Selling prices on Greek island homes jump up to 26pct
Buyers looking for a beachfront home on a Greek island are faced with a mixed market as asking prices on Serifos, Naxos and Paros rise rapidly, but drop on Skopelos and Patmos.
Demand has been picking up in Greece’s residential housing market in recent months as the economy rebounds from last year’s steep pandemic-induced recession and easing travel restrictions help attract foreign buyers.
Real estate agents say that buying activity from foreign nationals has been mostly focused on southern Athens, along the coastal area called the Athens Riviera, and the islands.
Data collected by Spitogatos.gr shows that the asking price for homes on the islands of Serifos, Samothrace and Poros topped the list jumping in the last year by 26.2 percent (to 2,649 euros/sq.m) 23.1 percent (to 1,066 euros/sq.m) and 20 percent (to 2,000/sq.m) respectively.
Next on the list come Antiparos, Naxos, Kythnos and Paros with hikes in selling prices reaching 17.6 percent (3,823 euros/sq.m), 15 percent (2,697 euros/sq.m.), 12.8 percent (2,255 euros/sq.m) and 12.5 percent (2,812 euros/sq.m) respectively
More than eight in ten potential home buyers on the Greek islands are foreign nationals, according to Georg Petras, CEO of Engel & Völkers in Greece, with strong interest coming from central European countries,
Strong interest is noted especially from Central Europeans coming from the DACH regions (45 percent from Germany, 15 percent from Switzerland and 10 percent from Austria) as well as the Benelux countries and the USA.
On the downside, asking prices on the islands of Thasos, Ikaria, Skopelos and Patmos showed the biggest drop, falling 9.2 percent (1,309 euros/sq.m), 7.1 percent (1,300 euros/sq. m), 5.6 percent (1,062 euros/sq.m ) and 5.2 percent (3,359.7 euros/sq. m) respectively.
Next come Leros, Lesvos and Kea where asking prices dipped by 3.4 percent, 2.8 percent and 2.7 percent.
Demand solid demand for a holiday home in Greece, market experts warn that a recent property tax hike in the country may weigh on demand.
In June, the Finance Ministry announced an increase in the ENFIA property tax bill paid by property owners on popular islands, such as Mykonos and Rhodes.
The tax value of some homes on Mykonos, for example, jumped to 3,800 euros per square meter, from 1,200 euros. Sharp increases also appear in districts on the islands of Rhodes, Kos, and Kefalonia. The changes will take effect as of January.