Greek Property Prices on the increase

Property prices are on the rise due to the increasing tourism numbers and this has been steadily on the rise despite the fires in 2007. In fact, 2007 was a record-breaker with 17 million people visiting and revenues topping one billion Euros every month.

Olive Tree has been watching this trend for almost three years and selected a development just outside the pretty village of Makriaglos in southern Crete to called ‘Lagada Ridge’. The development of large villas with their own pools, on one acre plots was quickly sold out, with buyers keen to make a capital gain, but also take advantage of the tremendous rental opportunity in the area.

Next Olive Tree exclusively promoted ‘Grapevines’; 22 townhouses around a swimming pool and close to the beach, again in the village of Makriaglos. These too sold out quickly. The development has now been completed, with the first clients moving in during March 2008.

Richard Brady Managing Director of the company said “Crete is a lovely island with excellent weather all year around, as it is the most southerly of the Greek islands. Investors are keen to get involved in south east Crete, due to the development of Sitia airport, making the whole area significantly more accessible. Rental yields are currently excellent due to relatively low property prices and high demand for quality holiday accommodation.

We see the trend developing as the Greek authorities promote the region and continue to incentivise developers, with such things as grants to develop golf courses and other tourist attractions”.

Property prices have also been boosted by improvements in infrastructure, a healthy economy and flourishing tourism. And more improvements are on the way thanks to £20billion from European Union structural funds lasting to 2013.

Darran Phillips of Olive Tree says, “All this comes on top of the improvements for the 2004 Olympics. It’s no wonder that Greece was tipped as the sixth best place for foreign property buyers by A Place In The Sun magazine.”

An analysis of the Greek economy published by the IOBE Foundation for Economic and Industrial Research in July reported that the Greek economy will expand faster than projected, at a rate of over 4%, thus completing 14 years of uninterrupted growth.

UK property buyers account for a massive 80% of Greek overseas property sales and this has been helped by cheap flights, including autumn deals from British Airways starting at £59 one-way.

Olive Tree International announced their latest find in Makriaglos – ‘Bay View’. This is a combination of apartments and bungalows close to the village and the beach, with swimming pools and an on site management service. Prices start from €99,000 (£67,000) with a total of 140 units due to be built over the next 3 years. Olive Tree have already sold phase one and 50% of phase two.