Winter holiday homes in Greece see prices rebound

Α Decrease font Enlarge font
Winter holiday homes in Greece see prices reboundHome sale prices at selected winter holidays destinations have recorded an average annual increase of 8 percent, which is the biggest since 2008

Coming fast on the rebound of apartments on Athens’ southern coast and the city center, and luxury villas on the islands the Cyclades, winter holiday homes have also entered a recovery course, having been among the first real estate categories to suffer from the financial crisis and see a protracted flatline in demand that lasted until 2017 at least, ekathimerini.com reports.

As 2019 draws to a close, the annual survey by Geoaxis Property & Valuations Services shows that home sale prices at selected winter holidays destinations have recorded an average annual increase of 8 percent, which is the biggest since 2008.

Geoaxis has discovered a general rise in prices across all of the areas surveyed. The biggest hike, amounting to 9.6 percent year-on-year, is seen in Trikala in the Peloponnese, a mountain village near Corinth that in recent years has evolved into a very popular destination for Athenians, thanks to its proximity to the capital.

Equally dynamic is central Greece’s Arachova near Delphi – the broader area is traditionally one of the country’s most significant winter destinations – which enjoyed a rise of 9.5 percent. Karpenisi, also in central Greece, posted an annual rise of 8.5 percent, while Aghios Athanasios in Pella, Central Macedonia, saw a 4 percent price increase.

The survey further indicates that the average surface area of the winter holiday homes on sale came to 171 square meters and their average age stood at 11 years, which is exactly the length of the crisis in this market. Consequently they are properties that had just been built when the financial crisis broke out and remained unsold despite the nosedive in prices.

According to the chief of Geoaxis, Yiannis Xylas, “the increase in the last 12 months reflects the consolidation of the return to financial and political normality, the expectation for a market recovery with future capital gains, the strengthening of winter tourism activity and the start of gradual access to easier borrowing.” Last year was the first since the outbreak of the crisis when winter holiday homes rates stopped dropping and recorded their first – albeit marginal – growth since 2008 by 0.7 percent. It followed an overall decline that in some areas had come to 62 percent.

One or two years of some growth will obviously not suffice to change the picture that the decade-long crisis has created in this property category. Even today the Geoaxis survey indicates that prices are less than half (down by 50.5 percent) from the peak they had reached in 2008.

The sharpest decline, of 62 percent, has been recorded in Aghios Athanasios, as asking prices today average at 1,240 euros per sq.m., against 3,300 euros/sq.m. In Arachova rates now come to 1,425 euros/sq.m., from 3,000 euros/sq.m. a decade earlier, a decline of 53 percent. The drop is smaller in Trikala Corinthias, where rates come to 1,255 euros/sq.m., against 2,250 euros/sq.m. in 2008, while at Karpenisi there has been a 43 percent fall, from 2,310 euros/sq.m. to 1,325 euros/sq.m.

As Xylas points out, in spite of the price increase over the last couple of years, there still are may constructors who have invested in this particular niche market by taking out loans so as to build luxury chalet-like homes, with the cost of construction and land acquisition topping 1,500 euros/sq.m., far above the current average rates. These professionals therefore remain trapped as even selling below cost appears able to generate the demand they need. “Such is the picture at Livadi in Arachova, where after the construction frenzy – to the point of some maisonettes being built almost in the lake – dozens of complexes remain incomplete without any prospect of an immediate sale.”

Indeed this market is a typical example of excessive expectations cultivated in the decade prior to the crisis, when the area of Arachova had been dubbed “winter Mykonos.” It attracted the Greek jet set, the rich and famous every winter, at a time when owning a mountain “chalet” was proof of prestige and wealth, along with a holiday home on Mykonos or Santorini.

