When it comes to real estate, Greece is one of the best countries to invest in currently, and the reason is simple and rather well known: the country has been engulfed by a very serious financial crisis for about a decade now. This crisis resulted in a rather steep drop in prices in many properties, including some very luxurious ones. To put things into perspective, in some of the most expensive parts of Athens and other major cities prices have gone by as much as 50%. Since the country is currently turning a corner and leaving the crisis behind, if one’s interested in investing, there is no time like today and now.
One of the areas in Greece that has been most severely affected by the crisis is the island of Mykonos. That’s not to say that properties there have become hard to sell or buy – as is usually the case during times of crisis because no one wants to sell their property for less than what they paid for – in fact, the opposite is true. Real estate in Mykonos has always been ridiculously expensive because of the island’s popularity with local and international jet setters, the crisis however has made land there up to 40% cheaper.
The prices drop, but the tourists keep coming
Real estate prices seem to be the only prices affected by the crisis on the island of Mykonos. The island is still home to some of the most exclusive and expensive clubs in the world – it’s not unusual to be asked to buy a few thousand Euro for a bottle of champagne – and many famous restaurants are still maintaining branches and off-shoots on it. What this means is that although the “quantity” of visitors to Mykonos might have diminished during the crisis since the Greeks simply couldn’t afford it, but the “quality” of the visitors has remained the same or even increased. Mykonos is still and will probably always be one of the most popular summer destinations for the rich and the famous.
What do investors do with Mykonos real estate?
Luxury housing seems to be the name of the game on Mykonos with old villas being remodeled and renovated while new ones are also built every year. This is because it is extremely easy to sell a villa on the island, which is why many people or companies choose to remodel and flip older villas or build new ones from scratch.
There are of course a lot of investors that choose not to sell or flip the properties they buy. Instead, they choose to rent them out to the many tourists that visit the island each year, thus turning them into long term investments that actually produce a steady stream of profit.
How are things now on the real estate market?
Real estate prices were dropping year by year until a couple of years ago. The current political situation in Greece is way more stable than it was a few years ago and the Greek economy seems to start rebounding from the crisis. This has resulted in a halt in price drops. This doesn’t mean that you lost the investment train though. Mykonos villas and other properties were pretty overpriced before the crisis because the Greek nouveau-riche could get enormous loans pretty easily. The crisis just “corrected” the market. In other words, property prices will probably not get any cheaper soon, but they will probably never again be as high as they were before the crisis engulfed Greece.
The more things are getting better in Greece the more the prices will keep climbing, even if that climb is incremental. If you want to buy luxurious Mykonos villas or other real estate, you should hurry.