During the second half of 2023 prices in the residential market relative to the first half were relatively stable after a period of continuous increase in rents and sales. The Greek real estate market has attracted considerable attention from foreign investors, one of the factors contributing to this is the Golden Visa program.
According to the "Danos Group Property Market Overviews for the 2nd Semester of 2023", average house sale prices in the Crete has been stabilising.
Cretan residential market
The average house sale prices in Chania and Heraklion in the second half of 2023 remained steady compared to the first half of the year, according to real estate market data, while the two bigger cities leading the market with the higher average prices.
There was observed
an increased demand for the acquisition of residential properties as an
investment and of holiday houses close to the beach from people all around
Europe and the rest of world such us USA, Australia etc.
Moreover huge boost on the demand
came from the mortgage loan for young people through "My Home"
government’s program, which includes a lower interest rate than a common
mortgage loan with a 75% of the loan to be financed interest-free by the State
on a maximum funding of 200.000 €.
Increased construction cost has
resulted in a stabilizing number of new building permits relative to the
post-Covid-19 era, while the supply continues to be unable to meet the demand
for properties for sale or lease. This fact has kept prices at high levels both
in residential sales and in long-term leases.
On the other hand the still
increased mortgage interest rates across Europe are having an affect on
residential property market. Furthermore the combination of inflation rate and
mortgage interest rates is affecting the demand for new mortgages and long term
debt cost, with the result of reducing the purchasing ability of private users
and investors.
In the following graphs we observe the range of the residential prices in the most sought areas of the two largest urban centers of Crete, Heraklion and Chania.
Particularly in some of the most popular areas in Heraklion property values vary from 2,000-4,900 € per sqm with average prices being around 3,450 € per sqm. In Chania city areas property values vary from 2,000-5,500 € per sqm with the highest prices referring to new buildings and average prices being around 3,750 € per sqm.
