Market Report 2022 · South Aegean Residential Properties
The Southern Aegean: The Cyclades - The Dodecanese
The increasing desire of many Greeks as well foreigners to enjoy their holidays in the sunny islands of the Southern Aegean (Cyclades and Dodecanese) has given a boost to the Greek tourism and therefore, the demand for buying second home houses in these regions. Home ownership in the Greek islands is an ideal investment opportunity for buyers who wish to combine enjoying their holidays, on the one hand, and leasing the property with satisfactory yields, on the other, when such property is not intended for own use. Moreover, the health crisis management in Greece during the period of 2020 - 2021 has greatly contributed to further develop tourism, since the period of tourist arrivals has been extended beyond the summer season (spring - autumn) and has had a positive impact on the purchase of a second residence in popular destinations, such as Mykonos, Rhodes, Paros, Symi, and so on.
The enhancement and extension of the tourist season is also due to the steady air links of the islands with mainland Greece as well as numerous cities abroad through direct flights. The modern regional airports and seaports as well as the infrastructure investments and luxury hotels complement the natural beauty of the Greek islands. An increasing number of European seniors and digital nomads are searching for a house in a destination which combines a mild climate and good facilities, providing new perspectives on residence and investment at the same time. This trend is supported by the Greek economy, since the Greek banking foundations have been granting loans with a high loan-to-value ratio (70%-85%) and facilitating the implementation of the investment project since mid-2021.
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 a newly built house. Area
(€ / sq. m.)
Area
(€ / sq. m.)
Mykonos
6,000€ - 11,000€
Tzia (Kea)
2,000€ - 4,000€
Santorini
4,500€ - 9,000€
Rhodes
2,500€ - 7,000€
Paros
3,500€ - 8,000€
Symi
1,500€ - 4,500€
Syros
1,800€ - 5,000€
Patmos
4,500€ - 8,000€
Tinos
2,000€ - 5,000€
Andros
2,000€ - 5,000€
Source: Engel & Völkers Ελλάδος
Market Report Residential Property · Athens & The Islands of the Southern Aegean
3
Second home market trends Mykonos, Rhodes, Paros, Syros, Symi, Naxos and Patmos have a prominent position as destinations for holiday homes. Each island, thanks to its unique and special qualities, attracts a large number of investors, who can choose between the cosmopolitan experience and the relaxing family holiday. In addition, the houses feature a
tive choice for those who prefer to combine a quiet destination with good facilities. The island offers an interesting range of properties characterized by neo-classical architectural elements and which are mainly found in historic Ermoupoli, as well as more recent properties, which stand out due to their modern architectural design. Rhodes, the largest island in the region of the South Aegean, boasts a variety of geographical features. Its natural beauty encompasses mountainous regions and a large number of beaches. Moreover, the cultural monuments of international interest, the luxury hotel complexes and the public and private investments to be implemented soon, such as the golf course in Afandou area, are some of the reasons which make the island a popular international destination. The traditional settlement of Lindos and the surrounding area, where prices remained steadily high even during the health crisis, are of particular interest to investors. Lindos and the surrounding area, especially Pefki, Vlycha and Psaltos, are among the most expensive areas of Rhodes presenting the highest demand for investment in holiday homes.
wide range of architectural styles, combining traditional, neo-classical and modern elements. The house demand is influenced by tourism to a great extent, since traditionally, but also during the health crisis, the data for the year 2021 indicated that one in four visitors to Greece chose the Southern Aegean and especially the Cyclades and the Dodecanese as their holiday destination, leading to a difference of hundreds of thousands of visitors between them and the region in the second place. Needless to say, Mykonos and Santorini are the islands of great interest in the Cyclades, offering a large number of holiday homes and exclusive villas for sale. Engel & Völkers Greece executives have noted that a new trend has emerged recently concerning the demand for property with particularly modern and green architectural elements along with a shift to modern design, preserving its traditional elements at the same time. Paros is also a place of interest and one of the top emerging destinations owing to the planned investments in its airport to promote its further modernization. Syros can be an alterna-
4
Symi, located a short distance away from Rhodes, has been an emerging destination in the Dodecanese recently. Its colorful residential environment in neoclassical style is striking, inviting investors to acquire a holiday home there. The glamor of the past blends with its cosmopolitan atmosphere and its harbor swarms with Greek and foreign super-yachts and sailing boats during the summer months. Price levels In general, the average price increase in houses in the Southern Aegean amounts to 10% for the year 2021. The price levels have an upward trend in the Cyclades. In Mykonos, demand depends on tourism development and investments, for example in Kalo Livadi and Kalafatis the interest for a second home is constantly increasing. Prices in these emerging areas range from EUR 6,500 to EUR 11,000 per square meter, while in Psarou, Ornos and Chora the corresponding prices range from EUR 8,000 to EUR 17,500 per square meter. For areas of medium size demand in Agrafi, Fanari, Ftelia and Kalafatis prices range from EUR 5,000 to EUR 11,000 per