That trend was evident from the size of the properties built in or near Arachova in their hundreds every year, as most of them exceeded 250-300 sq.m. Therefore. from 2002 to end-2005 sales prices in the area of Arachova went up by up to 100 percent in some spots, both for buildings and for plots. Properties closer to the Parnassos ski resort had become even more expensive; demand was so high that for some years buyers would acquire plots outside the town plan with the aim of constructing and selling three maisonettes so as to offset the cost of a fourth one, which they would keep for themselves.

Many buyers of the previous decade now have assets in the area and hardly any prospects of seeing their investment bear fruit anytime soon.

This picture could change if the recent steps the government has taken toward reducing taxation and easier access to cheaper funding bring results. Along with the further normalization of the economy and the strengthening of the winter tourism product in Greece – which lags summer demand considerably – those factors could accelerate the absorption of the above properties, while also raising prices.

Xylas argues that the market’s real recovery remains some time away, as at least three years, or even five, are thought to be needed for demand to return to a sustainable level. This is due to the way this particular market operates, as it trails developments in other property categories: First will be the consolidation in price growth in city apartments, stores, offices, and warehouses, and then more specific categories like winter holiday homes will follow.

RELATED TOPICS: GreeceGreek tourism newsTourism in GreeceGreek islandsHotels in GreeceTravel to GreeceGreek destinationsGreek travel marketGreek tourism statisticsGreek tourism report

Photo Source: Wikimedia Commons License: CC-BY-SA Copyright: Jean Housen


Tornos
  1. 28/03 18:41

    Attica Region to channel 640 bln euros to services of vulnerable and disadvantaged groups

  2. 28/03 17:32

    Greece to auction three-month T-bills on April 3, 2024 in a book entry form

  3. 28/03 15:46

    Greece's Meteora Pyli Geopark added to UNESCO Global Geoparks network

  4. 28/03 14:44

    IPTO announces framework agreement tender for undersea power cables in Greece

  5. 28/03 11:49

    IOBE: Construction sector in Greece records robust growth and good prospects

  6. 26/03 23:51

    St. Thomas Hellenic School honors 1821 and the Feast of the Annunciation in NJ

  7. 26/03 21:59

    PM at Economic Club of Canada: Greece is an attractive investment destination

  8. 26/03 17:56

    Greek State budget primary balance reaches a surplus of 3,378 million euros

  9. 26/03 11:45

    Ancient Messene to get upgraded visitors' facilities after approval by Council

  10. 23/03 17:43

    New requirements for 'Golden Visa' program to kick in on March 31

  11. 23/03 16:49

    Athenians continue to head out of the Greek Capital for March 25 long weekend

  12. 23/03 16:47

    Greek Parliament lights to be turned off for Earth Hour 8:30-9:30 pm

  13. 22/03 21:54

    US President on Greek Independence Day: Alliance with Greece stronger than ever

  14. 22/03 19:51

    High diplomacy and geopolitics at Delphi Economic Forum IX in Greece

  15. 22/03 19:32

    Tax authorities enable payments with foreign bank cards in Greece

  16. 22/03 14:19

    Greece to take part in Earth Hour on Saturday

  17. 22/03 00:24

    Greece ranks first on list of countries with fastest business environment progress

  18. 22/03 00:02

    Hellenic Police acquires first electric VAN-type highway patrol vehicle

  19. 21/03 22:41

    Greek Finance Ministry tightens Golden Visa rules

  20. 21/03 15:33

    Unseen Museum presents "The stele of the twin babies" exhibition in Athens

  21. 20/03 22:48

    Health Minister: 95% of Greek hospitals to perform afternoon surgeries

  22. 20/03 21:52

    Greek Deputy Minister of Justice meets delegation from US Embassy in Athens

  23. 20/03 21:44

    Greek Interior Minister to visit United States and Canada on postal vote

  24. 20/03 20:55

    Philadelphia Icarians mark 85th Anniversary and organize Apokriatiko Dance

  25. 20/03 18:01

    Development Minister: We continue the battle against high prices in Greece

  26. 19/03 22:28

    President of the Hellenic Republic meets her Ethiopian counterpart in Athens

  27. 19/03 20:57

    Greek Tourism Minιster meets Hellenic Chamber of Hotels

  28. 19/03 20:25

    FinMIn: Moody’s analysis records significant progress in the Greek economy

  29. 19/03 11:15

    Sector chiefs report: Good news for Greek tourism in 2024 at ITB Berlin

  30. 18/03 22:20

    American Hellenic Educational Progressive Association honors Past Supreme President

