ECONOMY

Domestic and foreign demand for holiday properties in the Cyclades remains strong

The holiday home market in the Cyclades group of islands is continuing to growth at a pace similar to recent years, according to local real estate agents, with high demand from both domestic and foreign buyers. A noteworthy aspect of this specific market is price stability, although at the already high levels that were reached in recent years. One new trend is the interest shown by domestic and international groups and developers in purchasing land at selected locations around the Cyclades. Such groups are currently moving to facilitate the creation of conditions that will allow them to develop holiday home resorts. Their targets primarily include attracting interest from foreign markets, for example Britons, who are now starting to withdraw from Spain’s holiday home market at increasingly rapid rates. Even though official data are minimal, a recent survey by the UK-based HiFX fund management company showed that British repatriated funds doubled this year as a result of Britons selling properties they had owned, especially in Spain and France. In Greece, however, such large areas for the development of holiday home resorts are in short supply on most islands, which gives investors and developers a hard time. An important reason for the growth of the Cyclades holiday property market has surely been the improved access in recent years, facilitated by better and faster boats. However, travel costs are quite high, especially for families, and one should keep in mind that during peak periods, particularly the summer months, it is sometimes difficult to book a ticket. However, the holiday property market in the Cyclades presents a healthy picture, with one of the best examples in terms of price stability provided by the island of Myconos, where the supply of newly built properties is unable to meet higher demand. This helps prices remain high, up to -5,000 per sq.m., even though it may be possible to purchase a residence for much less, at -2,000 per sq.m. Some of the recently popular areas on Myconos include Lia, Kalo Livadi and Poulakia, but demand is also high in Ai-Giannis, Aleomandra, Tourlos and Fanari. In the current summer season, an increase was recorded primarily in the prices of land. Plots within the town plan are priced up to -360 per sq.m., while those outside are around -120 per sq.m. Most interest from prospective property buyers from outside Greece has been from from the UK, Germany and Scandinavia. Santorini is another example experiencing high demand for property in recent years, especially following the scheduling of high-speed boats, which have reduced the traveling time to around 4.5 hours. Of course most buyers dream of owning a traditional cave-like home perched high on the crater. Here, the average price may be as high as -4,500 per sq.m. Minimal supply of such houses, however, drives most buyers to look for a place in other popular areas, such as Oia, Fira and Imerovigli. Akrotiri is a popular area for developers of holiday houses. The cost of purchasing a home not located on the crater is rarely over -2,500 per sq.m. The holiday house market is also flourishing on Paros island, which has now become a hot weekend destination for many holidaymakers. A hill located right in the middle of the island offers many choices for the development of holiday homes. Maisonettes with a floor area of between 70 sq.m. and 120 sq.m. are mostly available in areas such as Piso Livadi, Chrysi Akti Ambela and Santa Maria, while the island’s most expensive locations for purchasing a cottage-style home are Voutakas, Faraggas and Santa Maria. Athenians have expressed particular interest in purchasing property on Paros.