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Yes, the analysis of the Greek Islands' property market is included in our pack
Considering buying real estate in The Greek Islands? You're not alone!
Many people are intrigued by the Greek Islands' Aegean beauty and dream of owning a charming villa or a stylish apartment there.
Does it make sense, though? Are property prices increasing on the Greek Islands? What is the price per sqm? Is it better to buy property in Santorini or Mykonos? Are there any hidden fees? Where are the best rental yields?
In this article, everything is sorted out for you.
The Investropa team knows this market like the back of their hand. Actually, we've organized all our findings in a pack. Get it now.
In this article, we're happy to share useful information with you.
How is the property market on the Greek Islands?
Is the property market doing fine or not? A data-driven analysis will give us the answer.
Property types
Properties for sale in the Greek Islands include a variety of options such as charming villas with breathtaking sea views, cozy cottages nestled amidst olive groves, modern apartments in bustling coastal towns, traditional houses in charming villages, and even plots of land where you can build your dream home.
Whether you're looking for a serene retreat, a lively beachside escape, or a blank canvas for your architectural vision, the Greek Islands offer a diverse range of properties to suit different preferences and lifestyles.
Buying vs Renting
(If you're purchasing for personal use and not for renting)
Whether you're considering settling in one of the Greek Islands or already living there, you might be pondering the buy vs. rent decision in this beautiful and picturesque archipelago.
In the Greek Islands, people often prefer to buy property due to the appeal of owning a piece of the idyllic Mediterranean paradise, potential investment opportunities, and the ability to have a permanent vacation home.
On the other hand, if you value flexibility, renting might be the better choice.
Housing prices on the Greek Islands
On average, according to the updated data from Bank of Greece, purchasing a property on the Greek Islands would cost you around $7,500 per square meter.
Of course, there are notable differences. An island property in the Greek Islands might have a different price per square meter than a villa in Athens. You'll get a more detailed in our pack for buying property on the Greek Islands and in Greece.
To put things in perspective, it is 2.5 times less than the property prices in the center of New York.
However, housing prices on the Greek Islands are higher (7%) than in the Balearic Islands.
The most expensive places on the Greek Islands are probably Mykonos and Santorini, while the cheapest are likely smaller, less tourist-oriented islands.
Trends
First and foremost, we have to acknowledge that Greece offers, today, peace and stability to investors. The last Fragile State Index that has been reported for this place is 55.8.
Remember this important aspect when wondering if it's a good investment to buy a property on the Greek Islands.
On the longer term, the growth will still be there since Greece's economy is expected to soar by 8.1% in the coming 5 years, resulting in an average GDP growth rate of 1.6%.
If you intend to invest in real estate on the Greek Islands it's a good thing because, as the economy grows, people's incomes (usually) increase, motivating them to invest in real estate, which causes a rise in property demand and prices.
Also, in Greece, the average GDP per capita has changed by 8.2% over the last 5 years. It's a satisfactory number.
This is a strong positive signal: housing prices on the Greek Islands might become more expensive in 2024 and later on.
Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Greece right now.
Buying property on the Greek Islands
It can be difficult to buy property on the Greek Islands due to a lack of reliable and updated information. That's why we have created the pack to buy property on the Greek Islands and in Greece.
Buying process
In our pack, we've explained the entire process of buying properties in a detailed way. We've pointed out the mistakes to steer clear of, shared tips for finding properties that give you the best returns, and provided information about taxes and necessary documents.
Now, we're giving you a simplified version of the buying process.
This is the step-by-step process to purchase a property in the Greek Islands:
- Research the market and select the desired island and property type.
- Engage a Greek lawyer and obtain a Greek tax number (AFM).
- Sign a Reservation Agreement and pay a deposit to secure the property.
- Conduct property due diligence, including a "Topographic Diagram" and "Cadastre" search.
- Sign the Purchase Agreement (Synallagma) before a notary public.
- Obtain a "Real Estate Transfer Tax Number" (AFM E9).
- Open a Greek bank account for the transaction.
- Transfer the purchase amount to the Greek bank account.
- Obtain approval from the local authorities for non-EU buyers, if applicable.
- Sign the final deed of sale (Apografi) before a notary public.
- Pay the property transfer tax (3-8% of the property value) and registration fees.
- Transfer ownership and receive the property title (Title Deed) from the Land Registry.
Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Greece.
Make a profitable investment in the Greek Islands
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Where to find a property
Explore these websites to find properties in the Greek Islands:
- Golden Home - A real estate company with an extensive portfolio of over 50,000 properties for sale and rent throughout Greece.
- Spitogatos - A comprehensive real estate platform in Greece offering a variety of properties for sale and rent. Their listings include homes, commercial properties, and land plots.
- Spiti24 - The premier Greek property listings platform, known for its user-friendly interface, advanced search features, and connections to real estate professionals.
- Grekodom - Offering a wide selection of properties in popular Greek locations, Grekodom provides expert support throughout the property purchase process.
- Tospitimou - A top property portal in Greece, exclusively featuring listings by real estate agents and boasting a database of over 600,000 properties.
Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Greece.
Which properties for which budget?
As mentioned before, the average price per sqm on the Greek Islands is $7,500. A 1-bedroom property of 60 square meters would cost approximately $450,000, and a 2-bedroom property of 85 square meters would cost approximately $638,000.
Of course, the price of properties can be influenced by their qualities and the area they're in.
Investing in real estate on the Greek Islands' prime locations often comes with a heftier cost. If you're looking at Mykonos, a residence might be about $1,820,000, but a condominium in Santorini could be priced at $800,000.
Nevertheless, there are spots that are more accommodating to your wallet. You could find a property in Ikaria for $350,000, or you may encounter one in Lemnos priced only at $290,000.
Find a more detailed price list in our full pack for buying property in Greece.
Risks and pitfalls
Here are the main pitfalls when buying a property in the Greek Islands:
- Byzantine property laws with bureaucracy and delays.
- Eminent domain risks due to archaeological finds.
- Tourist-driven price fluctuations impacting investments.
- "Forest maps" discrepancies affecting land use and building permits.
- Greek economic instability affecting property values.
- Strict coastal zone regulations limiting construction near the sea.
- Water scarcity and reliance on cisterns in some regions.
- Buying property with illegal structures or tax debts.
We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.
Everything you need to know is included in our Greece Property Pack
Living on the Greek Islands
The life on the Greek Islands is a peaceful paradise with stunning natural beauty, warm temperatures, and a relaxed atmosphere, making it an ideal place to buy property.
Cost of living
The cost of living on the Greek Islands is generally higher than on the mainland due to the higher cost of goods and services, as well as the cost of transportation. However, the quality of life is often considered to be higher due to the beautiful scenery and laid back lifestyle.
Here are some examples to better understand the cost of living in Greek islands:
- Rent for a one-bedroom apartment in the picturesque village of Oia, Santorini: $1,800 per month.
- A meal at a local taverna with "Moussaka," a traditional Greek dish: $20.
- Daily ferry ticket for island hopping in the Cyclades: $40.
- Utilities (electricity, water) for a small apartment in Mykonos Town: $120 per month.
- A cup of "Frappé," a popular iced coffee in Greece: $4.
- Entrance fee to the ancient ruins of "Knossos" in Crete: $15.
- Monthly membership at a gym with sea views on Rhodes: $60.
- A bottle of "Ouzo," a well-known Greek anise-flavored liquor: $10.
Areas
We like to make information easy to understand. So, we made a table that shows the main areas of the Greek Islands. For yields, prices and rents, check our property pack.
| Neighborhood | Description | Strengths | Weaknesses |
|---|---|---|---|
Mykonos | Mykonos is a vibrant neighborhood known for its picturesque beaches and lively nightlife. | Beautiful beaches, bustling nightlife, and vibrant atmosphere. | Can be overcrowded during peak tourist seasons. |
Santorini | Santorini is famous for its stunning sunsets and iconic white-washed buildings. | Breathtaking views, romantic ambiance, and unique architecture. | Can be expensive for travelers, especially during high season. |
Rhodes | Rhodes offers a mix of rich history with medieval architecture and beautiful beaches. | Historical landmarks, diverse beaches, and vibrant local culture. | May get crowded with tourists, especially near major attractions. |
Crete | Crete is the largest neighborhood, known for its ancient ruins, stunning landscapes, and delicious cuisine. | Rich history, beautiful landscapes, and authentic Greek food. | Some areas can be crowded during the peak season. |
Corfu | Corfu boasts a blend of Venetian, French, and British influences with charming old towns and beautiful beaches. | Rich cultural heritage, scenic beaches, and pleasant climate. | Popular tourist destination, might be crowded during summer. |
Zakynthos | Zakynthos, also known as Zante, offers stunning natural beauty with its famous Shipwreck Beach and Blue Caves. | Unique natural landmarks, crystal-clear waters, and opportunities for water sports. | Some areas can be crowded with tourists during peak season. |
Paros | Paros is a picturesque neighborhood with charming villages, beautiful beaches, and great watersports. | Stunning beaches, authentic villages, and excellent water activities. | Can get busy during the summer months. |
Life on the Greek Islands
The Greek Islands have suffered from a decrease in tourism due to the economic crisis in Greece, leading to a decrease in economic activity. However, the Islands are still popular tourist destinations and have seen an increase in the number of visitors in recent years, providing some economic relief.