  31. 16/03 13:01

    Greek Deputy Foreign Μinister meets her Slovenian counterpart in Athens

  32. 16/03 12:56

    Greek-Canadian Diaspora to welcome Greek Prime Minister to Toronto

  33. 16/03 11:28

    Greek Migration Minister visits refugee hosting facilities in Kavala, Drama and Serres

  34. 15/03 21:50

    Greek Minister announces conference on defence ecosystem in Athens from Lithuania

  35. 15/03 13:45

    PM: More than 80 hospitals and 156 health centres being upgraded in Greece

  36. 15/03 12:55

    Piraeus Port and Genoa Chambers of Commerce ink memorandum of cooperation

  37. 14/03 23:43

    President of Hellenic Republic meets Prime Minister of Slovakia in Bratislava

  38. 14/03 22:58

    American Express report highlights Global Travel Trends during 2024

  39. 14/03 22:52

    Four hospitals in Attica Region already organizing afternoon surgical procedures

  40. 14/03 22:49

    US Ambassador to Athens: More flights from the United States to Greece and Thessaloniki

  41. 14/03 22:43

    Greek archaeologists discover ten ancient shipwrecks off Aegean island of Kasos

  42. 14/03 19:32

    No new intubations for Covid-19 recorded in Greece for the first time

  43. 14/03 18:36

    Extra road safety measures adopted for Greek pre-lent carnival and Clean Monday

  44. 14/03 14:48

    HRADF eyes bidders for Lavrio Port majority share

  45. 14/03 12:54

    Electric buses to be deployed on the streets of Athens and Thessaloniki by May

  46. 13/03 22:23

    Chairman: 2023 was an exceptional one for AEGEAN Airlines

  47. 13/03 20:11

    Prices of basic lenten products either lower or equal to last year's in Greece

  48. 13/03 19:15

    US Ambassador to Athens: Greece secures NATO readiness via Alexandroupolis

  49. 13/03 17:19

    Greece shines at 1st European Cruise Exhibition

  50. 13/03 12:26

    Greece shows new costumes for revamped Olympic Flame-lighting ceremony

  51. 12/03 22:46

    Epirotes Society of Philadelphia ‘Omonia’ organized 16th Annual ‘Tsipourovradia’

  52. 12/03 21:38

    The President of the Hellenic Republic to visit Slovakia on March 13-15

  53. 12/03 20:29

    First afternoon surgeries in Greece kick off at Papageorgiou Hospital in Thessaloniki

  54. 11/03 23:58

    Greek Foreign Minister: We stand behind Montenegro's European perspective

  55. 11/03 23:47

    Visa Express for Turkish citizens to commence on five Greek islands in March

  56. 11/03 19:40

    Amadeus acquires travel payments expert Voxel

  57. 11/03 18:49

    Microsoft Data Center construction kicks off in Spata next to Athens Airport

  58. 11/03 17:53

    Dodecanese Federation marked 76th Anniversary of Unification with Greece

  59. 09/03 22:23

    The future of travel planning is multimodal and interactive

  60. 08/03 14:27

    Prime Minister: Radical change in Greek education and a brave reform for growth

  61. 08/03 14:24

    Traffic restrictions expected in Athens mid-morning to evening on Friday due to protests

