Greek Island of Rhodes Making Luxury Market Comeback
The luxury real estate market on Rhodes is starting to stabilize now that Greece's future in the Euro seems secure, reports international real estate consultancy Engel & Völkers.
Engel & Völkers reports that inquiries for high-end residential property increased by approximately 20 percent.
Georg Petras, partner at Engel & Völkers on Rhodes says, "The financial crisis has had a weaker impact on the price structure of the luxury second home market on Rhodes than on the market for first homes. Luxury holiday residences did drop in value slightly during the crisis. But prices are now on the rise again, thanks to the high demand. From this point of view, now really is the best time to invest in Greek real estate".
Demand is directed at exclusive villas and homes, particularly those close to the coast with direct sea access or exceptional views. Properties with three or more bedrooms, exclusive fittings and substantial land plots are attracting the greatest interest. Buyers of top-end homes in a prime location on Rhodes are procuring a stable asset investment with potential for appreciation in value, in addition to an investment in quality of life, security and retirement provision. Prices for luxury real estate on Rhodes set to increase
The trend towards rising prices for luxury properties on Rhodes is already manifesting itself on the island's east coast: Compared to the previous year, Engel & Völkers registered a rise in top prices of 500 euros per square meter to 3,000 euros per square meter for properties with sea views. In the south of Rhodes, prices range from 1,000 euros per square meter for traditional houses to 4,000 euros per square meter for villas with park-like land plots. In the island's prime real estate hotspot Lindos, prices start at 2,500 euros per square meter and are reaching top prices per square meter in excess of 6,000 euros. The center and suburbs of the town of Rhodes are particularly popular with first homebuyers. Prices for existing properties at central addresses range here from 1,600 to 3,500 euros per square meter. Wealthy foreigners and growing tourist numbers resulting in price stability
The market for luxury and upmarket second homes must be analyzed as a separate entity to the Greek housing market as a whole. In the majority of cases, the owners of holiday homes and luxury residences are wealthy foreigners or Greek expats.
They usually acquired their property with little or no borrowed capital and are therefore under no pressure to sell in most instances. This fosters a natural stabilizing out of prices. The greatest number of enquiries for second homes on Rhodes comes from Germany, Austria and Switzerland. There are also interested parties based in the UK, other central European countries and non-EU nations.
Additional impetus has also come from the island's flourishing tourism industry. A further increase in 2015 is anticipated as well, buoyed by the announcement of even more flight connections.