Market Report Residential Property · Athens & The Islands of the Southern Aegean
square meter, and the most remote areas in Ano Meria, Merchia etc., they range from EUR 3,500 to EUR 6,500 per square meter. The executives of Engel & Völkers have noted that demand on the island has been more focused on houses of modern design and ecological architecture recently. Similarly, evidence indicates increased purchasing interest in Paros. More specifically, interest is focused on newly built constructions with traditional elements, the price range of which varies from EUR 4,000 to EUR 8,000 per square meter, while for older constructions it varies from EUR 3,500 to EUR 5,000 per square meter. It should be noted that the price levels and demand in Paros are on the rise. With regard to Rhodes, the price levels also have an upward trend. In the area of Lindos, which is the center of the purchasers’ attention, the prices of houses situated in prime locations range from EUR 4,500 to EUR 7,000 per square meter, while in the south, in the vicinity of the settlements Kiotari, Gennadi and Lachania, the prices of villas range from EUR 3,000 to EUR 6,500 per square meter. In the areas of medium size demand in the east, namely Kolympia, Afandou and Faliraki, as well as Ixia and Ialysos in the western part of the island, the prices of houses range from EUR 2,500 to EUR 5,500 per square meter. There is a stable demand for the town of Rhodes, which offers a remunerative investment to purchasers throughout the year, with prices of houses ranging from EUR 3,500 to EUR 6,000 per square meter, while those of apartments ranging from EUR 2,500 to EUR 4,000 per square meter.
while the prices of properties of up to 150 square meters range from EUR 1,800 to EUR 3,500 per square meter. The prices for expensive properties, e.g. above EUR 1 million, in the region of the Southern Aegean increased by 10%-15% in 2021, while the corresponding increase in residences of EUR 2.5 million was by 5%-8%. The increasing trends in the purchase of a holiday home were reinforced by the fact there has been an increase in the funds allocated by the majority of the interested parties in order to ensure the best possible investment. The purchasers’ expectations The types of residences the potential property buyers prefer in the Greek islands are mainly those close to the sea. They prefer seaside residences or residences overlooking the sea. Architectural design, modern design and privacy are also greatly valued. The preference for property with a swimming pool which is away from the coastline, especially in areas crowded with tourists, is a typical example of their need for privacy. Purchasers also take into account the accessibility and connectivity of the islands with mainland Greece and large urban centers, as well as the public infrastructure. According to data in the real estate market, a significant increase in investment demand has been recorded during the year 2021, mainly because the destinations in Greece offer high returns to investors in relation to property renting: As regards the above data, indicative figures of returns in Mykonos range from 5% to 10%, in Paros from 4% to 7,5% and in Rhodes from 5% to 8%.
On the island of Symi, the prices of luxury residences range from EUR 3,300 to EUR 4,500 per square meter,
Market Report Residential Property · Athens & The Islands of the Southern Aegean
5
Conclusion Engel & Völkers’ costumer base comprises foreign purchasers who take a very keen interest in the islands to an extent greater than 80%. The Germans, the Austrians, the Swiss, the Belgians and the French are the most highly interested, followed by citizens of the UK.
Property purchases in the Greek islands are expected to increase further, also driven by tourism and due to the fact that Greece is at the top of the list of the most popular tourist destinations for Europeans for the summer season of 2022. A significant increase in tourist arrivals is expected in the upcoming summer and consequently potential purchasers. This trend is reinforced by the fact that after the pandemic outbreak, many vacationers who prefer to stay in hotels are increasingly seeking to acquire their own holiday property. The high demand and the increased popularity of the area will lead to a further rise in prices in the future. In some areas, the demand exceeds supply. Therefore, this period is suitable for real estate investments in the Southern Aegean.
6
Market Report Residential Property · Athens & The Islands of the Southern Aegean
Competence. Our world is as diverse as your demands. Uniting them has been our passion - for 45 years Be a part of it: www.ev.gr
Engel & Völkers Athens - Cyclades - Rhodes - Peloponnese
•
www.ev.gr
Engel & Völkers Greece Tel. +30 211 105 5000 · athensmmc@engelvoelkers.com 2-4 Mesogeion Ave. 10th floor · 115 27, Athens www.ev.gr