From The Daily Telegraph

This article appeared recently in the Daily Telegraph, one of the UK’s most influential newspapers. It begins by talking about the influx of Greek buyers for prime London property, but then goes on to discuss the property market in Greece. Its opinions are much the same as ours, although when the writer mentions that rental yields are unattractive we would disagree – on holiday villas the returns should be seen as reasonable, especially since so many buyers of holiday property are not using it purely as an investment, but factor in the costs of their own family holidays.

If wealthy Greeks are snapping up property in London like there was no tomorrow, it might seem rather perverse, on the face of it, that British property-hunters should be training their eyes on Greece, scouring the Aegean for bargains. But in the whirligig of the world property market, one door often opens when another closes.

Greece may not be a blue-chip investment financially, but it remains reliable in other ways. However dark the clouds gathering over the eurozone, for lovers of the eternal trinity of sun, sea and sand, the Greek islands have an imperishable charm. High-end buyers may be hesitant about investing, given all the economic uncertainties, but those on smaller budgets are not being so diffident.

“We have certainly seen an upsurge in bargain-hunters interested in resale properties,” says Spyros Mantzos, owner of the Kent-based estate agent A Property in Greece. “If the market in investment properties is stagnant, holiday homes and retirement homes are more popular than ever.”

The cost of living in Greece is substantially lower than in Britain, there are more and more low-cost flights to the country. If you cannot find an island to suit you, it is probably because you have not looked hard enough. There are islands for everyone, from party animals to nature-lovers to people who just want to sit and watch the sunset with a glass of ouzo.

Property prices generally in Greece are falling. House prices in Athens fell by 6.71 per cent in the 12 months to June 2011, according to Bank of Greece figures. Across the country as a whole, the cost of apartments fell by 4.45 per cent over the same period. But the picture is not uniformly grim.

The fall in property prices in the islands has been significantly less than in Athens and other mainland cities – only one per cent in the last year. A whitewashed villa in Mykonos, with views of the Aegean, is not about to rocket in price, but neither will it plummet. The market in holiday properties is reasonably buoyant, certainly compared with other sectors of the Greek economy.

For investors, rental yields on apartments are unattractive – around 2.8 per cent in Athens and 3.5 per cent in Crete, according to the Global Property Guide.

Investors also need to factor in the fact that, because of austerity measures introduced by the Greek government, new taxes are being levied on high-end properties, of the type traditionally beloved of yacht-owning millionaires. But for those willing to take the long-term view, there are far worse European countries in which to buy property.

Central Athens may be risky in the present economic climate but, in ever-popular Crete, you can get two-bedroom villas for not much more than £100,000. Other islands where you can get value for money include Rhodes, Kefalonia, and Corfu.
The economic crisis will pass. The glory that is Greece is eternal.
Diana