Property on the Saronic Isles: Advantage of proximity is offset by high purchase costs
The changing nature of Attica’s coastline, where land use is being gradually converted into primary residential zones, is driving buyer interest away from those areas and onto islands not far from Athens, especially those in the Saronic Gulf. Close proximity to the port of Piraeus makes a summer home in the Saronic an ideal place to own, providing for short escapes from city life all year round in addition to the longer summer holidays. However, this advantage is offset by the high prices of both houses and land plots. Sure, there are opportunities for less expensive options but one has to be patient and look around regularly. Previously less popular islands, such as Aegina and Poros, are now on the list of ideal alternatives. Heavy investments made in recent years by construction firms on these specific islands have made finding a decent place much easier. Aegina The island has seen building activity skyrocket in recent years, excluding in its main port town – where there’s hardly any housing supply. The great deal of demand for holiday homes is focused on regions such as Perdika, where many luxury holiday home complexes are being developed, as well as in Marathonas, Sfentouri and Aeginitissa. Newly built house prices, starting at -2,000 and going up to -3,000 per square meter, depend, naturally, on the prospective real estate’s proximity to the sea and its view. According to local real estate agents, the island’s locations offering views of Piraeus – Souvala Vagia, Aghioi and Vathi – are less expensive, ranging between -1,500 and -1,800 for a square meter. Indicative of the booming housing market on Aegina is the fact that major construction firms have lately arrived and their current activities include a number of holiday housing projects. Spetses This picturesque island, unique in that all private car traffic is banned, is among the most popular destinations in the Saronic Gulf, offering easy access for both weekenders and summer holidaymakers. However, the shortage of land for development has hampered the growth of the local market, while excessive demand has pushed prices to extremely high levels. A preference for Spetses by members of Greece’s business, artistic and industrial elite has added to the island’s status and has had a direct effect on property prices. The few new constructions hitting the market each year are not enough to meet the surging demand, and this helps to keep prices up, and hardly affordable for most of those interested. In addition to Spetses-specific factors, the development of new constructions is hampered by the lengthy bureaucratic procedures involved. Hence, an existing older weekend cottage commanding some sea view may cost up to -3,500 per sq.m. Demand is especially high around the Old Harbor district, a nightlife hub boasting unique color. Many buyers are directing their efforts toward buying a place in the regions of Aghia Marina and Aghios Fanourios. Owing to the very low availability of existing or newly built homes on Spetses, demand in recent years has shifted toward also hard-to-find plots of land. Here, again, prices range depending on the kind of view offered and the proximity to the coast. Hydra Scheduling high-speed boats, in addition to the conventional ones, has contributed to cutting access time to Hydra, taking only about a hour from Piraeus. Domestic and foreign demand for housing has been growing steadily due to easy access on the one hand and to the island’s natural beauty on the other. Hydra has been attracting foreign holidaymakers and jetsetters for years, and many have managed to buy property, which explains the relatively higher presence of foreigners on this isle. Local real estate agents say demand is currently focused primarily on the main town, especially for homes close to the port, followed by the Vlichos and Kaminia regions. Another village expected to grab a share in the local holiday housing market is Mandraki, following the outcome of a court case which ruled that the area is not forestland. Despite prices having stabilized over the past few years, they are still very high – a newly built property (sold by the constructors) may cost up to -4,000 per sq.m. but there are very few available for sale. An alternative, opted for mainly by foreigners, is to buy an older, traditional cottage but these would cost not less than -150,000 and need to be extensively refurbished. Poros One of the Saronic islands closest to the Greek capital and a regional hub for all kinds of sailing vessels in the area, Poros is the rare case of an island that also offers access by land, via the village of Galatas on the Peloponnese. Such close proximity has helped to boost the housing market demand also in inland regions, e.g. the exceptionally beautiful areas of Lemonodasos and Plaka. Most of the interest for purchasing a home on Poros comes from people living in Athens and from foreign nationals, primarily those of France, Germany and Britain. Foreigners are fundamentally interested in buying homes in coastal regions, such as Karapoliti and Kalloni. House construction firms entered the local market a few years ago and the current supply in the newly built homes segment is regarded by market officials to be adequate. Another positive aspect is the lower prices, compared to those of Poros’s competitors, in the market of between -1,800 and -2,600 per sq.m.
