Winter holiday homes in Greece see prices rebound
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: Greece, Greek tourism news, Tourism in Greece, Greek islands, Hotels in Greece, Travel to Greece, Greek destinations, Greek travel market, Greek tourism statistics, Greek tourism report
Photo Source: Wikimedia Commons License: CC-BY-SA Copyright: Jean Housen
25/04 22:00
Greek FM talks with Kuwaiti counterpart on bilateral relations, regional cooperation
25/04 14:49
Prices of products in Easter Basket the same or lower in Greece than in 2023
25/04 13:57
25/04 12:44
Greece and China to ink cooperation protocols in the fisheries sector
25/04 09:53
Extended shop opening hours for Easter in Greece start on Thursday
25/04 02:19
Athens Airport voted as the best in marketing strategy at European awards in Denmark
25/04 02:10
President of Hellenic Republic visits La Chascona Museum in visit to Chile
24/04 21:31
Thirty-one Greek political parties to take part in European Parliament elections
24/04 21:25
Payment by bank cards now accepted on Athens Airport Express bus lines
24/04 14:12
Herculaneum papyri unveil more than location of Plato's tomb in Athens
23/04 23:52
Greece’s New Ambassador to the United States visits Queens in New York
23/04 21:49
Traffic regulations in Athens due to the Olympic Torch Relay on Thursday-Friday
23/04 20:59
President of Hellenic Republic wraps up visit to Uruguay at parliament
23/04 15:44
Greek government will pass legislation halving commission paid for POS transactions
23/04 15:03
Precise location of Plato's burial site unveiled by ancient papyrus
22/04 22:33
'Nature Positive' peport highlights new collaborative era in travel & tourism
22/04 21:25
22/04 20:37
Greek and Turkish delegations discuss Confidence Building Measures for 2024
22/04 18:29
Over 114,000 Greek Diaspora citizens register to vote by post in the European elections
22/04 13:40
19/04 01:29
Athens State Orchestra presents 'St. Matthew's Passion' by Bach on April 30th
18/04 21:49
Greek Climate Change Minister signs memorandum for Attica fire protection zones
18/04 20:32
'Easter Basket' and 'Godparents basket' to be put into effect next week in Greece
18/04 20:17
18/04 17:40
17/04 21:06
Thessaloniki Port: Performance growth for 2023 with record container throughput
17/04 20:57
Traffic regulations imposed in Athens for the 41st Peace Marathon on Sunday
17/04 20:52
17/04 18:15
Greek Foreign Minister addresses the 9th Our Ocean Conference in Athens
17/04 17:12
16/04 21:02
NHM hosts the Trial of Pericles at the Harris Theater in Chicago on April 17
16/04 20:17
Greece will invest $830 million to protect marine biodiversity
16/04 01:46
New York Greek Independence Parade honors 1821 and solemn Cyprus Anniversary
16/04 01:35
Olympic Games Paris 2024: Olympic Flame to be lit at Ancient Olympia in Greece
16/04 00:29
European Committee of Regions and UN release study on Rural Tourism
15/04 20:41
15/04 19:58
Minister: Greece is transforming into a hub for exporting quality agri-food products
15/04 18:51
Greek Environment Minister meets Chinese Deputy Minister of Natural Resources
13/04 00:13
UN Tourism and Croatia to launch Research Centre for Sustainable Tourism
12/04 00:03
2024 marks a critical year in the enduring strength of Greek-German relations
12/04 00:00
11/04 22:07
Ambassador: US committed to upgrade of Greek military and support NATO's SE flank
11/04 19:40
Hellenic Pride on display at rainy Chicago Greek Independence Day Parade
11/04 02:06
Delphi Economic Forum IX: Energy collaboration a 'key' in Greek-Bulgarian relations
11/04 01:58
UN Tourism launches investment guidelines for Albania sector
10/04 19:01
Greek FinMin: New package of economic measures in 2025 to lower taxes, raise pensions
10/04 18:25
Greek city of Nafplion hosts Mediterranean Yacht Show for ninth year running
09/04 23:57
Greek PM on Tilos: Innovative projects for a cyclical economy are of key significance
09/04 23:55
UN Tourism members promote agenda for Europe as region leads global recovery
09/04 23:46
HFS presents 1968, Rousing Docudrama about Greece’s First European Cup April 21
09/04 22:48
Stolen 7th-century BC oenochoe returned to Greece by Hanover museum, municipality
09/04 22:42
Greek civil servants confederation ADEDY to strike on May 21
09/04 21:55
Greek Migration Minister meets Senior US Coordinator for Lawful Migration
08/04 23:48
08/04 23:41
Elliniko-Argyroupoli Mayor marches in Greek Independence Philadelphia Parade
08/04 21:53
Project Voria casino complex in Maroussi moving ahead after environmental report
08/04 21:36
Minister: Up to 120 delegations to take part in 9th Our Ocean Conference in Athens
08/04 19:22
Direct flight from Shanghai to Athens offers access to key tourism market for Greece
08/04 18:31
AI conference to attract distinguished speakers to Thessaloniki on April 25-27
04/04 23:28
City of San Jose marks March 25 with 16th Annual Greek Flag Raising Event
04/04 22:16
