News and views for people interested in buying a house in Crete. We have created this page in order to keep anyone who has bought a house in Crete or is just thinking about buying a house in Crete, whether as a holiday home, permanent residence or investment property, up to date with what is going on on this beautiful Island. Many people fall in love with the unique charm of Crete every year and some of them go on to make Crete their permanent home while others buy a house here as an investment holiday home and somewhere that they can look forward to retiring to. Thousands flock to the Island of Crete every summer to enjoy the many attributes that Crete has to offer but what is it like to live here year round? Are there any pitfalls to buying a house on Crete and how easy is it? On this page we aim to give you an insight into whether a house on Crete would be ideal for you and if you have already taken the plunge please feel free to share your experiences with us as many other prospective Crete house buyers will be very interested to learn about your opinions and experiences, positive or otherwise! Please contact us with your views.
Following the commitment of the Minister, George Souflias that the legislation for the establishment of 61 villages in the prefecture of Rethymno will be voted on at the latest by mid-February, a clear indication has been given that a period of great anguish, anxiety and waiting for thousands of Rethymnon citizens, who saw their assets thrown into an unknown position and converted overnight from lawful to illegal will now come to an end.
Some good news at last!
Greece has come out in poll position in Flight Centre's 'Top 10 Where To Go In 2009' list. Based on the data revealing the destinations that have grown in popularity over the last year, Greece has been voted top thanks to its offering of "an affordable holiday, delicious food at reasonable prices, cheap sailing, local wine, beautiful beaches, sunshine, quaint villages... and little islands full of scenic surprises".
This recent accolade adds to the commendations that the country has received in recent months, with it also having done remarkably well in the World Travel Awards 2008, attaining awards for Europe's Leading Beach Resort; Europe's Leading Boutique Hotel; Europe's Leading Spa Resort; and Europe's Leading Conference Resort.
With the appeal of this beautiful country, it is clear to see why the latest World Travel & Tourism Council (WTTC) report has also been mightily favourable for Greece.
Figures for Travel & Tourism Economy GDP growth have shown a likely 3.7 per cent for 2008, with an average 3.9 per cent increase predicted annually for the next 10 years. These figures show that Greece is a popular market, with an increasing tourist market.
Irini Tzortzoglou, head of retail banking for Piraeus Bank UK, which offers mortgages on Greek properties, agreed.
"Greece has always been an extremely popular choice for traditional holidays but more recently residential tourism has been gaining ground fast," she said.
"The latest list of accolades achieved by the country has further still increased its popularity as one obvious but still fairly unexplored overseas property market.
"Accolades such as the one bestowed by the readers of Voyage magazine who voted Greece as 'Best Worldwide Destination' at the 2008 International Tourist and Cultural Festival in Bejing-Chaoyang are adding to the interest Greece has been recently attracting.
"In the current economic climate it is encouraging to see such positive news announced from the travel and tourism sector. Greece is a firm favourite, and it looks likely to stay that way.
"There are many synergies between the travel and property industries and even if current economic conditions cast some doubt as to the absolute number of visitors expected next year, the popularity of the country is growing both as a tourism and second home destination."
26th June 2008-"Blind" plots in Greece are no longer considered to be land that can legally be constructed on. According to a decision taken by the Greek High Courts "blind" land plots, in other words those that do not face public ground or a public road of at least 4m width, will no longer be granted building permits. This situation has contributed to the steady rise in property prices in Crete which is good news for those who have bought houses and villas on Crete.
Local town planning legislation which, for the past 20 years, has allowed these plots to be built upon has now been declared unconstitutional by the High Court of Appeals. Previously, provided that the land owners first conceded an area of their land to the local council as a public area or road connected to the already existing road networks, "light" was effectively shed on these "blind" plots of land transforming them into land that could be built on. This was considered to be particularly justified in certain communities in rural areas of Greece where migration of the local population away from the villages and into the bigger cities had seen the gradual stagnation of the local communities. This applied not least of course to many villages around the island of Crete. A bonus was even given allowing any subsequent construction on that land to be given a building rights area increase equalling 30% of the size of the public land or road conceded.
The High Court of Appeals stated in particular that it is not permissible for legislation allowing the creation of new public areas and roads in a sporadic fashion without the conducting of town planning surveys just so that land which is found within village limits and without facing previously existing public areas/roads can be recharacterised as legal to build on. Officials were reported to have said that town planning of built up areas and public roads and spaces cannot be allowed to be influenced solely by the interests of private individuals who have personal gains to be made in the slicing up of their land and its subsequent sale for development. Moreover the definition of these public spaces and roads should be the subject of extensive town planning surveys which would establish the needs of the particular area with reference to rational town planning criteria.
It is believed that this new court ruling will help to preserve the natural beauty which is to be found in many rural areas of Greece such as Crete and it is reassuring that Crete's many natural attributes will not be left at the mercy of exploitation. However the town planning studies talked about will have to be carried out speedily otherwise the strict building rules could end up being a noose round the neck of the local economies in Greece. In the meantime the prices of houses and villas in Crete continue to rise.
