The Greek holiday home market is now almost exclusively controlled by foreigners, as the vast majority of transactions concern investors from abroad.
The pandemic may have raised significant obstacles to the completion of many property transfers in 2020, but it appears that demand is so high that prices did not come under pressure, a trend that also became obvious in the main residence market.
According to the latest data by the Holiday Home Price Observatory of Geoaxis Property & Valuation Services for five key Aegean islands, the second quarter of 2021 saw an average annual increase of 5.2% in prices, and of almost 7% compared to the second quarter of 2019, indicating that prices continued to rise through the pandemic.
The biggest percentage increase was recorded on Kea, at 7.9% year-on-year, with the average asking price reaching 1,845 euros per square meters, up from €1,710/sq.m. a year earlier. Mykonos showed a 6.6% hike to €2,375/sq.m., against €2,230/sq.m. last year. On Paros the average rate came to €1,935/sq.m., which was 5.9% higher than the €1,830/sq.m. rate a year earlier.
Santorini saw a far smaller rise, by just 1%, to €1,850/sq.m., though Kythnos’ holiday homes became 4.4% more expensive at €1,420/sq.m.
“The results of a more in-depth analysis of the data for the last nine years are even more significant, as they show that, contrary to other property categories, summer holiday homes offer remarkable stability, both in the period of decline and in that of advance,” says Geoaxis head Giannis Xylas. “Price levels currently lag 2013 levels on the five islands we monitor by only 5.63%.”
In the case of Mykonos the rates are almost the same as eight years ago, down by just 0.75%, while on Kythnos rates are still 11.6% below those of 2013.
According to the Geoaxis analysis, “Mykonos and Santorini have created an exceptionally expensive category that is separate from the rest of Cyclades, with the exception, perhaps, of Paros.”
It is worth noting that when it became clear in 2020 that it would be tough for many transactions to be completed, an increased share of residences were registered on short-term rental platforms, though since March this has started to decline on sales expectations.