So, in the market of Greek real estate, good deals are being concluded for the future. In recent years, the Greek government has abolished or eased many official and unofficial barriers that discouraged foreigners. Of course, the Olympics in Athens also played a role – however, perhaps this fact did not have too much impact on life on the islands, but it attracted international attention to the whole country.
Arguments and facts
The market of real estate in Crete, one of the largest islands in the Mediterranean Sea, which is famous for its mild healing climate, attracts more and more new buyers from Eastern Europe, Scandinavia and the UK, and now some of them They are those who, under other circumstances, would have settled in Spain. Fascinated by the beautiful weather, the relatively low cost of living and delicious home-made products, homeowners tend to spend at least 3-4 months a year here, while many of them consider it a good way to save on everyday expenses.
The cost of housing and food in Crete is kept within reasonable limits for Europe. John Batty, Managing Director of Aegean Blue, says: "The holiday home is estimated at 200,000-300,000 euros. And, given the large amount of local fruits, vegetables, oil, wine and meat, most products are still inexpensive."
The expert notes that some residential buildings with an area of less than 150 square meters. m is tax-free, and the fee for water, electricity and heating is about 900 euros per year.
Experts give such positive assessments to Crete even though the cost of living in Greece increased by 4.9% over the year, while economic growth in 2008 is likely to be only about 3%. Over the past year, the main food products – bread and pasta – have risen in price by 18% and 26%, and, according to Greek Prime Minister Kostas Karamanlis, the reason for this is the state of the global economy.
Pool, beach, history
According to Robert Key, director of the Greek branch of Gluttons, we can safely count on the prospects for an increase in the cost of housing in Crete. The expert explains: "The Greek market has avoided a deep crisis, since the issuance of building permits is strictly controlled (construction is prohibited closer than 50 m from the sea), so the problem of huge randomly erected settlements, which many Spanish villages have turned into, will not affect Greece."
However, the unfavorable economic climate certainly limits price growth, and in the near future it will not exceed 5%, Batty continues. "Apparently, houses to the west of the city of Chania and on the shore of the Bay of the same name will become more expensive the fastest, especially in the area of the city of Apokoronas, where the best price growth has been observed in recent years."
The city of Chania is located in the north-west of Crete and has long held the palm as a favorite place for investors due to its location on the seashore and the old town, which mixes its Byzantine, Venetian, Turkish and Greek history. The city is quite well preserved, despite the bombing of the German army during World War II. To this day, work is underway to restore the ancient streets and city walls, and in parallel, the port in the eastern part of the island is being modernized: dilapidated docks are turning into a modern stylish marina.
One of the projects that you should pay attention to here is led by Leptos Estates. The creation of the Canea Corniche complex involves the reconstruction of the building that housed the island's first olive oil production plant, built by a French chemist in the 1880s. In this area, just a few minutes from the old Venetian port and the city center, there is no excess of offers, so the 200 apartments of the complex, all with sea views, should be a success. The project retains elements of the original construction, for example, two factory pipes and several furnaces, which, like some other historical objects, will become part of the exposition of a small museum dedicated to the history of the factory. Olive trees and landscaped gardens will be planted around the building. Construction work is scheduled to begin this fall.
The same company also offers a more traditional project Aphrodite Villas, a village of country houses, designed for 64 residences – villas and apartments, with a communal pool, just a few meters from the beach of Pyrgos Psilonerou and a little west of Chania. Housing prices here start from 175,000 euros for one-bedroom apartments and reach 434,000 euros for a three-bedroom villa.
Further west of Chania, near the town of Maleme, the Cybarco Real Estate Development group has launched a new Maleme Project, which is a complex on the first line of the sea in the town of Platanias. The complex on the beach, 17 km from the city, is designed for 16 two-bedroom apartments and 8 small three-bedroom houses. The residents have communal gardens and a swimming pool, some villas are sold with private pools.
The income from renting a house in this area in high season can amount to 1,500 euros per week.
Nearby, in the town of Castelli, which is the capital of the famous Kissamos province for its wines, Leptos Estates sells several villas. The city is located 40 km from Chania and cannot boast noisy bars and large shops, but the original atmosphere of Crete has been preserved here. The Fournado Villas complex, built in a typical architectural style for the island, has landscaped gardens, a swimming pool and includes one-bedroom apartments from 120,000 euros, two-bedroom townhouses from 170,000 euros and three-bedroom villas and plots from 320,000 euros.
A similar project in Malema, Arternis Gardens, is also offered by Cypraegean Properties: it combines 18 bungalows, townhouses and apartments. There is also a swimming pool, a beach, landscaped gardens and orange trees. Cypraegean Properties guarantees a 5% rental income for two years, prices range from 130,000 to 230,000 euros.
All power to lawyers
As in any country, some buyers expect to purchase housing for reconstruction on the secondary market of Crete (ruins here can still be bought for only 35,000 euros). However, those who are looking for their rural paradise, a cute old Greek house surrounded by olive trees and overlooking the Aegean Sea, can expect unpleasant surprises, as sometimes the selection and purchase of such an object is a very exhausting and long-term occupation.
The reason for this is the complex system of land ownership, when one plot may belong to several people, and not all of them agree to sell the property.
Therefore, if you managed to find your dream home, do not be surprised if you suddenly find that it was inherited by 20 relatives, 15 of whom want to sell it to you, one does not, but the rest disappeared half a century ago on the lands of America or Australia. In addition, after a thorough check, it can be found that the house is so old that it has managed to acquire numerous encumbrances, many of which are not too clearly documented.
However, according to Robert Key, the problem is being solved, as Greece has recently established a land registry. He says: "Today it is possible to buy both secondary and new housing without risk. To protect yourself, it is better to resort to the help of an experienced lawyer and an inspector to check the legal and technical details. All contracts for the purchase and sale of real estate are signed in the presence of two lawyers and a notary public. Then the property is registered in the land registry in the name of the new owner."
On the other hand, in recent years, most of the buyers of real estate in Greece have preferred properties in new complexes, thus avoiding all the difficulties that fell on the shoulders of the developer.
Buying a property in Greece, you are not immune from risks. But these are the same risks that exist in any country in the world. To avoid problems, buyers should ask themselves a few basic questions. Have the ownership rights to the property been registered with the previous owner? Is everything in order with the planning documents and the construction license? Is the purchase and sale agreement drawn up correctly? Does it clearly indicate what exactly you are purchasing and on what terms? What happens if a construction company goes bankrupt?
Traditionally, many investors in foreign real estate are attracted by relatively low loan rates – and Greece is no exception.
Leptos Estates offers interest-free loans for three years when purchasing facilities under construction, with the last installment being made upon completion of work. "Greek banks also have good credit conditions," says Christos Pateras, the company's managing manager. – Loans are offered for 75-80% of the cost of the facility for up to 30-40 years."
British Piraeus Bank UK today offers loans from 6% in the amount of up to 80% of the transaction price, payments are made according to the EURIBOR + 1.75% scheme with a loan term of 5 to 25 years.
RobertKi notes that there are many mortgage offers in Greece with fixed rates from 3.7% and floating rates from 5.25%.
"In order to partially return the invested funds, foreign buyers, of course, need to rent houses," notes Irini Tzortzuglu, head of the bank's department for work with individuals. "After all, Crete, with its long season and mature tourist market, is one of the best places in Europe to earn income from renting a home."