Around The World In 80k Greece
Ancient Greece may have laid the foundations for modern culture and civilisation including democracy philosophy education and a host of literary and mathematical concepts but it is foundations of an entirely different kind that are now occupying the minds of savvy British buyers. Heritage is only one of the many draw cards of a country that also has azure islands Mediterranean sunshine and now budget direct flights from the UK to attract secondhome buyers.
The real estate market in Greece is already an established one with a solid internal and international market to regulate and stimulate prices which have been rising steadily over the past decade. Eighty per cent or more of buyers are lifestyle buyers meaning that there is a strong resale market prices are realistic and not driven by investors” says Spyros Mantzos of A Property in Greece. But with an established property market as well as the sharp appreciation of the euro which Greece joined in 2001 properties for sale under 80000 are not as widespread as even a few months ago. However if you know where to look there are still bargains to be had in the whitewashed idylls of the Greek islands and mainland.
With over 150 of the 2000 or so islands that make up Greece inhabited not to mention a mainland teaming with cities villages harbours and beachfront there is perhaps too much choice when deciding where to buy. John Batty managing director of Greek property specialists Aegean Blue says traditional investors are still focused on the established destinations like Crete Santorini Corfu Zakynthos and Mykonos. “Over the last year we have also seen the first ‘structured products’ arising in Greece offering a comprehensive package of services including guaranteed rental income for the first years furnishing packages and a number of exclusive services including spas marinas sport facilities etc” Batty adds.
This maturation of the types of property products available to foreign investors along with the takeover by EasyJet of GB Airways in December widely seen as a harbinger of budget flights into the country is expected to have a stimulatory effect on the market as the influx of visitors fuels holiday rental demand and in turn property demand.
Greece can also thank the Athens Olympics for raising the countrys profile and stimulating massive infrastructure investment which has improved its already significant attractions. Capital growth has been around ten to15 per cent per annum over the last few years and rental yields can be as high as 7.5 per cent according to Mantzos. Of course these vary according to the property and location with Batty arguing that average returns range between four and six per cent: “Some developers offer guaranteed rental incomes for their projects targeting pure investors. In these cases four to sixyear rentals are offered on an average of five per cent per annum. Most desirable destinations are the northern coast of Crete Zakynthos Kefalonia Santorini and Mykonos where the highest yields can be achieved. Upcoming markets worth considering are the less developed island of the northern Aegean Sea including the Sporades mainly Skopelos and Skiathos and Samos.
Crete is the largest of the Greek islands and deservedly one of the most popular tourist destinations in the Mediterranean. In spite of its popularity and relative upward price pressure properties under 80000 are still to be found with twobedroom houses in need of work starting at around 50000 38300 according to Oonagh Karanjia of Crete Property Consultants. Renovated old stone houses can start from around the same price for a onebedroom property while apartments a few metres from the beach start as low as 55000 42150. For example studio and onebedroom apartments at Makrigialos in the southeast of the island around 25 minutes drive from Sitia start from 48000 36800 and are just 50 metres from the beach. In Papagianades a twobedroom renovated stone house with courtyard roof terraces and sea views is for sale through Crete Property Consultants for 91000 69750.
A Property in Greece is selling a twobedroom 60squaremetre bungalow in the 200yearold village of Loutra around ten minutes from the beach surrounded by olive trees and with panoramic countryside views for 104000 79700. Foremost Villas has a twobedroom apartment for sale at Drapanos Krystyna set in the hills inland from Kalives at the entrance to Souda Bay with shared pool and views of the White Mountains for 93000 71250. If you fancy taking on a renovation project Artec SA is selling a 60squaremetre stone house set in a 180squaremetre plot in the Apokaronas area about 30 minutes from the airport at Chania; building permission for restoration work and extension of the property is already in place for the 55000 42150 home.
The verdant island of Corfu in the Ionian Sea off the west coast of Greece can also claim a fair bulk of the countrys visitors who come to enjoy its mild Mediterranean climate and numerous architectural and archaeological attractions. Spiros Analytis managing director of Corfu Property Agency says a combination of planning laws forestry and archaeological restrictions prevents Corfu from being turned into a concrete jungle and limits supply of property which maintains prices. “The limited property supply rolls over to the rental market as well. Rental accommodation beyond large hotel accommodation which also fills to capacity during summer months is highly soughtafter. Privately owned properties thus yield excellent rental income.” He adds that “returns of 6six to eight per cent are available through rentals via tour operators; and given the fact that there is excellent rental income achieved there has been in increase in demand for such properties.
Corfu Property Agency is selling a groundfloor onebedroom apartment 40 metres from the beach in Acharavi north Corfu with a large balcony for 78000 59800. For offplan property near the beach of St George in southwest Corfu the company is offering a terrace of three 38squaremetre onebedroom cottages each with a veranda area and small private garden for 75000 57500 for the middle cottage or 85000 65150 for the cottages on either end.
While the main islands attract a proportionately large quota of visitors to Greece their popularity has spawned a second tier of emerging islands that have started to draw their own wave of potential property investors. Top of this list is Skopelos where the film version of Mamma Mia was shot last year which is luring quietliving Greek island retirees and holidayhome buyers alike. The island is part of the Sporades chain and there are direct flights from the UK to nearby Skiathos; from there it is a 30minute hop by hydrofoil to the port town or there is also a hydrofoil service from the mainland. Aegean Blue is selling a range of apartments at Skopelos Village 500 metres from the beach starting from 97000 74300 for a onebedroom apartment. The apartments are situated on the bay opposite the capital port town of Skopelos and owners can walk into the town in under ten minutes.
On the island of Samos in the Aegean Sea Barrasford and Bird is developing a resort and spa at Halcyon Hills which will offer guaranteed rental returns when completed. Although it is above budget for individual buyers the resort will also be offered on a fractional ownership basis that will cost from 16375 to 32750 for 1/8 or 1/4 of the property.
The beachside idyll of the Greek islands may have lured the majority of secondhome buyers but there is an investment case to be made for buying on the mainland. In response to the Olympics in 2004 property investment expert Obelisk says that “demand for rental accommodation was boosted and in turn heightened investors’ interest in new residential opportunities particularly within Greece’s major cities.” The scene of the Olympics and the historic capital Athens has seen sustained price rises of around ten to15 per cent in the last few years according to estate agents Des Res. The company has onebedroom apartments for sale in Larissis starting from 69000 or similarsize offplan properties in Athens starting from 73000.
There are no legal restrictions on EU residents buying in Greece and the process is relatively simple but fees and taxes of around ten to 15 per cent on top of the purchase price must be factored in. This includes transfer tax on resale properties or VAT at 19 per cent on new builds municipal tax lawyer’s and notary fees and land registration. Greece’s Piraeus Bank which has a UK arm to deal with property investment in Greece and Bulgaria suggests buyers should discuss repayments with their lender so that the potential exchange rate risk between the euro and sterling can be covered from the start. This is particularly pertinent considering the currency movements in recent months.
About the writer:nbsp;nbsp;Kathy Sandler for Homes Overseas Property for sale in Greece advice about buying property in Greece overseas property investment advice and international property news.
International property experts since 1965.
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