With a notable increase in sales and rental prices, particularly in 2023, Crete has become a highly sought-after location for property acquisitions. Exquisite homes in ideal locations, especially on the coast, saw a dramatic increase in demand and foreign investment, driving up prices across the board.
Predictions for 2024 suggest that home price growth in Certe may slightly decrease or moderate. See the report in Greek via Neakriti.
Throughout 2023, much like in preceding years, the real estate landscape in Crete saw an uptick in demand and foreign investments, notably in luxurious properties in prime spots and coastal locations.
Luxury villas in prominent areas and on the seaside were particularly popular with international investors and buyers in Crete’s real estate market in 2023, as they had been in years past.
Given Greece’s market’s relative affordability compared to Western European countries, there was a large amount of interest from overseas purchasers. The rental market has been steadily rising over the past few years, especially for prime real estate in popular cities and tourist destinations. Prime locations now fetch over 15 euros per square meter, and rent costs have increased by up to 70% compared to twenty years ago. Rent is most expensive in Chania, next in Heraklion, Rethymno, and Agios Nikolaos. With minor price differences, the rental prices in these locations are similar to Chania’s.
Meanwhile, despite a drop in new mortgage applications, the increased demand drove up real estate prices. In particular, you may get two-bedroom detached luxury homes with gardens, pools, and sea views for 250,000 to 350,000 euros. There are 2.5–3 million euro houses in the works in the southern half of Crete, namely in the areas surrounding Agios Pavlos, Agia Galini, and Plakia.
Even if a market downturn is far from certain in 2024, we may see a slowdown in price hikes. It is still being determined whether foreign investment flows will continue, and Greek purchasers are showing signs of reluctance. In any case, it seems that the Crete real estate market may keep going strong. In 2024, property values may see a more muted rise due to factors such as the paucity of high-energy standard buildings and constant construction costs, which might keep demand exceeding supply.