| Ten years ago, Greece property was largely | | | | Skouloudis Director of Artec Homes (which has |
| overlooked. Buyers were either repeatedly drawn | | | | projects in Tavronitis and Kissamos). |
| to old favourites such as Spain and France, or | | | | Maria McLaren, an estate agent specializing in |
| looking further afield to the emerging markets of | | | | Crete property, says: "The cost of living here is |
| Morocco or Bulgaria. But interest in property in | | | | around 35 per cent less than Britain, and the |
| Greece remains alight for a number of reasons: | | | | crime rates are minimal. People buy in Crete |
| the healthy lifestyle, sunny climate, great beaches | | | | mainly because they already know and love |
| and food, and a superb quality of life for a | | | | it-they can switch off and relax here. It is the |
| fraction of the cost, to name but a few. | | | | lifestyle that attracts them and the friendliness of |
| An established democracy, Greece is a | | | | the people." |
| fully-fledged member of the EU, which means | | | | Not forgetting the Greek capital, property in |
| that for Europeans the purchasing process can be | | | | Athens remains popular with international |
| simple. It also gives Spain a run for its money on | | | | investors, and the expansion of the metro |
| the British package-holidaymaker front, which is | | | | system has increased interest in residences |
| good news for anyone planning to rent out their | | | | further away from the centre. |
| property in Greece. | | | | Lucy Russell managing director of Quintessentially |
| Property investors generally regard Greece as a | | | | Estates says: "Athens is the gateway to all the |
| strong market due to its healthy tourist industry, | | | | islands in Greece and has easy access from the |
| which is backed by the government. Prices remain | | | | UK. Properties vary from the cheaper apartments |
| very affordable in many parts, and homebuyers | | | | around £200,000 to grandiose villas in the |
| can purchase far more for their money than in | | | | millions. Athens tends to attract people buying |
| other popular European holiday destinations. Most | | | | second and third homes rather than holiday home, |
| rural and coastal areas provide an idyllic lifestyle | | | | and house prices have risen around 40 per cent in |
| that many British retirees choose to adopt. | | | | the last five years. The rental yields are fairly low, |
| In terms of the global recession, Greece is holding | | | | at around two to three per cent, and the |
| out according to some experts. Mike Saunders, | | | | average rent is around between £2,000 to |
| marketing director at Snobby Homes says: | | | | £3000 per month." |
| "Property prices on the whole remain unchanged. | | | | Kefalonia, the setting for Captain Corelli's Mandolin, |
| Personal borrowing in Greece is nowhere near so | | | | is the largest of the seven Ionian Islands. Despite |
| highly geared as it is in the UK. The Greek banks | | | | its film fame, Kefalonia largely unspoilt, with |
| have not been caught up in sub-prime lending, so | | | | low-profile tourism. As a mountainous island of |
| mortgages are still available for UK buyers to | | | | almost 45,000 inhabitants, most residents are |
| purchase property in Greece." | | | | gathered in the island's capital and main port, |
| So if the overall prognosis for Greece is good, it | | | | Argostoli. |
| may well prove a calm investment spot among a | | | | Lucy Russell advises: "Kefalonia is one of the most |
| tempest of economic uncertainty. Greek sellers | | | | popular of the Ionian Islands. There is still an |
| appear reluctant to drop prices, hoping to weather | | | | emerging property market, and a number of |
| the storm, although there is the odd bargain to be | | | | areas are still undiscovered. Prices of property in |
| had. | | | | Kefalonia are rising on average between 10 to 15 |
| Robert Key, senior partner at Cluttons Greece, | | | | per cent per annum, depending on the location |
| concurs saying that despite what is happening in | | | | and type of property. The island has become |
| the rest of Europe, the market for Greek real | | | | popular with investors who are looking to |
| estate is holding up well. "Property prices increased | | | | purchase a property which they can use as both |
| in the first half of 2008, and there was only a | | | | a holiday home, and receive a rental income by |
| slight drop in values towards the end of the year. | | | | offering the villa for holiday rental either |
| At time of writing the average price of residential | | | | independently or through a tour operator |
| properties in Greece has fallen by five to 10 per | | | | specializing in villas." |
| cent. It is true that the number of transactions | | | | Robin Barrasford, managing director of Barrasford |
| taking place is around 40 per cent less than this | | | | & Bird Worldwide says: "Greece has a strong |
| time last year - but this is due mainly to the | | | | second home and holiday market, coupled with |
| banks having tightened lending criteria. | | | | strict planning regulations that keep the housing |
