Homes in Crete to gain from newbie ‘hotspot’ status

Holiday makers and second homers have long enjoyed a deep and abiding love affair with the Greek islands but analysts are now suggesting that Greece, particularly the island of Crete, could be the next property hotspot in Europe, snatching the baton from the dwindling Spanish market as overseas property buyers start to eye up homes in Crete. One of Greece’s largest islands, Crete has proved its worth as a popular alternative to Spanish Costas and offers the purchaser a diverse range of property options, ranging from tourist-driven resort accommodation to rural idylls in the middle of nowhere. The birthplace of Nana Mouskouri, the Olympic Games and European civilisation itself, the island’s year-round sunshine, 93 Blue Flag beaches and dramatic coastline, have enticed investors, who have flocked to its shores, eager to follow the tried and tested route of buying a home in a location you love. 16 million tourists visit Greece and its islands each year, 3 million of those heading to Crete, some of whom, will naturally love island living enough to search for second homes in Crete. With buyers benefiting from a smooth purchase process and the security of freehold ownership unattached from expiry dates (which means that the investment can be passed on to descendants), the Creten property market has seen strong capital growth of 15 per cent year on year since 2000. Homes on Crete range from boutique Cretan developments which tend to be small and discreet, constructed sympathetically in keeping with the local surroundings and hold special appeal as new developments in Crete are restricted by both height and size guidelines.

A recent survey by Piraeus Bank (UK) asked 308 people planning to buy within south east Europe within the next two years where they would prefer to buy. Nearly 20% of respondents said Greece followed closely by Cyprus, then Bulgaria, Egypt and Romania.

Whilst the majority of respondents were looking for holiday homes, other major deciding factors included overall lifestyle options, a warm climate and lower cost of living. The findings confirm established trends which suggest that the majority of minor or first-time investors are keen to stick to the sensible property investment route: enjoy the property for holidays, and benefit from both steady capital appreciation and potential rental income which can be used to offset the cost of the mortgage back home.

According to latest Global Money Movers League Table from Currencies Direct, Greece has leaped into the top 10 destinations for Britons wishing to invest in overseas property. Nowhere is this more prevalent than on the island of Crete. With homes on Crete typically costing 30 to 40 per cent less than in the UK, a stable economy and comparatively high standard of living, Greece and Crete are enjoying the re-emergence of the country’s popularity as a whole and are ready and waiting, eager to take advantage of the current instability affecting more traditional markets in the Mediterranean region. Home buyers in Crete look set to enjoy rosy returns.