Demand for luxury properties on the Athenian Riviera soared during January-June, found the latest report by Greece Sotheby’s International Realty focused on the Greek luxury homes market.
According to the report, a comprehensive update on the luxury homes market trends in Greece for the first half of 2023, the Athenian Riviera registered a significant surge in demand, outpacing the traditionally sought-after Mykonos, which marked a 17.9 percent decline compared to the first half of 2022.
Corfu remained the top-requested destination, reflecting the island’s enduring allure to luxury property seekers while Athens’ city center advanced to the fourth position, surpassing several renowned island destinations.
“This shift indicates a growing appeal of urban luxury living within the vibrancy of the Greek historical capital,” the report noted.
Countries interested in luxury properties in Greece: US & UK are still on top
Buyers from the United States and the United Kingdom remain the market leaders for properties in Greece, reflecting the long-standing affinity for Greek real estate within these countries. Combined, the two nations account for one-third of total demand. Greek buyers represent the third largest group, indicating a solid domestic market for luxury properties. French buyers closely trail the Greeks, followed by buyers from Germany, Israel, Australia, Canada, Switzerland and Belgium.
Buyers have become selective
“Regarding the Greek market, the data shows that we are in a period of selective buyers,” said Savvas Savvaidis, president and CEO of Greece Sotheby’s International Realty.
In particular, during the period under review, demand requests (leads) increased in the the first half of 2023. However, on-site real estate viewings slightly dropped to 12.2 percent compared to 13 percent in the first six months of 2022. The report points out that this is mainly attributed to the fact that “the pandemic accelerated sales”. According to the report, in 2023, it is more evident than ever that the pandemic impacted significantly the decision patterns and rationale of high-net-worth individuals (HNWI) during the years 2020-2022.
“Decisions regarding future investments were brought forward and transactions that would otherwise be conducted in 2023 – 2025 took place way earlier,” the report highlighted.
Meanwhile, the report said that “window shopping” remains at a rate higher than average, suggesting potential market volatility.
Moreover, supply, particularly for unique homes, lags behind demand, a discrepancy most noticeable in the beachfront properties category.
At the same time, sellers’ high expectations have kept asking prices elevated, despite changes in the market context driven by interest rate hikes.
“Market forces, we expect, will eventually moderate these demands,” Savvaidis said.
Current and future interest for luxury properties in Greece
Regarding the current interest of high-net-worth individuals in luxury real estate, a static market state was recorded in Greece (as well as Italy, Egypt, Cyprus and Croatia) with no discernible change in the interest of buyers. According to the report, this could suggest a period of market stabilisation after the upward trend of the pandemic years.
Turning the attention to the future interest of buyers in luxury properties, Greece is among the seven countries (including Portugal, Spain, Montenegro, Italy, Greece, Egypt and Croatia) that should expect an upswing. According to the report, the results concerning future predictions “speaks volumes” about luxury properties’ perceived resilience and appeal as an investment avenue.
Type of properties most appealing in each country
Aiming to comprehend the preferences of high-net-worth individuals within the luxury property landscape, the report also included insights regarding the types of properties that carry the greatest appeal across different countries.
According to the report, beachfront properties emerged as the unequivocal favourite in all countries under review including Portugal, Spain, Montenegro, Italy, Greece, Egypt, Cyprus, Côte d’Azur and Croatia.
“These prime pieces of real estate, bathed in natural beauty and tranquility, offer a lifestyle that is greatly desirable to the HNWI clientele. The allure of exclusive beach access, sweeping sea views, and the prospect of a peaceful, private residence evidently make beachfront properties a prized possession in the luxury real estate market.”
City apartments, with their distinct appeal, secured the second position in terms of attractiveness.
Occupying the third spot are historic properties, which carve “a niche in the luxury real estate market that caters to HNWIs who value history and architectural elegance”.
Appealing in Greece, according to the findings, are beachfront properties and luxury island villas.
The H1 2023 Market Report Greek Luxury Homes was published by Greece Sotheby’s International Realty in collaboration with eight other Sotheby’s international realty offices in the Mediterranean.
Greece Sotheby’s International Realty is a leading luxury real estate agency in Athens that specializes in the promotion of homes for sale in Greece and the Greek islands as well as in luxury rentals in selected locations on the Greek mainland.