing and tourism is being built on a total area of 6.2 million square meters.

Also, another point is that the Greek state will continue the Golden Visa program for 2023. Based on this, third-country nationals in Greece have had to invest at least 250,000 euros in a property in order to obtain a residence permit for themselves and their family, which also entitles them to travel to all other Schengen states. At present it has been decided to proceed in two categories: In some metropolitan areas, an investment of €500,000 in a property is required to qualify for the golden visa, while in less crowded areas only €250,000 is enough to enjoy the benefits of the visa.

Finally, competitive labor costs and well-trained, multilingual staff make Greece a potential nearshoring location. Reforms in recent years have reduced bureaucracy and as a result, have also led to faster processing of approval procedures.

Therefore, the prospects for the Greek real estate market in the coming years can be described as positive and promising. In 2023, it can be assumed that the real estate market will continue to rise significantly.

The islands of the Southern Aegean

The growing desire among both Greeks and foreigners to spend their vacation in the sun-soaked islands of the Cyclades and Dodecanese in the southern Aegean region has had a positive impact on Greek tourism, leading to an increased demand for second homes in these areas.

The extension and improvement of the tourist season can be attributed to the reliable air connections between the islands and mainland Greece, as well as direct flights from numerous cities abroad. Additionally, the modern regional airports, seaports, infrastructure investments, and luxury hotels complement the natural splendor of the Greek islands.

Purchasing a property in the Greek islands offers an attractive investment opportunity for buyers who want to combine holiday enjoyment with the possibility of leasing the property for satisfactory returns when they are not using it themselves.

Furthermore, the reduced supply of holiday homes on the most popular islands, such as Mykonos and Santorini, has as a result buyers to become more interested in new islands, such as Paros and other smaller islands, which are now being discovered and prioritized by these target groups. It can be assumed that this trend will continue until the end of 2023.

Another important trend is the fact that more and more European seniors and digital nomads are actively seeking a destination that offers a favorable climate and excellent amenities, allowing them to explore new possibilities for both living and investment.

Second home market trends

In terms of nationalities, American buyers, with a significant proportion of them being expatriates, are currently on the top of the list of international buyers showing interest in buying properties in very popular islands such as Mykonos and Santorini, aiming to secure additional income during periods when the property is vacant from the owners.

The islands of Mykonos, Rhodes, Paros, Syros, Symi, Tinos, Andros, and Patmos have gained significant popularity as desirable vacation destinations. These islands attract numerous investors who have the option to choose between lively cosmopolitan settings or peaceful family getaways. The available houses on these islands feature a diverse range of architectural styles that blend traditional, neoclassical, and contemporary elements.

Mykonos & Santorini

Undoubtedly, Mykonos and Santorini are particularly fascinating among the Cyclades, offering a wide selection of holiday homes and exclusive villas for sale. Executives from Engel & Völkers Greece have observed, since last year, a trend in the demand for properties with modern and environmentally friendly architectural elements. There is also a shift towards modern designs that preserve traditional elements.

Paros

Paros is another noteworthy destination experiencing increased interest due to planned investments in its airport, aimed at further modernizing the island. Paros’ second home market is witnessing notable trends with increasing demand from domestic and international buyers. The island's natural beauty, charming villages, and stunning beaches attract buyers seeking a peaceful retreat. Luxury developments cater to discerning buyers, while traditional Cycladic architecture is highly valued. Paros appeals to a diverse buyer profile, offers potential for rental income, and provides a desirable lifestyle with a mix of tranquility and modern amenities.

Syros

Syros offers a diverse range of properties characterized by neo-classical architectural elements. These properties are primarily found in the historic Ermoupoli, alongside more recently built properties with striking modern designs.

Tzia, Andros & Tinos

Tzia, Andros and Tinos provide an alternative option for those seeking a peaceful destination with good amenities. Buyers are attracted to the islands' natural beauty, traditional architecture, and tranquil atmospheres. Luxury developments and high-end properties are on the rise in Tzia (Kea), while Andros offers a blend of traditional charm and modern comforts. Tinos appeals to buyers with its traditional Cycladic architecture and cultural heritage. Overall, these islands offer a peaceful retreat with modern amenities and convenient access to local attractions, attracting domestic and international buyers.

Rhodes

Rhodes, boasts various geographical features, including stunning mountainous regions and numerous beaches. The island is also home to cultural monuments of international significance, luxury hotel complexes, and public and private investments, such as the Afandou Golf Course. These factors contribute to Rhodes' popularity as an international destination. Investors are particularly interested in the traditional settlement of Lindos and its surrounding area, which maintained consistently high prices even during the health crisis. Lindos, along with nearby areas like Pefki, Vlycha, and Psaltos, are among the most expensive regions in Rhodes, experiencing high demand for investment in holiday homes.

