Demand for real estate on the Greek islands has “skyrocketed” in the last year with foreign buyers coming mainly from central Europe, says Sven Odia, CEO of Engel & Volkers.
As the trend of staycations remain strong, a second home in a Mediterranean destination offers owners the chance to escape the city and enjoy quality time in nature amidst ongoing uncertainty stemming from the pandemic.
“International buyers, especially from Central European countries, continue to invest in second homes in Greece. Interest in properties on Crete, Corfu, other islands and the coastal areas of the Peloponnese has remained very high,” says Odia.
“Exclusive villas near white sandy beaches are especially popular on Mykonos, Paros and Rhodes. A detached home can cost up to 8 million euros in Paros and 4 million euros in Rhodes. Apartments in highly-favored areas of Rhodes reach a maximum of 6,000 euros per square meter. Prices are expected to remain stable throughout 2021, “ he adds.
Engel & Volkers goes on to highlight that demand is also strong for a home on the French Riviera, as well as in Spain and Portugal. It is also pointed out that holiday homes in the North Sea are growing in appeal for Germans.
Demand for second homes in Spain increased steadily throughout 2020 and 2021. International buyers from Northern and Central Europe continue to show great interest in properties on the Balearic and Canary Islands.
Mallorca remains one of the most sought-after islands, with German clients accounting for 63% of purchases, followed by the British (12%), Scandinavians (6%), and the Swiss (3%).
The island’s capital is benefiting from major investments in modernisation projects, as well as the realisation of more environmentally friendly mobility concepts. This is enhancing the overall appeal of Palma de Mallorca, especially among clients looking for a sustainable home in the Mediterranean with long-term potential and a high quality of life.
Lisbon has also seen a significant increase in demand for residential properties since the start of the pandemic. 65% of investors in Lisbon are Portuguese, while the remaining 35% are international buyers from France, the UK, Brazil, Germany, and China.
Lisbon’s pleasant climate makes it ideal for anyone looking for properties with a balcony or garden. Prices are still moderate in comparison to other European cities, and government investment incentives like the so-called “Golden Visa” attract foreign buyers.
The French Riviera is known for high-end real estate and picturesque coastal villages. Since the number of properties in the region is extremely limited, the Côte d’Azur stands out as an exclusive destination for wealthy Parisian clients and international buyers. Most cross-border buyers come from Italy, Belgium, Switzerland and Germany. Approximaltely 50 percent of buyers in Cannes are from abroad , while the percentage of foreign buyers in Saint-Jean-Cap-Ferrat is nearly 75%.
Vacationing in Germany
The North Sea also offers attractive islands for anyone looking to purchase a second home in a peaceful location on the water. The East Frisian and North Frisian Islands off the North Sea coast never cease to impress. Sylt, for example, is one of the locations with the highest real estate prices in Germany. A single-family home can cost as much as 15 million euros. Anyone looking to purchase a vacation home on the islands can pay as much as 19,000 euros per square meter. Since the summer of 2020, demand for these properties has never been higher.
Demand in Schleswig-Holstein is so high that it’s becoming harder and harder to find available properties. Property prices have been climbing steadily in Tegernsee since the start of the pandemic in 2020. The highest prices for premium vacation homes can reach as much as 20 million euros. Holiday homes in Germany are becoming increasingly popular with younger buyers.