Demand for property to stay strong and keep prices high

High inflation and robust demand for Greek property from foreign buyers are seen keeping price growth high in 2022, in the double digits, despite the Ukraine war weighing on broader market conditions, said Giorgos Gavriilidis, CEO of Elxis, a real estate company specializing in holiday homes.

Greece’s property market continued to perform solidly in 2021 as data released by the Bank of Greece on Tuesday showed that apartment prices jumped by 9.1% in the fourth quarter. The figure averaged out at 7.1% for the year.

“We expect prices to keep rising at around 10% in 2022. The cost of construction materials has risen sharply, while the appetite for Greek homes from Europeans remains strong,” said Gavriilidis.

Elxis, which has offices in Greece and the Netherlands, deals mostly with Dutch, German and Belgian buyers. The company has seen its business double in recent years as Greek real estate prices remain well below EU levels, providing an attractive alternative to countries like Spain and Italy.

Research shows that Greek assets are the best performers in the Mediterranean as rents keep up with advancing prices. An Algean Property report said Mykonos topped a yield list in the region with a return of 7.4%, against 4.3% in Nice and 4.2% in Marbella. Paros came in second on the list with a yield of 7.1%, with Santorini in third (6.3%).

Last week, Elxis took part in a second-home fair in the Netherlands, promoting holiday houses and apartments across Europe, with over 8,000 attendees. Greece drew considerable interest, reported Gavriilidis, with buyers largely focusing on Crete and the Ionian Sea.

“There is a shift to quality among foreign buyers in Greece as an investment in Greek real estate is seen as a safe haven and this is particularly important when uncertainty is high,” he highlighted.

“High inflation is boosting this trend as many investors prefer to put their money in a home with good potential rather than watch its value erode in a bank account,” added Gavriilidis.

Official figures show inflation rose to 7.2% in February from 6.2% in January, on high energy and food costs, with no drop-off expected until the year’s second half, economists say.