The comparison between the Greek vacation home market and some of the key European markets of property buyers—such as Germany, the Netherlands, and Belgium—remains positive.
According to an analysis by Elxis – At Home in Greece, which specializes in property transactions and vacation home management in Greece, the decline in interest rates within the Eurozone has led to a recovery in property prices, following a drop in 2023.
Property Prices and Demand Trends According to Eurostat data, in 2023, home sale prices in the Eurozone dropped by 1.2%. In Germany, prices fell by 8.5%, while in the Netherlands, they decreased by 1.9%. However, Belgium saw an increase of 2.3%. Starting in 2024, especially in the second and third quarters, property prices in the Eurozone began to rise again (+1.9% and +1.4%, respectively). This shift occurred as borrowing rates began to ease, household incomes strengthened, and the demand for new housing loans increased by 4%, according to ECB data—though still about 30% lower than the levels seen in 2022.
Elxis, based in Utrecht, the Netherlands, highlights that in a recent analysis by ING on the European housing market, these factors are expected to continue having a positive effect on prices, not only because of the ongoing relaxation of monetary policy throughout 2025, but also due to structural imbalances in many European property markets. Specifically, in the Netherlands and Germany, the supply of new homes continues to lag dramatically behind demand, pushing prices upward. According to related data, in Germany, new housing permits in 2023 fell to their lowest level since 2010, and projections for 2024 predict a further decrease of 45%.
Greek Vacation Homes: The Alternative for European Buyers According to the CEO of Elxis, Mr. Giorgos Gavriilidis, “The return to an upward trend in housing prices in the markets of Northwestern Europe will benefit the Greek vacation home market. Despite the price increases of vacation properties by an average annual rate of 8% to 10% over the past 4-5 years, the comparison with foreign markets remains very favorable. For example, in the Netherlands, €500,000 is needed to buy a modern home. In Munich, Germany, a single-family home is priced at €1.5 million. Meanwhile, in Crete, a newly built villa with a pool and two bedrooms costs €280,000, or €360,000 if it has three bedrooms.”
Mr. Gavriilidis adds, “With that amount, in the Netherlands, you could buy a container or plastic house in a park, without even owning the land, which is rented from the local municipality.”
Tax Advantages and Investment Potential In addition to the price advantage, Greece offers a surprisingly more favorable tax framework, at least for Europeans interested in buying a vacation home. “While in the Netherlands, the transfer tax for a primary residence is 2%, for a secondary/vacation home, it jumps to 10.4%, while in Greece, it does not exceed 3%,” notes Mr. Gavriilidis.
Another important factor is the potential for future capital gains, which Greece continues to offer. “We have a recent example of clients who bought a house in the Preveza area four years ago for €360,000. Today, they are selling it for €650,000. Such examples are common and work positively to attract new buyers,” concludes Mr. Gavriilidis.
Source: MoneyReview