Hol­i­day home mar­ket re­bounds

For­eign buy­ers are fo­cus­ing mainly on pop­u­lar is­lands that fetch re­turns, such as My­conos and San­torini

Kathimerini English - - Focus - NIKOS ROUSSANOGLOU

Lux­ury hol­i­day homes in Greece are now the fo­cus of for­eign in­vestors, with pop­u­lar is­lands such as My­conos and San­torini grab­bing most of the at­ten­tion thanks to the high yields they of­fer those in­ter­ested in leas­ing them out.

Ac­cord­ing to an­a­lyst Kon­stanti­nos Sideris of Al­gean Prop­erty – a com­pany ac­tive in the hol­i­day home mar­ket with an em­pha­sis on for­eign buy­ers – trans­ac­tions in this sec­tion of the mar­ket in­creased by at least 10 per­cent in 2016 com­pared to the year be­fore.

“The year 2015 was pe­cu­liar, as it be­gan with great ex­pec­ta­tions for the prop­erty mar­ket, but they were post­poned owing to the cli­mate of po­lit­i­cal and eco­nomic un­cer­tainty in the first half of the year. In the sec­ond half of 2015 the mar­ket started work­ing again, with the in­crease in de­mand and buy­ing in­ter­est con­sol­i­dated dur­ing 2016, which is re­flected in trans­ac­tions,” Sideris told Kathimerini.

He said that in­ter­est is com­ing from var­i­ous Euro­pean coun­tries (in­clud­ing France, Great Bri­tain, Ger­many and Italy), adding that since July 2016 there has been a steep rise in de­mand from Turkey, as the in­se­cu­rity in the neigh­bor­ing coun­try has led many Turks to seek in­vest­ment op­por­tu­ni­ties in the Greek hous­ing mar­ket, both in terms of hol­i­day homes and apart­ments in Athens.

For­eign buy­ers are mostly peo­ple who of­ten va­ca­tion in Greece and used to rent lux­u­ri­ous vil­las for their stay. Now that prices have slumped by between 30-40 per­cent for that end of the mar­ket, those peo­ple have de­cided to ac­quire prop­erty of their own.

De­mand is fo­cused mainly on prop­er­ties rang­ing from 500,000 to 1.5 mil­lion eu­ros, which are of­ten leased out dur­ing the months that their own­ers are not in Greece.

Al­gean found in a re­cent sur­vey it con­ducted that the num­ber of houses 1.0684 to have re­ceived the nec­es­sary cer­tifi­cate for this shar­ing process are now at 11,000, up 70 per­cent from three years ago.

Of course the above fig­ures do not con­sti­tute a re­bound for the en­tire hous­ing mar­ket. A study by Price­wa­ter­house­Coop­ers showed that es­ti­mates for the course of the mar­ket are less op­ti­mistic, ex­pect­ing it to grow slower than the Greek econ­omy.

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