By
Anna Kolyda
ΚOSTAS Panagakis met Savvas Savvaidis in early August at the headquarters of Greece Sotheby’s International Realty in central Athens. The topic of discussion was the status of the luxury home market in 2023 in view of the September publication of Greece Sotheby’s International Realty’s much-anticipated report.
International Press describes Greece as one of the world’s most promising luxury home markets; what do you think has changed?
Only a few years ago, deals ranging between €3 to €5 million for holiday homes were making headlines. As the country was exiting one of the worst recessions in the history of any Western economy, buyers realized it was again safe to buy a dream home in one of the world’s most attractive and desirable holiday locations.
As the economic climate continued to improve and confidence in the Greek economy steadily increased, we began brokering deals in the range of €10 million in various locations across the country as early as 2020.
We are now seeing deals in the €20 million range as more and more affluent individuals discover Greece’s luxury home market and its significant advantages. Notable sales recently concluded in Athens, Porto Heli, and Mykonos are just the beginning of what lies ahead. The current prices of trophy assets in Greece are merely a fraction of the values observed in Southern France, Italy or even Spain, with construction quality often surpassing our customers’ expectations. Worth highlighting is our achievement of over 23 national record transactions across 15 diverse locations within the country over the last three years.
Pricing has been rather consistent for luxury homes across the main locations of the country at levels between €6,000 per m2 to €12,000 m2 while trophy assets have already reached levels of €20,000 per m2 and in some cases even higher. We expect the trend to continue and breach the gap with Mediterranean’s other luxury destinations in the next five to eight years. After all it seems that the new luxury is about beauty, abundance of space, privacy and authenticity and Greece seems to have them all and more.
That said, optimism must be balanced with perspective. Greece is still a younger luxury market compared to its Mediterranean peers, and if pricing runs too far ahead of maturity, we risk diminishing long-term value. We are already observing significant upward trends in certain locations, which makes it essential to ensure that growth remains measured and firmly aligned with the country’s fundamentals.
Who are the investors of luxury real estate and tourism and what are the key projects they are involved in?
Prominent investments, such as the recent development of Skorpios led by Rubolovlev, which is projected to surpass €500 million and poised to become one of the world’s most luxurious island resorts, continue confirming Greece’s promising standing for the upcoming decade.
Costa Navarino, a half-a-billion-euro private investment in the luxury sector, has just opened the doors of Mandarin Oriental in Southern Peloponnese. Simultaneously, all the resort’s villas, four golf courses and four five-star hotels have been sold out at prices exceeding €12,000 per square meter.
Kea One & Only, a mixed investment spearheaded by the Investment Corporation of Dubai, is set to open its doors in six months. Meanwhile Grivalia Hospitality, the real estate arm of Fairfax in Greece, boasts an extended investment plan for the country. Their recent acquisition of Amanzoe and the ongoing development of One & Only Aesthesis in Glyfada are prominent highlights of their endeavors.
Besides institutional investors, notable individuals several of them amongst the top 100 Forbes and royal families have purchased in the last 5 years an increasing number of trophy homes as a lifestyle choice. Most of our clients are Americans, British, Swiss and Germans while the prevalent age group for the top tier properties is 50-65 years, with Corfu steadily at the top of the demand followed by Athens Riviera and Mykonos.
Global real estate investor Hines International, having already invested €729 million in managed assets in Greece,is now entering the Athenian market with the development of high-end residential complexes along the Athens Riviera.
The Marina Tower, a masterpiece by Fosters + Partners in the Southern Suburbs of Athens has achieved great success, with over 80% of units already sold based on the plans!
In close proximity and adjacent to the Four Seasons Athens a brand new mega yacht hub, Astir Marina is nearly completed and expected to be operational in early 2024.
What is Greece’s competitive advantage over other more established luxury destinations in the Med?
An increasing number of Ultra High Net Worth Individuals (UHNWI) perceive quality of life and luxury differently. Especially post-pandemic, people have come to appreciate the positive impact of pristine locations, homes embraced by untouched nature, clean air, crystal-clear waters, delightful weather, genuine interactions and the taste of organic food reminiscent of past decades, on both themselves and their loved ones. And all without concerns for the privacy and safety of one’s family.
At the same time, the glamour of Rome, Montecarlo, or Paris is only a couple of hours away. After all, Athens and its vibrant lifestyle is less than a 40’ flight from any location in Greece.
You are considered one of Greece’s top experts in luxury real estate. According to your experience, what do you think the next decade will look like for the country?
According to Goldman Sachs, Greece is on the cusp of regaining investment grade status more than 12 years after losing that critical credit rating, marking a sharp reversal for an economy that was roiled during the euro area’s sovereign debt crisis.
Greece is an exceptional economic story. It has made a remarkable revival!
Long-term investors and big pension funds and Insurers, among other investors, are expected to pound billions in the country in the coming years. This change would provide anffordablr and more stable funding for the country’s future needs. The Greek banks are finally entering into the mortgage business. It is rather surprising that until now, 80% of all property deals are in cash. Such an entry will significantly boost the property market in Greece in the years ahead. We are just at the beginning of a long, prosperous, virtuous cycle for the luxury home market in the country.