Property Prices

Until around 1990 there were few estate agents offering services to prospective foreign buyers, although more have appeared as Greece has become more popular. Greece is largely undeveloped with most areas as unspoilt as Portugal and Spain were 20 or 30 years ago. It has a largely untapped holiday-home market and many areas have good investment potential.

There are strict controls over development and renovation to ensure that the local character is maintained, particularly in coastal and country areas. Old village houses are reasonably priced and in plentiful supply in most areas, although they usually require extensive modernisation and renovation and are seldom a good investment. Many foreign buyers buy a plot of land and build a new house. Note that you can expect to pay a premium for a coastal or island property.

Prices are stable in most areas and largely unaffected by world recessions. The main foreign buyers are the British, Germans and Scandinavians, who have been joined by Russian and other Eastern European buyers in recent years. The British tend to prefer the islands and the Peloponnese, and the Germans the mainland.

One of the things that attracts many buyers to Greece is the relatively low cost of property compared to many other European countries. Home ownership is one of the highest in Europe (over 80 per cent), although the locals don’t generally buy property as an investment, and you shouldn’t expect to make a quick profit when buying property in Greece.

Property prices have risen considerably in the last decade, although not by as much as in some other countries. The biggest rises have been seen on some popular Greek islands, where prices have risen at a much faster rate since the country joined the European Union and restrictions on foreign ownership were largely abolished for EU citizens.

Note that there’s sometimes a tendency to over-charge foreigners in some areas of Greece, therefore it’s important to compare local prices (i.e. what the locals are paying!) or find a good agent. Prices in winter tend to be lower than those advertised in the summer and if you spend several months in an area and establish yourself as a ‘serious’ buyer among the locals, your chances of buying for a lower price may increase.

In contrast to the wild fluctuations seen in some countries, property prices generally rise slowly and steadily in Greece, and are usually fairly stable, particularly in rural areas where there’s little local demand and few non-resident owners. The exception to this is Athens where prices have increased sharply over the last few years.

Apart from obvious factors such as size, quality and land area, the most important consideration influencing the price of a house is its location. Property is least expensive in rural areas (on the mainland in Greece), where a farmhouse or village house may cost the same as a studio apartment on a popular island or in a fashionable resort. The quality of property varies considerably in respect to materials, fixtures and fittings, and workmanship. Value for money also varies enormously and you should compare at least five to ten properties to get a good idea of their relative values. Most property is sold freehold.

When property is advertised, the total living area in square metres (written as m2) and the number of bedrooms are usually stated. When comparing prices, compare the cost per square metre of the habitable or built area, excluding patios, terraces and balconies, which should be compared separately. If you’re in any doubt about the size of rooms you should measure them yourself, rather than rely on the measurements provided by a vendor or agent.

Note that a garage is rarely provided with apartments or townhouses, although there may be a private parking space or a communal off-road parking area. Some apartment blocks have underground garages, and lock-up garages may be sold separately for apartments and townhouses. Villas usually have their own car port or garage. Note that without a garage, parking can be a nightmare, particularly in cities or busy resort towns, developments in summer and even some villages.

Costs vary considerably depending on the location and whether you buy a new or an old property. Athens is expensive – not that many foreigners would choose to live here unless they work in the capital.

New apartments on the islands cost from around €70,000 for one bedroom, €100,000 for two bedrooms and €120,000 for three bedrooms, although they can be much higher in a fashionable resort, Athens or on a popular island. A new two-bedroom townhouse or villa costs from around €105,000, although prices rise to €200,000 or more in a good location on a small island. A three-bedroom, two-bathroom villa costs from around €150,000 (from €200,000 with a pool) and a four-bedroom villa on a large plot from at least €300,000.

Inland properties are much cheaper than coastal properties. Old stone houses are common in many areas (particularly Crete) and can be purchased from as little as €50,000. However, renovation costs are likely to be at least twice the purchase price, depending on how much of the original structure you can retain. Note that most old village houses tend to be small, e.g. 50 to 75m2, with only a few rooms and probably not a bathroom or toilet.