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Buying homes in the Cyclades is not for everyone

Featured Buying homes in the Cyclades is not for everyone

Neither the pandemic nor the war nor the energy crisis nor inflation managed to thwart the market for luxury holiday homes in the Cyclades with demand, prices and returns having become exorbitant.

At the same time, Mykonos, Santorini and Paros have now created a new, extremely expensive category, which is completely different from the rest of the Aegean islands, but also from the islands of the Ionian.

The difference recorded in the median asking prices between luxury and standard homes has soared, while there is a further rise for already outrageously priced villas, which for Mykonos reaches 17% compared to 2019, the last year of normality.

Paros, the new Santorini

Based on the data from the study for the market of vacation homes by Geoaxis certified real estate appraisers in Mykonos, asking prices of single-family houses were recorded of up to 26,700 euros per sq.m. from 22,800 euros per sq.m. in 2019, while in Santorini the corresponding prices reach 17,000 euros per sq.m.

The impressive thing is that in terms of the highest asking prices, Paros surpassed Santorini, reaching 17,500 euros per sq.m. from 11,600 euros per sq.m. in 2019.

Thus, in Mykonos a luxury residence can cost up to 5.4 times more than a typical Greek summer residence, in Santorini 5.5 times, in Paros 3.9 times, in Serifos 2.3 times and in Kea 2.8 times.

Niche market for the really well-heeled

The luxury housing market is estimated to have a share of approximately 10% – 15% of the total pie and is mainly aimed at buyers outside Greece who, looking for special properties, are willing to pay significant amounts.

It is a fact, moreover, that the possibilities of buying and renting an average residence by workers or civil servants have shrunk.

The majority of buyers in Mykonos and Santorini come from abroad, while a very small part concerns the acquisition of a golden visa.

After all, the inability to access cheap bank financing and the increase in taxation, combined with the shrinking of disposable income and the uncertainty about the immediate future, continue to classify the acquisition of such holiday properties as an option not for the majority of Greeks.

Construction is increasing

It is also characteristic that the first signs of new developments that appeared in the 2017-2018 period in the South Aegean region have intensified this year as well.

Specifically, there is clearly more construction activity with a 56.7% increase in volume in the period April 2021 – March 2022 compared to the period April 2020 – March 2021, according to the data of the Hellenic Statistical Authority.

Three speeds

According to the Price Observatory of Geoaxis, in median prices, Mykonos, as expected, holds the lead, at 12,967 euros per square meter, while Santorini follows with 10,800 euros/sq.m. and Paros with 7,778 euros/sq.m.

In Kea the median price of a luxury residence reaches 5,309 euros and in Serifos 3,262 euros per square meter.

Compared to last year, the biggest increase, of 7.3% in price, occurs in Kea (from 4,947 to 5,309 euros/sq.m.).

Luxury homes in Mykonos are 3.8% more expensive this year, in Santorini 4%, in Paros 3.9% and in Serifos 2.5%.

Even the prices of standard holiday homes on these five islands have increased by an average of 2.6% compared to 2021. More specifically, Santorini (5.5%) shows the biggest increase, followed by Paros (2.6%), Kea (2.2%), Mykonos (1.9%) and Serifos (0.9%).

Mykonos is also at the top of this list, as it records the highest price of 2,419 euros per square meter, above Paros (1,985 euros/sq.m.), Santorini (1,950 euros/sq.m.), Kea ( 1,884 euros/sq.m.) and Serifos (1,432 euros).