The high demand for new low-energy homes from foreign buyers has significantly increased investment interest in the real estate market. This trend is now reflected in the numbers, as in 2024, construction activity in the housing market saw a substantial increase, according to data from ELSTAT.
Based on a relevant analysis by Elxis – At Home in Greece, a company specializing in selling vacation homes to foreign buyers, a significant increase has already been observed in the 11 months of 2024 compared to the whole of 2023, and even more so compared to 2022.
Specifically, according to ELSTAT, from January to November 2024, building permits were issued for 3,503 residential units. This number represents an increase of 17.8% compared to 2023 (2,972 units) and 45.8% compared to 2022 (2,401 units). The largest increase is recorded in Chania, where building permits for residential properties rose by 46.5% compared to 2023 and 61.8% compared to 2022.
These figures confirm the significant rise in investments for the construction of new vacation homes, as the demand far exceeds the supply. "In the development of vacation homes in Crete, we encounter all categories of builders, from local companies to nationwide groups, and from domestic real estate development companies to investment funds. The interest is high, as supply lags behind demand, and prices have been steadily rising over the past few years, with an average annual rate of 8%-10%," says Mr. Giorgos Gavriilidis, CEO of Elxis – At Home in Greece.
According to Elxis – At Home in Greece, new residential projects are being developed in Chania in areas like Tsivaras (Apokoronas), Marathi (Akrotiri), with single-family homes selling for over €4,000/m². In Kasteli, luxury apartments with sea views are being built, priced at €7,000/m². Additionally, in Maleme, 100 meters from the beach, new vacation homes are selling for €5,500/m², and in Kokkino Chorio, newly built villas with excellent views are priced at €6,100/m².
Significant investments in new vacation homes are also taking place in Rethymno. On the northern side of the county, in Dramia, near Georgioupoli, single-family homes with pools are being developed, priced around €4,100/m². Similarly, in Kyriana, vacation homes are selling for €4,300/m², while in the city of Rethymno, apartments with sea views are priced at €4,500/m². Further south, in Plakias, new constructions are priced at €5,000/m², and in Assomatos, the price is €4,000/m².
As Mr. Gavriilidis explains, to successfully target foreign buyers, companies need the right "tools." "Elxis – At Home in Greece offers the necessary guidance to ensure that buyers are managed properly and maintained in continuous communication during the construction phase. It is important to provide regular updates on the progress of the work, adhere to delivery deadlines, and resolve any technical issues that may arise after the property is handed over," says the head of Elxis – At Home in Greece.