  62. 08/03 14:24

    Applications to out-of-court settlement more than doubled in Greece in February

  63. 08/03 13:18

    Metro station 'Maniatika' near Piraeus Port to be closed on Saturday and Sunday

  64. 07/03 14:12

    Athens wins World Travel Award 2024 as the top city-break destination in Europe

  65. 06/03 22:51

    WTTC data show Greece and Portugal lead league for growth in tourist arrivals

  66. 06/03 20:28

    Greek Tourism Minister at ITB: 2024 will be another excellent year for sector

  67. 06/03 19:47

    Greek Foreign Minister to meet UAE Minister of Industry and Technology on Friday

  68. 06/03 18:43

    European Union actions of 274m euros to support cultural heritage in Greece

  69. 06/03 16:37

    'Odontotos' rack railway temporarily stopped until landslides issue is resolved

  70. 06/03 14:40

    Minister: Bringing about the return of Greeks abroad 'a moral duty'

  71. 05/03 14:28

    Archdiocese of America Eparchial Synod to meet on March 14-17 in Florida

  72. 05/03 14:21

    The 'Lent Basket' to be launched in Greece on March 13

  73. 05/03 14:11

    ITB BERLIN 2024 opens with excellent bookings after global rise in travel in 2023

  74. 05/03 12:24

    Greek PM at Athens supermarket: Consumers 'can already see lower prices on the shelf'

  75. 04/03 22:02

    Greek Health Minister: Afternoon surgeries at state hospitals to begin shortly

  76. 04/03 21:47

    Holy Cross Greek Orthodox Whitestone Community marks 49th Anniversary

  77. 04/03 20:27

    Labor chief: Greece to train 500,000 workers in digital, green skills by 2025

  78. 04/03 19:44

    Foreign Ministry to organize event on 'Women, Peace, and Security' on Friday

  79. 04/03 15:12

    Athens Riviera | The summer experience with Athens as a background

  80. 29/02 22:54

    Consumers to see price cuts up to 18.1% in 3,000 Greek supermarket products as of Friday

  81. 29/02 21:44

    Greece and Germany set up Working Group on shipping cooperation

  82. 29/02 21:30

    Wyndham Rewards’ Member Month offers 5 weeks of deals, discounts, and bonus points

  83. 29/02 21:03

    Temple of Poseidon at Sounion near Athens to get new lighting system

  84. 29/02 21:02

    Greek Tourism Minister meets with Ambassador of Qatar

  85. 29/02 20:47

    Greece is represented by 60 firms at GULFOOD 2024 exhibition

  86. 29/02 19:58

    Greek government gives 1+1 month extension for cash register-integrated POS terminals

  87. 29/02 19:49

    Archangel Michael Church Dance Program shines at Folk Dance Festival in SF

  88. 29/02 15:39

    'Renovate-rent' programme to be launched, Minister tells Greek Parliament

  89. 29/02 12:39

    Rio-Antirrio ferry line in central Greece closed due to strong winds

  90. 28/02 21:34

    Weather with heavy rain and storms in Greece as of Sunday night

  91. 28/02 17:31

    CEO: The goal is for PPC to become a leading player in Southeast Europe

  92. 28/02 17:04

    New Wyndham Hotels Market Managing Director of Central and Eastern Europe

  93. 28/02 12:21

    Minister: Transactions with the Greek State will be further simplified in 2024

  94. 28/02 11:57

    24-hour strikes halt trains and ferries in Greece

  95. 27/02 17:25

    UN Tourism hails Saudi Arabia's historic milestone of 100 million tourists

  96. 27/02 15:00

    Greek Prime Minister: Relations with Armenia can become even more productive

  97. 27/02 14:26

    Wyndham: New growth cycle in Greece for the largest hotel chain franchise in the world

  98. 27/02 13:15

    Price cuts of up to 15% in important product categories in Greece after March 1

  99. 27/02 12:46

    Athens taxi drivers' protest rally in progress from Athinon avenue to Messogion

  100. 26/02 18:30

    Annual Summit of Women Political Leaders (WPL) to be held in Athens in April