What expats usually like the most on the Greek Islands are the stunning beaches, crystal clear waters, and the laid-back atmosphere. They also enjoy the relaxed lifestyle, delicious seafood, and vibrant nightlife.
Access to healthcare on the Greek Islands is generally quite good, with many islands having public hospitals and clinics and some having private facilities as well.
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Renting out on the Greek Islands
For those aiming to buy property solely for renting out and earning income.
Long-term
According to the data reported by Wikipedia, the home ownership rate in Greece is 73%, which is average.
Unlike Athens, where there are many workers looking to rent a place, most people in the Greek Islands prefer to buy a property to live there.
If you decide to rent out long-term, you might want to target people who are looking for a slower-paced and more relaxed lifestyle, such as retirees and digital nomads. Additionally, those looking to experience the culture and history of the Greek Islands could be interested in a long-term rental.
Here is a little summary table we've made for you.
| Property type and area | Profiles of potential tenants | What they are looking for | Expected monthly rent in $ |
|---|---|---|---|
Villa in Santorini | Tourists, honeymooners | Caldera views, luxury | $2000 - $5000 |
Apartment in Mykonos Town | Partygoers, tourists | Nightlife, beaches | $1500 - $3000 |
Traditional house in Naxos | Families, travelers | Local culture, beaches | $1000 - $2500 |
Beachfront villa in Crete | Luxury travelers, families | Secluded beaches | $2500 - $6000 |
Now, you will probably ask us about the yields. Unlike for other places, it would be difficult to give you the average rental yields for the Greek Islands due to insufficient long-term rental properties available for analysis. Also, it's quite diverse. For example, rental yields in Mykonos and Santorini are quite different from those in smaller isles.
Finally, know that, in Greece, the taxes will be around 22% of the total rental income.
Short-term
You could also decide to rent short-term to tourists visiting the Greek Islands for their summer vacations, or to business travelers visiting the region for conferences or meetings.
If you decide to go with that option, look for properties in Mykonos Town, Santorini's Oia, and Ios Town. These areas have a high demand for short-term rentals and are popular tourist destinations.
Is it worth buying real estate in the Greek Islands then?
Buying property in the Greek Islands can be a fantastic choice for certain individuals, but it's not a one-size-fits-all decision.
If you're someone who dreams of owning a vacation home in a stunning Mediterranean paradise, values long-term stability, or seeks an investment opportunity with potential for growth, then owning property in the Greek Islands can be a dream come true.
The islands offer a diverse range of properties to suit various preferences and lifestyles, from serene retreats to vibrant beachside escapes. Plus, with Greece's expected economic growth and the allure of rental income during peak tourist seasons, there's substantial potential for long-term financial gain.
However, if you're on a tight budget, looking for quick returns, or prioritizing flexibility in your living arrangements, then buying property in the Greek Islands might not be the best fit.
Some islands, like Mykonos and Santorini, come with hefty price tags, making them inaccessible to budget-conscious buyers. Moreover, the property market can be influenced by unpredictable tourism fluctuations, impacting rental income and property values.
If you're risk-averse or unfamiliar with the local property laws, the complexities of Greece's bureaucratic processes and regulations can also pose challenges.
Ultimately, while the Greek Islands offer paradise-like living, it's crucial to align your goals, budget, and risk tolerance with the unique opportunities and challenges of the property market in this picturesque archipelago.
Make sure you understand the real estate market in the Greek Islands
Don't rush into buying the wrong property in Greece. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
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