Symi

Symi, located close to Rhodes, has emerged as a popular destination in the Dodecanese. Its vibrant residential environment showcases neoclassical-style buildings, attracting investors looking to acquire vacation homes. The island combines its glamorous past with a cosmopolitan atmosphere, and during the summer months, its harbor becomes a bustling hub for Greek and foreign super-yachts and sailing boats.

Patmos

Patmos Island's second home market is witnessing increasing demand from domestic and international buyers. The island's authentic charm, historical significance, serene atmosphere, and commitment to preserving authenticity attract buyers. Patmos offers a blend of traditional architecture and luxury developments, catering to different preferences. With its reputation as a retreat and wellness destination, Patmos offers a tranquil escape with a touch of luxury, making it a sought-after location for second homes.

Prices per square meter in the islands of the Southern Aegean

The prices range from the lowest price of old, not renovated property to the highest price of newly a built house.

Buyers' expectations

The purchasers' expectations for second homes can vary depending on the individual buyer and the specific location. However, in general, many buyers are looking for properties close to the sea that provide a high level of luxury and modern amenities, traditional architecture and rental potential.

The need for privacy is also something which potential purchasers are looking for and in fact, the preference for a property featuring a swimming pool located away from the coastline is a typical example of this need.

Buyers also consider the islands' accessibility and connectivity to mainland Greece and major urban areas, along with the availability of public infrastructure.

Overall, buyers of second homes in the islands of Cyclades & Dodecanese are often looking for a combination of luxury, natural beauty, and cultural heritage that is unique to these areas.

Conclusion

The second home market in the islands of the Southern Aegean, has seen significant growth in recent years, with a strong demand from buyers who come from the United States who are currently showing interest in property purchases in popular island destinations such as Mykonos and Santorini, with the prospect of securing additional income during periods when the property remains vacant. As for the islands of Paros, Rhodes, and Syros they also seem to attract significant interest from the international community such as French and Germans, due to a combination of factors including natural beauty, favorable weather, improved infrastructure, and investment opportunities.

Peloponnese

Peloponnese as a whole has become an increasingly popular destination for second home buyers, both domestic and international. In fact, Porto Heli, Messinia, Nafplio, as well as Hydra and Spetses are experiencing an increase in the desire for secondary residences because of their breathtaking natural beauty, historical significance, and excellent facilities. These locations provide convenient proximity to the sea, featuring sought-after beaches and marinas that attract yacht owners and water sports enthusiasts. Several factors are fueling the desire for second homes in these regions, including the growth of the Greek economy, an upsurge in tourism, and a preference for a luxurious way of living. German buyers appear to be particularly active, primarily for property purchases in the Peloponnese region.

Second home market trends

Porto Heli

Porto Heli is a popular cosmopolitan port in Peloponnese, known for its luxury villas. The demand from domestic and international buyers has driven up property prices. Buyers seek high-quality properties with amenities like swimming pools and proximity to the sea. Costa, Agios Emilianos, and Ververonda are among the sought-after areas for second homes in Porto Heli

Nafplion

Nafplion, a charming historic town on the eastern coast of Peloponnese, attracts Greek and international buyers seeking second homes. The town's beautiful architecture, beaches, and historic sites are major attractions. Tolo, Drepano, and Kiveri are popular areas for second homes in Nafplion.

Messinia

Messinia is a region in southwestern Peloponnese and has become increasingly popular among second home buyers. Its scenic landscapes, including sandy beaches, olive groves and picturesque villages, offer a peaceful and idyllic setting for second homes. It has been noted that the coastline around Costa Navarino and Kalamata, is highly sought after and therefore, properties with sea views or direct beach access tend to command higher prices and are in high demand. The development of the Costa Navarino luxury resort project has given an extra boost to the growth of the second home market since it attracts buyers who are looking for a premium lifestyle. In addition, the investment opportunities occurring in the region have appealed to more and more buyers who buy properties with the potential for rental income through vacation rentals when they are not using the properties themselves. Lastly, the expansion of Kalamata International Airport and infrastructure development have further enhanced Messinia's appeal as a second home market destination. Popular areas for second homes include Costa Navarino, Gialova, Stoupa, Pylos, Foinikounda, and Kalamata.

Hydra, Spetses & Aegina

Spetses, Hydra, and Aegina situated in the Saronic Gulf off the coast of Athens, have experienced notable growth in the second home market in recent years. Both Greek and international buyers and investors are attracted to the islands’ unique charm, convenient location, rich history, and picturesque landscapes. The limited supply of properties coupled with the strict building regulations, and preserved architectural character contributes to the exclusivity and appeal of owning a second home in these islands. On Spetses and Hydra islands, buyers are drawn to their historic and traditional properties, and therefore, they seek historic properties - such as old mansions and villas to renovate and restore, while Aegina offers a mix of traditional and modern options.

