Market Information Rhodes – Symi 2015 Aegean Greece Market Information Foreword
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Market information Rhodes – Symi 2015 Aegean Greece Market information Foreword Dear Readers, marketing, Engel & Völkers was able to further expand It was certainly no coincidence that in Greek mythol- its market position in a difficult market environment. ogy the sun god Helios chose Rhodes as his island. At the same time, the financial crisis had a lesser effect There’s simply no other place like Rhodes. Mediter- on prices in Rhodes’ luxury and upscale second home ranean and modern. Cosmopolitan and traditional. And market than expected, and even discussions about always wonderfully calm. Greece as recently as in spring 2015 put only few Boasting more than 3,000 hours of sunshine a year, inves tors off choosing this beautiful island. Rhodes is in fact one of the sunniest regions in Europe. Holidaymakers from Europe and all over the world are In addition to the region, property type, size, ameni- attracted to Rhodes’ Mediterranean way of life and the ties, view, location, etc., the price naturally plays a island’s diversity. decisive role when choosing a property. This market For several years now, premium tourism has become report focuses on the middle and upper price segments increasingly popular on the island – as evidenced by of the property market. Its first and foremost purpose the many newly opened 5-star hotels, the construction is to guide property buyers or sellers and to contrib- of the new marina, and the endeavour of the tourism ute to greater market transparency. On the following associations to make Rhodes a year-round destina- pages we will take a look at current prices, trends and tion. A Greek-German project for care-dependent indi- developments. If your principle as a buyer is “location, viduals is already in the pilot phase and is intended to loca tion, location”, Rhodes will not only have attrac- revive winter tourism on the island in particular. tive investment opportunities in store for you, but also Although the Greek economy experienced a deep reces- your very own dream property. sion in recent years, the Rhodes real estate market is Please contact us to arrange a professional and reliable stabilising. Owing to its unique portfolio and excellent consultation and viewings. 24 Rhodes and Greece General market situation A differentiated approach is necessary to understand is definitely the right time to invest. The international the property market on Rhodes and in the rest of press is also reporting on promising opportunities in Greece, especially the coastal regions and the various Rhodes’ luxury property market. islands. Accurate market analyses are only possible The window of opportunity may close faster than you when the market is subdivided into segments, regions might think in Greek’s most sought-after destinations and locations. such as Rhodes. Some sellers are still open to offers, Publications from various institutions are often too although price negotiations are generally much easier gene ral and cover the entire Greek property market, or just before a price increase compared to just after. Yet, they are limited to one single financial institution’s com- for the first time in 24 months, brokers need to actively pany data and research. Both approaches distort reality seek out premium properties on Rhodes, meaning that significantly and lead to inaccurate market analyses. available upscale properties are becoming increasingly scarce. In order to map the market as realistically as possib- You’ll often hear real estate professionals use a very le, we have divided the residential property market in popular expression, namely: location, location, loca- Greece – and in particular this market report dealing tion! These three words are the most important factors with the island of Rhodes/South Aegean – into the fol- that determine the value of a property. You can change lowing two segments: the floor plan, renovate the interior and redesign the grounds, but it is impossible to move the property to a Primaryresidences different location. When buying a property, it is there- This segment is primarily dominated by locals fore very important to not only find a suitable home and has experienced a substantial decline in prices, for yourself or as an investment, but to also factor especially in the cities on the mainland. in the location, which should be desirable. This will Luxuryandupscalemarketforholiday/secondary ensure that your property remains attractive, today homes and in the future. This market segment is primarily dominated by EU citizens of non-Greek nationality and by wealthy A sought-after location does not necessarily mean citizens of Greek nationality, and has experienced the property has to be centrally located. Other factors only a slight decline in prices since the crisis began. such as peace, privacy, uniqueness, beautiful surroun- dings, a picturesque area or stunning views play just The market for luxury and holiday homes must be ana- as big a role. lysed separately from the Greek housing market. The high level of unemployment and low lending volume of the banks associated with the economic, financial and bank crisis has led to declining prices for typical first homes in particular. Many owners of holiday or luxury homes – usually wealthy foreigners or Greeks living abroad – have acquired their property without or with only little borrowed capital and are thus under little pressure to sell. What’s more, the economy in their home countries is mostly thriving. The result is a natural price stability in the market for luxury and upscale holiday homes. According to forecasts for 2015, property prices in the Rhodes property market are set to remain stable fol- The range of purchasing criteria to be taken into con- lowing some interesting price reductions. Against the sideration is broad; therefore please contact the mar- backdrop of rising sales activities in the markets in ket leader on Rhodes – Engel & Völkers – for the best Germany, the UK and Central Europe in general, now advice and service on the island. 25 Market information Rhodes – Aegean 2015 Market development Let’s also not forget that this is an island where high- The past years were marked significantly by the euro end properties in good and prime locations are natu- crisis, causing the real estate market in Rhodes to fluc- rally scarcer than elsewhere. tuate. This period was characterised by the general economic and political uncertainty in Greece. The marketing period is dependent on location and price expectations of the owners and is on average Last year, Engel & Völkers witnessed a contin- about 6–12 months, in some cases even 18 months. ued increase in enquiries for properties on Rhodes, Properties in prime locations at prices in line with primarily from Germany, Austria and Switzerland, the market are often sold much more quickly. A more but also from the UK, other Central European coun- detailed consideration of the market will quickly show tries and various non-EU countries. According to that the main types of properties offered on the market Engel & Völkers, this increase in demand is down are villas and houses. to the general uncertainty surrounding the euro and the lowest interest rates on record. Uncertainty about At the start of the crisis, some planned and approved the future of the Euro pean single currency and the new construction projects were halted, which prevented desire of many people to invest in quality of life and a massive surplus. As a result, the prices did not fall as stable physical assets gave the real estate market in significantly as in other parts of Greece. Accord ing to Rhodes a real boost. This was confirmed in the sec- the National Bank of Greece, for example, the number ond half of 2014. Calling the new elections in Greece of planning permissions has fallen sharply since 2008 for early 2015 initially led to a noticeable decline in and, in 2013, has reached its lowest point since 2007 enquiries, which then stabilised at the start of the cur- with a decline of almost 70 % (Greece overall). Last rent season. In the meantime, the number of enquiries year, more building permits were issued again and mit- has increased significantly again. igated the sharp decline from previous years. Overall, prices on Rhodes and in Greece in gen eral fell At the same time, according to the National Bank of only slightly last year compared to the previous years, Greece, real estate transactions in Greece experienced depending on the location. In 2014, almost all contracts a roughly 60 % decline compared to 2008. According were concluded on this slightly reduced price level. to our estimates, the low point was reached in 2014 Interestingly, significantly more sales came about in with a decrease of 48.7 % compared to 2011. During Rhodes’ high-end segment than in previous years. The the course of 2014, this decline lost some of its inten- reason for this development is the demand for luxury sity, which is confirmed by the increased demand and properties and simultaneous lack of new construc- the increasing number of deals concluded. tion projects, in particular in the Lindos region and the southern part of the island. The end of the current The record number of visitors last year, coupled with discussions in the euro region should also boost confi- the price declines, seem to have revived the property dence and thus lead to a further increase in enquiries. market, as many holidaymakers are so excited about The past year was a record year in tourism – another the island that they want to purchase a holiday home indication of the continuing significant recovery of the in the region. With the announcement of an increased market. number of flights servicing Rhodes in 2015, this trend Engel & Völkers continues to record a sales growth of appears to continue.