The Greek holiday home market still faces significant challenges, despite the relative recovery recorded in previous years. Factors such as general economic uncertainty, changing climate conditions and the increase in borrowing costs have created a difficult environment for the development of this particular market.

In particular, as pointed out in the latest GEOAXIS Winter Holiday Home Values ​​Observatory 2024/2025, the general insecurity for the future, the absence of an extended winter, high lending rates and significant construction costs negatively affect this market.

Although relative to the historic highs of 2008, values ​​are still recorded more than half (-55%), the trend of recent years indicates that we are entering a new phase of value compression.

With reference to the annual change 2024 – 2023), there is a minimal positive change in the asking prices of winter holiday homes for Arachova in Boeotia and Karpenissi in Evrytania of 2.01% and 1.49% respectively. Sales prices remain stable in Agios Athanasios Pella and Trikala Corinthia.

In more detail:

• In Arachova, from 1,594 euros/sq.m. in 2023, the asking price is currently at 1,626 euros/sq.m. (2.01%).

• In Agios Athanasios, from 1,053 euros/sq.m. in 2023, at 1,063 euros/sq.m. (0.95%).

• In Karpenisi, from 1,008 euros/sq.m. in 2023, at 1,023 euros/sq.m. (1.49%).

• In Trikala, Corinthia, from 1,097 euros/sq.m. in 2023, at 1,106 euros/sq.m. (0.82%).

Change 2024 – 2008

Compared to the highs of 2008, there is a very large and horizontal decrease in the four study areas, which averages around -55%.

In more detail:

• The largest decrease is presented by Agios Athanasios, where from 3,301 euros/sq.m. in 2008 the value is currently at 1,063 euros/sq.m. (-68%).

• In Karpenisi, from 2,308 euros/sq.m. in 2008, today at 1,023 euros/sq.m. (-56%).

• In Trikala, Corinthia, from 2,250 euros/sq.m. in 2008, today at 1,106 euros/sq.m. (-51%).

• In Arachova, from 3,000 euros/sq.m. in 2008, today at 1,626 euros/sq.m. (-46%).

Demand and Supply

Despite the almost halving of prices compared to the beginning of the crisis (2008), demand is extremely soft. Several builders who invested in luxury homes with a total cost of more than 1,500 euros/sq.m. they are locked in, as selling below cost does not trigger demand either. The example in Livadi tis Arachova is typical, where dozens of complexes remain complete with no prospect of immediate disposal.

The median total area of ​​a country house (including ancillary areas) is 144 sq.m., with the largest areas in Arachova (160 sq.m.) and the smallest in Trikala Corinthia (130 sq.m.).

The median age of a holiday home is 22.5 years, with the oldest in Karpenisi (37 years) and the youngest in Arachova and Agios Athanasios (17 years).

According to Geoaxis estimates, uncertainty about the immediate future combined with shrinking disposable income continue to rank the acquisition of winter holiday properties as an option off the agenda for the majority of Greeks, resulting in stagnation and possible future compression of values.

The study areas include Arachova in Boeotia, Agios Athanasios in Pella, Karpenissi in Evrytania and Trikala in Corinth. The selection was made to cover the famous winter tourist destinations of the country. In each region, sites with typical characteristics were selected, taking into account the homogeneity and reliability of the available data.

Who buys winter homes?

Buyers of winter homes in Greece, according to convergent estimates of real estate consultants contacted by APE/MPE, mainly come from:

Domestic buyers: The majority of the small number of Greeks come mainly from urban centers such as Athens and Thessaloniki and choose areas that combine easy access and tourist development (eg Arachova, Trikala in Corinthia).

Buyers from abroad come from Cyprus, mainly due to the close cultural ties, as well as from Balkan countries from Romania, Serbia and Bulgaria, with an interest in areas near the borders. Buyers from Germany, the UK and the Nordics are also looking for winter homes in ski areas. In recent years there has been interest from Israelis, mainly for investment opportunities.

Most foreign buyers prefer areas with good tourism infrastructure, natural beauty and the possibility of short-term rental for return on investment.

Climate change and the effect on winter housing

According to international reports, ski resorts, which are a key incentive for the purchase of winter holiday homes, are recording a decrease in operating days due to insufficient snow cover. In particular, the areas located at lower altitudes (2,500 m.) face even greater difficulties.

In Europe, in fact, many banks avoid financing projects for ski resorts at low altitudes, as they are considered unsustainable in the long term.

The increased energy prices put a burden on the ski resorts, reducing the possibility of operation and negatively affecting the local real estate markets in regions of Europe as well as in our country.

As Yiannis Xylas, managing director of Geoaxis, reports to APE/MPE, just as regions of the Alps try to become a 12-month destination by organizing summer activities, so the Greek winter destinations could attract tourism with similar actions. Planning, consent and vision are required from the local actors (Municipalities, Hoteliers, Professionals, Chambers, etc.). It is a difficult situation for our country where individual initiative and not collective initiative dominates. In any case, Mr. Xylas in the long term due to climate change we will see an increase in interest in winter destinations especially near Athens.