23rd May 2008-"Prime Conditions for Crete Property Buyers."
Financial experts claim Crete still offers one of the best investment opportunities for house buyers during the credit crunch. The situation in the Greek Islands and especially Crete is ideal for those looking for a secure investment in increasingly turbulent times.
The downturn in the UK housing market does not seem to have dampened appetites as people are keener than ever to buy property abroad and are looking for ways to tame the highly volatile currency markets to ensure they get the best deal when they invest. While the UK and other countries appear to be in the grip of a market slowdown, Crete property continues to increase its value.
Without doubt experts involved in the Cretan construction business know that they will be affected by the current crisis, but not as deeply as some other locations. Most experts predict that, although the extraordinarily healthy capital appreciation seen in the past few years of 15% or more in some cases will slow down, the prices of houses on Crete will continue to see growth. This is due to several factors including the strict building regulations causing the scarcity of attractive, buildable land and consequently its continual rise in value. It has also been suggested that property prices in Crete and Greece generally continue to rise due to a wiser approach by mortgage banks in the country. Traditionally lending in Crete has been tighter than in the UK. Until relatively recently it was almost impossible for prospective house buyers in Crete to secure a mortgage which means a property bubble fuelled by extensive lending was not created in Crete as opposed to some other countries. In the last quarter of 2007, the average Greek household debt was 45.3% of the GDP, compared to 97% in the UK. Now of course thankfully mortgages are accessible to residents and non-residents alike, but Greek banks have never been drawn into the somewhat irresponsible lending seen in other countries. While mortgages in the UK are becoming scarcer Greek banks are still offering non-resident purchasers interested in buying a home in Crete attractive mortgage packages. Greek banks continue to help a lot of house buyers realise the dream of owning a property in Crete despite the weaker pound. Subject to status and the type of real estate to be purchased some Greek banks can offer rates as low as 4.20% fixed rate for 3 years.
Overall, it seems that Crete property provides an enduring investment for those wishing to survive the credit crunch and now that mortgages in Crete have become more readily available this can only increase the demand by people looking to buy a house on Crete. Add to that the wonderful Cretan cuisine, enviable climate, friendly local people and awe-inspiring natural beauty and surely Crete will remain a major property investor magnet for many years to come!
22nd May 2008-"Third International Greek Tourism and Property Show".
Greek's third International Tourism and Property show is to be held in March 2009 and feature more 'hosted buyers' who proved to be a great success at this year's event.
Running for three days on the 27, 28 and 29th of March at the Olympic Fencing Hall at Hellenikon (old Athens airport) it will have even more space than the first two shows.
More space than before will be given over to information on Greece's real estate industry as the country attempts to attract more overseas investors.
After a trial at the 2008 show 120 'hosted buyers' have been invited for 2009 from various foreign markets including the UK, Ireland, Russia and Eastern Europe. The aim is to bring them into contact with exhibitors for an exchange of 'real life' experience, organisers said.
There will also be an international presentation from the top Greek builders, developers, hotel enterprises, real estate experts and tourist destinations.
Specifically on the property front is a formal unveiling of new investment plans for luxury villas, hotels, yacht marinas, golf courses, winter and summer tourism, alternative tourism and pre-fabricated homes.
However the property industry has an uphill struggle convincing Greeks to invest in Greece. Over the past two years Greeks have been more interested in buying in the Balkans, Bulgaria in particular.
Greek construction companies, mainly from the northern part of the country, have been building large residential, office and retail developments in Albania, Bulgaria, Croatia, Romania and, recently, Macedonia.
At the same time, hundreds of individual investors have been buying homes, which they either rent or use for recreation. Despite the interest in Bulgaria, Greek buyers still believe local property prices to be affordable.
14th May 2008-"Doom and gloom in the property markets
With the credit crunch continuing and no sign of the banks and lending institutions softening their crackdown on mortgage availability, buying to let is a big issue on the property forums this week." What better time than this then to consider investment in property overseas in Crete. With its wonderful climate, stable political situation and low crime rate Crete is a relatively untapped property hotspot. The island's popularity with tourists grows every year making the possibility of renting your house in Crete to tourists a potentially profitable business. Added to that mortgages are still being offered to potential house buyers by Greek banks making financing the purchase of a house in Crete a relatively simply procedure. As part of our extensive service we can assist in the arrangement of the mortgage for your home in Crete with local banks. For more information on short term and long term letting of your house or villa in Crete please click on the link to our relevant page on this website EOT licence.
Exhibitions
25.07-02.08 - Stelios Baklavas presents "Body Talk", a photographic exhibition.
05.08-18.08 - Konstantinos Polioudakis presents "Pictures of Words and Silence", paintings and audio-visual exhibits.
11.09-11.10 - Artists of the Ukraine present "Colour & Movement"
The exhibitions take place in the Artillery Hall and the Ibrahim Han Mosque; both are in the grounds of the Fortezza.
Entrance to the exhibitions is free.