Urban plans published for seven townships in Thessaloniki and Attica of Greece
04/04 17:24
FinMin: The new EU economic and fiscal framework is good for Greece
04/04 15:30
Greek PM meets with the chiefs of the international pharmaceutical manufacturers
04/04 00:15
Deputy Minister for Macedonia-Thrace meets US Embassy Deputy Mission Chief
03/04 20:12
Syracuse AHEPA Chapter 37 marks March 25th Greek Independence Day
03/04 18:10
Greece's Delphi Economic Forum on April 10-13 to focus on 'The Great Transition'
03/04 16:42
Minister: Industrial production has returned to the pre-crisis levels in Greece
02/04 18:06
30/03 23:21
Eleni Gatzoyiannis scholarship offered to Greek students at Boston University
29/03 16:44
3rd edition of 'This is Athens - City Festival' with 250+ events from May 1 until June 2
29/03 15:53
Athens Metro station Aghia Varvara to stay closed on Saturday and Sunday
29/03 13:55
Greek Foreign Minister for Economic Diplomacy concludes visit to Montenegro
29/03 12:00
29/03 11:51
28/03 18:41
Attica Region to channel 640 bln euros to services of vulnerable and disadvantaged groups
28/03 17:32
Greece to auction three-month T-bills on April 3, 2024 in a book entry form
28/03 15:46
Greece's Meteora Pyli Geopark added to UNESCO Global Geoparks network
28/03 14:44
IPTO announces framework agreement tender for undersea power cables in Greece
28/03 11:49
IOBE: Construction sector in Greece records robust growth and good prospects
26/03 23:51
St. Thomas Hellenic School honors 1821 and the Feast of the Annunciation in NJ
26/03 21:59
PM at Economic Club of Canada: Greece is an attractive investment destination
26/03 17:56
Greek State budget primary balance reaches a surplus of 3,378 million euros
26/03 11:45
Ancient Messene to get upgraded visitors' facilities after approval by Council
23/03 17:43
New requirements for 'Golden Visa' program to kick in on March 31
23/03 16:49
Athenians continue to head out of the Greek Capital for March 25 long weekend
23/03 16:47
Greek Parliament lights to be turned off for Earth Hour 8:30-9:30 pm
22/03 21:54
US President on Greek Independence Day: Alliance with Greece stronger than ever
22/03 19:51
High diplomacy and geopolitics at Delphi Economic Forum IX in Greece
22/03 19:32
Tax authorities enable payments with foreign bank cards in Greece
22/03 14:19
22/03 00:24
Greece ranks first on list of countries with fastest business environment progress
22/03 00:02
Hellenic Police acquires first electric VAN-type highway patrol vehicle
21/03 22:41
21/03 15:33
Unseen Museum presents "The stele of the twin babies" exhibition in Athens
20/03 22:48
Health Minister: 95% of Greek hospitals to perform afternoon surgeries
20/03 21:52
Greek Deputy Minister of Justice meets delegation from US Embassy in Athens
20/03 21:44
Greek Interior Minister to visit United States and Canada on postal vote
20/03 20:55
Philadelphia Icarians mark 85th Anniversary and organize Apokriatiko Dance
20/03 18:01
Development Minister: We continue the battle against high prices in Greece
19/03 22:28
President of the Hellenic Republic meets her Ethiopian counterpart in Athens
Herculaneum papyri unveil more than location of Plato's tomb in Athens
Greek FM talks with Kuwaiti counterpart on bilateral relations, regional cooperation
Extended shop opening hours for Easter in Greece start on Thursday
President of Hellenic Republic visits La Chascona Museum in visit to Chile
Thirty-one Greek political parties to take part in European Parliament elections
Prices of products in Easter Basket the same or lower in Greece than in 2023
Athens Airport voted as the best in marketing strategy at European awards in Denmark
Payment by bank cards now accepted on Athens Airport Express bus lines
Greece and China to ink cooperation protocols in the fisheries sector
Precise location of Plato's burial site unveiled by ancient papyrus
Greek Education Minister calls on universities to carry out final exams online
TUI chief forecast: Tourism sector in Greece to break all records during 2024
Mandarin Oriental, Costa Navarino and The Dolli among the world's best new luxury hotels in 2023
Consumers to see price cuts up to 18.1% in 3,000 Greek supermarket products as of Friday
Over 114,000 Greek Diaspora citizens register to vote by post in the European elections
IPTO chief: Starting construction on Greece-Cyprus-Israel power interconnector
Greek president organizes reception for diplomats at Presidential Mansion
Greek city of Nafplion hosts Mediterranean Yacht Show for ninth year running
Greece’s New Ambassador to the United States visits Queens in New York
Greek Environment Minister meets Chinese Deputy Minister of Natural Resources
'Easter Basket' and 'Godparents basket' to be put into effect next week in Greece
New publication: 'I am not Maria - I am Callas: Her real life and an eon of myths'
The bratti hotel signage at the XENIA 2023 exhibition & the Architect Show 2023 event
Greek PM inaugurates 'One & Only Aesthesis' tourist resort in suburb of Glyfada