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It is a fact that the Greek real estate market is recovering in recent years. Since 2017 each year seems to be getting better and there is optimism for the future. The real estate sector is expected to be intensified activity this year throughout Greece with changes that will reshape the market.

To begin with, the government's decision, to suspend for three years (until the end of 2022) the enforcement of 24% VAT on real estate with a building permit after 01/01/2006. So far, both Greek and foreign investors prefer older real estate in order to avoid this tax. So, the demand for newly built homes has been reduced. As a result, the construction sector was driven to a recession and so there are no new investment opportunities on this specific market. It is obvious that this decision will affect the current situation drastically, as it is estimated that approximately 90,000 new properties will arise in the real estate market. The construction industry will start building again, so these categories ’ properties and the new ones that will be built, will become an attractive investment opportunity relative to other real estate types in Greece and Europe.

Also, a designating factor for this market is the readjustment of real estate tax values. This process will be finished until the 17th of March 2020. In more detail, the intention is to bring into alignment the tax values with the market values, ​​as well as to integrate 3,000 new areas that had not initially been included in the tax value system, throughout Greece. It is true that this procedure will affect some taxes related to the tax values of real estate (e.g. property transfer tax, inheritance tax). These developments may lead to an increase in sales for the first half of the year, especially in the areas that will be integrated into the tax value system for the first time.

Another important fact is the government's decision to reduce the tax on renovations. More specifically, for the owners who decide to renovate their property in 2020, 2021 and 2022, there will be a 40% discount on the total amount paid for the services provided. The total amount will be evenly distributed at the end of each year and will be exempted for the next four years. At this point, it should be noted that the highest amount that can be recognized for expenditure is 16,000€. So, the maximum total amount of deduction an owner can have is 6,400 €. As a result, new real estates that were untapped will enter the market, both within the city of Chania and at the surrounding villages where there are many empty and derelict houses. Thus, it is expected that the supply of houses and apartments within the city of Chania will increase. Similarly, in the villages of Chania, there will be new opportunities for buying a country house or secondary residence, as many properties will be renovated.

It is certain that also the Golden Visa policy will continue affecting and configuring the Greek real estate market and the local market of Chania in particular. It is highly believed that more and more investors, whose country of origin is not a member of the EU, will tend to invest in our island, buying properties which prices are higher than 250,000 €, in order to obtain a residence permit in our country.

Regarding the insight of the real estate market in Chania right now, there is a relative increase in house prices for sale throughout the prefecture of Chania. In the last quarter of 2019, the residence price per square meter is estimated at 1,676€, while for the corresponding period of 2018 it fluctuated at 1,650€. Generally, in Chania, the area of ​​Vamos seems to hover at high price levels, as the residence price per square meter reaches 2,111 €, followed by the Akrotiri area where the price reaches 1,906 € per square meter. In contrast, the area of ​​NeaKydonia is one of the cheapest as the residence price per square meter reaches 1,609 €.

As for the plots, there is a slight increase in prices throughout the prefecture. In more detail, the price per square meter in the last quarter of 2019 is estimated at approximately 57 €, while the price for the corresponding quarter of 2018 was approximately 55 €. The most expensive area is the center of Chania, where the price per square meter is estimated at 349 €, while the cheapest area seems to be Platanias, where the price per square meter reaching approximately 60 €.

The real estate market is slowly changing but the new year modifications are crucial. It is sure that 2020 will be a very interesting year for the real estate sector all over Greece.

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The images used in the text above are from www.freepik.com & www.freepngimg.com

The economic data used in the text above are from www.spitogatos.gr