The increase in interest rates has positively affected the increase in demand from abroad for purchasing holiday homes in our country, Elxis research found, the Greek company based in the Netherlands, with offices in Utrecht but also in Thessaloniki and Crete and specialising in the sale of holiday homes in Greece.
As it turns out, Greece's comparative advantage for foreigners is found in the still low (at least compared to other European markets) real estate prices, especially on the mainland, in tourist destinations of the Peloponnese, Halkidiki, etc., with prospective foreign buyers looking positively at the prospect of buying a property, particularly as a hedge against inflation.
"After the increase in interest rates, we see that, among our customers, the desire for bank loans, in the context of acquiring a holiday home, has frozen. This happens because the loan's interest rate, amounting to 4% - 5%, essentially nullifies the return that an investor can have from the exploitation of the country house he buys," noted Mr Giorgos Gavriilidis, managing director of Elxis.
According to him, this development means that those investors who come from Western and Northern European countries, e.g. from Germany, the Netherlands, Belgium, France, the United Kingdom, Austria and Switzerland, now prefer to use their savings exclusively "for the acquisition of a holiday home abroad, specifically in Greece, because that way they can avoid taking out a mortgage."
In this way, they ensure a quadruple benefit, Elxis states in its analysis, specifically:
1) Protection of their funds from inflation
2) Satisfactory performance from the exploitation of the property in which they invest
3) They combine income from exploitation and personal use
4) Their property has Excellent future capital appreciation prospects should they wish to resell it after 5-10 years.
The fact that in Greece, the average sale price of a newly built holiday home is around 300,000-350,000 euros, making it ideal for European investors, something that has begun to be noticed by an increasing mass of prospective buyers.
"There is a great value in Greece's holiday homes, as for a low amount, compared to other markets, one can acquire a house, close to the sea, or overlooking it, with a swimming pool and all the amenities," noted Mr Gavriilidis.
He adds that according to estimates based on relevant research, approximately 3 million citizens from Western Europe are currently thinking of investing a capital of approximately 300,000–350,000 euros for exploitation and own use.
Thus, the market in Greece is becoming particularly "hot" among foreigners, which is also reflected in the preferences of tourists, which certainly also works in favour of purchasing holiday homes.
The advantages offered are such that more and more investors prefer it.
“The market has also clearly changed in recent years from a buyer's market to a seller's market, particularly for newly built homes. While we saw buyers choosing the properties ten years ago, now, for some projects, we have a waiting list of interested parties waiting for the next project to be announced," concluded the CEO of Elxis.
READ MORE: The Dos and Don’ts of Selling Property in Greece.