| "Prices may still fall a little in 2009, but any drop is | | | | supply low, this balancing act between supply and |
| not expected to be significant. This is due mainly | | | | demand means the Greek property market is |
| to Greeks having one of the highest rates of | | | | one of the most resilient in Europe today, despite |
| home ownership in Europe - hence mortgage | | | | the tough economic times. |
| repayments and forced sales are not a worry for | | | | "Samos benefits from easy international access, |
| most. For those willing to research the market, | | | | with direct flights from the UK. This island has an |
| however, properties with higher price reductions | | | | instantly recognisable topography and is popular |
| do exist. These come mainly in the form of price | | | | with the yachting fraternity. The majestic |
| reductions by developers who have | | | | mountain sides and green cypress laden valleys, |
| over-borrowed and must now meet loan | | | | with their patchwork of vineyards makes Samos |
| repayments." | | | | one of the most beautiful Greek islands and |
| He adds: "Overall Greek property represents | | | | property in Samos a traditional favourite of |
| excellent value for money when compared to | | | | international buyers." |
| other European destinations - and it's a market | | | | Irini Tzortzoglou, deputy branch manager of |
| which historically holds its value. Greece with its | | | | Piraeus Bank UK, says: "Greece and her islands |
| diverse mountain ranges, lakes, valleys, island | | | | remain a largely unspoiled haven for those looking |
| paradises, ski-centres and the cleanest of seas | | | | for a holiday home or investment property in a |
| offers everything one could desire - with heaps of | | | | mature European country. Although often cheaper |
| culture. And that's without mentioning the cuisine... | | | | than comparables in Italy and France, Greece has |
| "Be it an investment in land, a villas or an | | | | retained an air of exclusivity, which means that it |
| apartment, we remain confident that Greece will | | | | remains popular with the more discerning |
| continue to be a safe and profitable place to | | | | purchaser. |
| invest in property - providing the advice of a | | | | "This in turn largely removes the short-term |
| reputable surveyor and lawyer is taken." | | | | investor from the market, which makes for more |
| However, Babi Prokas of PK Developments paints | | | | stable long-term property values. Mortgages |
| a somewhat bleaker picture of the property | | | | remain available for property purchases - it should |
| market in Greece, claiming that the recession has | | | | be pointed out that no Greek banks participated in |
| hit it so hard there that not only is there a virtual | | | | any of the toxic debt which has led to so many |
| standstill in construction, but that violence and | | | | problems." |
| theft is on the rise among frustrated and | | | | Jonathan Salsbury, Cybarco UK manager still holds |
| unemployed youths. | | | | faith in the Greek market. "Sales have held up |
| "Greece has over 160,000 newly built houses that | | | | well in Greece, because although the numbers of |
| haven't been sold and that number is expected to | | | | British buyers reduced during 2008 (due to the fall |
| climb this year," Prokas estimates. "I believe that | | | | of the pound against the euro), other |
| it will take a good six months to see the beginning | | | | North-Europeans who are in the Eurozone have |
| effects of the stimulus packages that the G20 | | | | been continuing to buy, seeking out value for |
| nations have committed to. I believe we will see a | | | | money," he explains. |
| price stagnation in the property market for the | | | | He adds: "Both Crete and Rhodes are well |
| medium term, before prices rebound." | | | | established holiday destinations and continue to |
| In terms of location, there are hundreds of | | | | attract buyers who have been drawn to the idea |
| inhabited Greek islands, so choice is by no means | | | | of owning a home in the sun or dream of a |
| limited. Crete is one of the most appealing areas | | | | happy, relaxed retirement. Athens will continue to |
| for Brits who are looking for a permanent base | | | | gain interest from investors, particularly those |
| or a holiday home. Every year its sandy shores, | | | | who had avoided the emerging Eastern-European |
| green hills and olive groves attract almost a million | | | | capitals, and now favour established European |
| British holidaymakers. | | | | capitals that offer long-term rental demand." |
| "Over the last two years, there has been an | | | | Salsbury believes that the Greece property |
| increase of almost 40 per cent in the number of | | | | market is comprehensive with opportunities |
| Brits purchasing property in Crete. Four out of | | | | throughout the country, and there is plenty of |
| five new property buyers are British and the final | | | | evidence that Greece will succeed in its aim to |
| statistics show that more than 15,000 Britons are | | | | become one of the world's top five tourist |
| owners of a property in Crete," says George | | | | destinations within the next ten years. |