Holiday home market turns into a top performer

Greek holiday home market seen growing rapidly

Greece's holiday home market is expected to continue growing rapidly over the coming years and is one of the economy's most promising sectors, said Algean Property on Thursday.

In a report titled "Back on Track", Algean said that demand for holiday homes in Greece has risen in recent years, with new buyers from the Middle East and Turkey, joining traditional buyers from the UK, Italy, France, Germany and Scandinavia. Supply levels have remained steady up until now but that is set to change with a number of new tourist resorts under construction that include holiday homes being sold onto property investors.

"Already, luxury hotel resorts provide the option of buying a holiday home within their premises, contributing to the improvement of holiday home stock," said the report.

The emergence of foreign demand for holiday homes, particularly luxury beach houses, is a bright spot in the Greek economy that is struggling to emerge from an eight year economic downturn.

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Holiday home prices have largely remained stable, with yields on popular islands such as Mykonos and Santorini between 6.4% to 8.4% , ranking among the highest in offer in the Mediterranean.

"Despite the overall positive climate in the holiday home sector, however, the total number of purchases is still much lower than in the pre-crisis years and the real potential of the market," added the report.