According to data from Elxis – At Home in Greece, the market for newly built holiday homes in Greece is one of the most attractive options, offering both prospects for future capital gains and significant revenue from short-term rentals.
Increase in Prices of Holiday Homes
Indicatively, in the last 12 months, the purchase price of a newly built 80 m² holiday home in Rethymno, Crete, with three bedrooms and a private pool, amounted to €327,000, an increase of 16.7% compared to 2023 (€280,000) and 23.3% compared to 2022 (€265,000). “If the owner chooses to rent it out, the potential profit could be even higher,” stated Mr. Giorgos Gavrielidis, CEO of Elxis – At Home in Greece.
Rental Income
According to the company’s analysis:
For a 50–80 m² property, furnished with a pool and terrace: ➤ Rent: €80–140 per bedroom per night
For larger properties (120–150 m²): ➤ Rent: €180–240 per bedroom per night
Rental income is influenced by factors such as the view, distance from the sea, the property's age, the presence of a garden or pool, and proximity to airports or tourist attractions.
Management – Costs and Returns
The final return depends on operational expenses. Partnering with a property management company entails a commission of 10%–30%, which may include cleaning services, maintenance, guest reception and support, as well as the ability to monitor bookings and revenue online via cloud-based services. However, this is a solution chosen by most foreign owners, as it offers significant profits without requiring any involvement from the owners.
Example of Return
Purchase in 2019: 145 m² property with 3 bedrooms & a pool
Final cost: €515,000 (€450,000 purchase + €65,000 transfer/fixtures)
Net rental profit: €80,000 (2021-2024)
Property capital gain by the end of 2024: €182,889
Total profit in the event of sale: €262,979
Particularly significant is purchasing from plans, as it guarantees immediate capital gains upon the completion of construction.
International Investor Interest
According to Mr. Gavrielidis, buyers from the Netherlands and Belgium are showing strong interest, viewing the properties primarily as investment vehicles. Around 50% of buyers opt for rental during periods they are not using the property, while some – particularly from the Netherlands – proceed to resell within two years, generating substantial profit. Increasing participation is also observed from German and French buyers, although they tend to use the properties primarily for personal vacations. Crete, with its sunny weather from April to October, stands out as a top destination for holiday home investments. All indications suggest that the investment potential of holiday homes will continue to be an emerging trend in the coming years.
