Danos: buyer profile of residential properties in Crete

According to Danos, this trend is likely to continue in the coming years. The expected completion of the new Kastelli Airport by 2028, combined with the progress of works on the Northern Road Axis of Crete (BOAK) and favorable forecasts for the tourism sector, is expected to increase the number of visitors to the island, thereby sustaining current market conditions.

Changing Buyer Profile
As a result of recent trends, the profile of residential property buyers in Crete has shifted significantly compared to the past. Until a few years ago, the typical buyer sought properties larger than 90–100 sq.m., mainly for personal residence, and primarily relied on bank financing.

Today, under the new market conditions, a different buyer profile has emerged, characterized by the following features:

• Preference for smaller units: Buyer interest has shifted toward smaller residences, typically 60–70 sq.m., as rising prices have made larger units less affordable. These properties meet the needs of individuals seeking functional homes for personal use (young couples, singles, divorced individuals, etc.), as well as investors aiming to rent them either long-term or short-term. In well-developed tourist areas, demand for short-term rental properties remains exceptionally high.
• Increased use of own funds: Many transactions are now completed using personal funds, whereas previously most purchases relied on bank loans. Growing numbers of buyers prefer using their own capital due to challenges in obtaining financing, including high interest rates or delays that could jeopardize agreements with sellers.
• Investment-driven purchases: A significant portion of transactions involve purely investment-driven acquisitions. Rising rental levels make residential properties attractive, as owners can generate high yields with relatively low risk. Short-term rentals continue to draw investors, boosting demand for small and mid-sized units, especially in tourist-heavy destinations. Each year, the number of homes offered for short-term rental in Crete increases, reflecting the perceived profitability of such investments, particularly as tourist inflows remain strong. For example, in 2025, air arrivals reached 4 million in Heraklion (up 6.1% year-on-year) and 1.6 million in Chania (up 3.3% year-on-year).

These emerging trends are already leaving a tangible impact on the market. Developers are adapting to new conditions, with residential projects increasingly designed to meet contemporary needs. Property owners are also adjusting their financial expectations, recognizing the added value of their assets. What remains to be seen is whether this new reality will persist over the long term or prove to be a temporary phenomenon.