Falling tourist numbers, increasing accommodation options, competition from other premium destinations in the Mediterranean, and international economic pressures have caused rental prices to drop on the “Island of the Winds.” However, interest in buying is high.
With a drop ranging from 20% to 30%, the prices for rental villas in Mykonos are lower this year, but interest in sales is still high, with many prospective buyers from abroad.
The abundance of rental housing, combined with the drop in visitors to the island, brought a drop in prices, in addition to competition from other premium Mediterranean destinations.
Another parameter is that even the highest-income tourists, who make up the large majority of travellers to the island, are spending less on accommodation amid international economic pressures.
“Due to the decrease in visitors this year, the prices in rental villas have lowered by 20-30% and will certainly not reach the occupancy levels of the previous two years,” said Ioannis Revithis, honorary president of the Association of Real Estate Agents of Attica, which has a long-term presence on the Cycladic island.
He said there is a 10-15% decrease in European and American visitors; however, on the other hand, the arrivals of private jets to Mykonos from the beginning of the year until today exceed 1,000.
“Last week, there were 150 arrivals as mega yachts flooded the southern locations of the island,” Revithis said.
“Purchasing residences has quite a lot of interest, and in combination with the suspension of building permits and revisions—for a year now—due to the new zoning prepared by the relevant ministry, it has an effect of restraining sales prices while in some specific villas and regions, there was an increase,” the association president added.
According to him, the prices for houses from 150 sq.m. up to 300 sq.m. range on average at 5,000 euros/sq.m., while the high-end villas near the sea or with an excellent view of the Aegean and with the signature of well-known architectural offices and construction companies exceed 10,000 euros/sq.m.
“These are homes that have nothing to envy from the country houses of the French and Italian Riviera,” Revithis stated, adding: “Of course, it must be emphasised that the cost of construction on the islands has doubled in the last two years.”
As shown by advertisements on the Spitogatos classifieds network (www.spitogatos.gr), Mykonos is in first place among the most expensive islands of the Aegean, with the average asking price from the owners this year at 6,936 euros per sq.m.
Stefania Souki is a columnist for New Money. Translated by Paul Antonopoulos.
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