Prices per square meter in Peloponnese

The prices range from the lowest price of old, not renovated property to the highest price of newly a built house.

Buyers' expectations

Buyers in Porto Heli and Nafplion seek scenic locations, quality construction, and they value properties with easy sea access and stunning views. In Porto Heli, buyers prioritize well-built properties with privacy whereas in Nafplion, buyers desire properties with historical features and outdoor living spaces which at the same time offer easy proximity to amenities. Buyers in both areas are a mix of domestic and international, with growing interest from Europe and North America.

Messinia

Buyers in Messinia expect picturesque locations, impeccable construction, and proximity to the sea. They prioritize easy beach access, stunning sea views, and nearby amenities. Swimming pools are popular, especially for families. Buyers come from a mix of domestic and international markets, with growing interest from Europe and the Middle East.

Hydra, Spetses & Aegina

Buyers in Hydra, Spetses, and Aegina have high expectations for their second home properties. In Hydra, they seek unique, historic houses with stunning views and a car-free environment. In Spetses, buyers look for exclusive, luxury properties that can be restored to their former grandeur. Aegina buyers desire a mix of traditional and modern properties with proximity to the sea and easy access to Athens. Overall, buyers value the islands' charm, natural beauty, and convenient amenities.

Conclusion

In conclusion, the second home market in Porto Heli, Nafplion and Messinia is growing and popular, with the buyers to be a mix of domestic and international buyers, while the buyers in Hydra and Spetses are more heavily skewed towards international buyers. The market offers a range of properties, from apartments to luxury villas, with a wide variety of amenities and price ranges. Buyers of second homes in these areas generally have high expectations and desires for their properties, including scenic locations, high-end amenities, quality construction and design, proximity to attractions, and privacy.

Porto Heli & Nafplion

Athens Riviera

In recent years, the demand for second homes in Athens Riviera has been steadily increasing, driven by a number of factors. These include the area's stunning natural beauty, its proximity to Athens and the international airport, and its high-quality amenities, including marinas, golf courses, and restaurants.

Regarding nationalities in more detail, buyers from the United States and Central Europe are currently showing interest in property purchases in areas such as Athens, partly due to the continuously improving air connectivity.

Athens Riviera is a coastal area located south of Athens, stretching from Elliniko to Sounio, covering a distance of approximately 50 km. It offers a wide range of properties for second home buyers, including luxurious villas, apartments, and houses with sea views.

Second home market trends

In terms of market trends, German, Austrian and Swiss buyers are currently on the top of the list of international buyers who are currently looking for a second home property, followed by American, English, Spanish and French buyers. The more attractive prices compared to other European cities, combined with the Mediterranean climate are the main arguments that make Greece their first choice.

The market along the entire length of the Athens city coast area has evolved in the last period of time as the big project for the development of the former Elliniko airport gets underway. It is typical that in recent months, there has been a lot of construction activity in Glyfada, Voula and Elliniko where older buildings are now being demolished to be replaced by very modern residences with high energy efficiency and excellent construction quality. In fact, several new constructions with luxury apartments are expected to be completed, which have already been put on the market.

Prices per square meter in Athens Riviera

The prices range from the lowest price of old, not renovated property to the highest price of newly a built house.

Buyers' expectations

Buyers' expectations for a second home in Athens Riviera often include high-quality amenities, such as swimming pools, beach access, and sea views. They also look for properties that offer privacy, security, and proximity to the city center of Athens as well as the international airport. Another driving factor for this target group is the availability of a big range of commercial centers as well as the fact that buyers can enjoy Athens Riviera during all seasons of the year thanks to its lively lifestyle.

The general demand for most buyers is the property to have the characteristics of new or at least renovated or not renovated but with a view and closer to the sea, in order to design their residence as they want. Another trend for buyers who are looking for a second home is the purchase of premium apartments which are parts of a complex for extra security and safety.

Conclusion

Overall, the second home market in Athens Riviera is expected to remain strong in the coming years, driven by the area's growing popularity, the development of new luxury properties, and the increasing demand for high-quality homes in a safe and beautiful Mediterranean setting.

Conclusion

The majority of Engel & Völkers' customer base consists of foreign buyers, with more than 80% showing great interest in the Greek islands. Among them, Germans, Austrians, Americans and French buyers display the highest level of interest. Property purchases in the Greek islands are expected to continue increasing due to tourism and Greece being a top choice for European travelers in the summer of 2023. With a significant surge in tourist arrivals anticipated, larger than 2022, there will be potential buyers seeking their own holiday properties, as many vacationers now prefer owning a property instead of staying in hotels. The high demand and growing popularity of the area will likely lead to further price increases in the future, with some areas experiencing a shortage of supply. Therefore, this is a favorable period for real estate investments in Greece.