The Greek real estate market is experiencing impressive growth in the vacation homes sector, with demand from international buyers breaking all previous records. Investors from Western Europe and the US are turning their attention en masse to Greek islands and coastal areas, seeking quality vacation homes that combine personal use with investment prospects.
Which countries are driving vacation home demand
According to research by Elxis – At Home in Greece, a company specializing in promoting Greek properties internationally, the most dynamic buyers come from specific markets. Leading the charge are investors from Germany, Netherlands and Belgium, while significant presence is also shown by buyers from the US, United Kingdom, France, Switzerland and Austria. The company’s Dutch headquarters in Utrecht provides strategic access to Northern European markets, where interest in Greek vacation homes is growing exponentially.
Preferences and budgets of international buyers
Most investors, as reported by Kathimerini newspaper citing the Elxis – At Home in Greece research, are seeking vacation homes in the range of €250,000 to €600,000, with the highest concentration between €350,000 and €450,000. Preferences focus on:
- New constructions with two or three bedrooms
- Private pool and garden of at least 500 square meters
- Prime location with sea views or beach access
- Modern amenities and high construction quality
A typical vacation home meeting these specifications costs approximately €400,000, with variations depending on the area and particular location characteristics.
Impressive growth rates by country
Statistics reveal explosive growth in vacation home purchases from specific countries. Belgian investors show a 103% increase, Dutch buyers 91%, while German purchasers increased by 64% compared to the previous year. Northern European investors mainly choose Crete, Ionian Islands, Peloponnese and Rhodes for their vacation homes. In contrast, American buyers turn more toward Cyclades, Crete and Athenian Riviera, seeking vacation homes with greater investment returns.
Investment orientation and income utilization
A significant percentage of international buyers, particularly from Netherlands, Belgium, US and United Kingdom, adopt an investment strategy for their vacation homes. They wish to combine personal use for holidays with income exploitation during the year. “About 50% of buyers from these countries have an investment orientation and choose to exploit their vacation homes for the period they don’t use them,” explains Giorgos Gavriilidis, managing director of Elxis, to Kathimerini newspaper.
Economic footprint and investment returns
Total vacation home usage is calculated at seven months annually, with rental covering mainly 12 weeks during summer months. According to Elxis analysis, the total benefit from use, maintenance and investment exploitation reaches €65,150 annually.
Factoring in the purchase cost of €400,000 and additional expenses of €40,000 (transfer tax, notarial fees, legal costs), a vacation home can contribute over €1.09 million over a ten-year horizon.
Positive impacts on local economy
Vacation homes create significant multiplier effects on the local economy, regardless of destination. From construction start to long-term operation, dozens of professions and activities benefit directly and indirectly. “A vacation home has tremendous impact on the local community, beyond the state’s tax revenues,” emphasizes Mr. Gavriilidis. Builders, contractors, technicians, restaurateurs, producers, retail trade, fuel, maintenance, cleaning, car rentals, tourist activities and legal services are some of the sectors that benefit from vacation home development in Greece.
