Foreign investors are eager to invest in holiday homes in Crete, with some going above and beyond to secure luxurious, fully equipped, and modernized villas with sought-after amenities, including gardens, swimming pools, and parking spaces.
Luxury seaside homes command premium prices ranging from €3,000 to €5,000 per square meter:
Elounda, Hersonissos, and Agios Nikolaos are highly sought-after destinations for discerning investors seeking opulent coastal residences. The allure extends beyond the shoreline, with inland traditional settlements and tourist areas attracting interest for their rustic charm.
The Greek domestic demand for countryside homes has waned, while international buyers, particularly from Israel, Iraq, and Turkey, and expatriates from Germany, Switzerland, England, and America, are fueling a surge in demand.
These affluent buyers are willing to invest substantial sums, from €250,000 to €500,000 or more, for lavish amenities like newly constructed, modernized homes with gardens, swimming pools, barbecue areas, and proximity to the sea.
In the eastern region of Crete, prices for new single-family homes start at €3,000 per square meter for inland properties and soar to €4,000-€4,500 per square meter in coveted Elounda. Overall, seaside areas command higher premiums, while inland properties offer more affordability.
Northern Heraklion boasts residences ranging from €3,500 to €5,000 per square meter for seaside properties with landscaped surroundings, lawns, gardens, and infrastructure. Older homes command lower prices, typically between €2,000-€2,500 per square meter.
However, the owner’s specific needs and circumstances ultimately determine each property’s price.
Reflecting the burgeoning international demand, the spitogatos.gr platform reported an 11.8% increase in international inquiries for Greek countryside homes in the first quarter of 2024, contrasted with a 4.2% decline in domestic demand compared to the same period in 2023. As domestic buyers prioritize smaller, more affordable city apartments, the allure of Crete’s luxurious coastal living continues to captivate affluent global investors.
Other Factors Influencing Crete’s Real Estate Market
The appeal of the Golden Visa program, which offers residency permits to non-EU citizens who invest in Greek real estate, has contributed to the continued growth in this market. With the program’s current terms closing, buyers are eager to secure properties before the requirements become stricter.
The Greece Golden Visa Program’s investment threshold is poised to increase from the current minimum of €250,000 to a substantial €400,000. However, investors have a window of opportunity to secure the existing €250,000 minimum, provided they remit a 10% deposit by August 31, 2024, and complete the investment by December 31, 2024.
Regarded as one of Europe’s most affordable investment residency programs, Greece’s Golden Visa initiative offers prospective applicants and their families a gateway to visa-free travel within the Schengen Area, typically within three to four months of application. This lucrative opportunity presents a myriad of advantages, including:
- Unrestricted movement across Europe’s Schengen Zone, unleashing a realm of exploration and convenience.
- No mandatory residency requirement in Greece, granting flexibility to reside wherever desired.
- Expedited acquisition of residence permits, often within a mere 90 to 120 days from application.
- Perpetual validity of residence permits, eliminating the need for frequent renewals.
- The ability to generate passive income by renting out the investment property.
- Inclusive coverage for the applicant’s immediate family, encompassing spouse, children under 21, and dependent parents.
- Eligibility to apply for coveted Greek citizenship after seven years of residency.
- The freedom to own shares and receive dividends from Greek-registered companies fosters financial independence.
The program mandates specific investment criteria to secure this invaluable residency, meticulously crafted to cater to diverse preferences and financial capabilities. The qualifying options encompass:
Real Estate Investments:
- Acquisition of property valued at a minimum of €250,000, excluding applicable taxes. Alternatively, a higher threshold of €500,000 applies to properties in the prestigious locales of Mykonos, Santorini, Thessaloniki, and select municipalities within Athens.
Hospitality Investments:
- A 10-year lease agreement for hotel accommodations or furnished tourist residences within accredited tourist complexes, as specified in Article 8 of Law 4000/2001.
- A 10-year timeshare hotel accommodations agreement governed by Law 1652/1986.
As the Cretan real estate market continues to evolve, the influx of international buyers and the changing domestic preferences are reshaping the landscape. With rising prices and new regulations on the horizon, the island’s allure as a prime destination for holiday homes and permanent residences remains undeniable.
