Increase in demand for luxury homes in Greece
A recent study by Greece Sotheby’s International Realty has shown an 11% increase in demand for luxury homes in Greece during the first half of 2024, with Greek buyers playing a significant role in this trend. Additionally, the value of sales has risen by 90% compared to the same period last year, indicating a higher number of transactions taking place this year.
US market remains popular
Following the trends of previous years, the US market continues to hold the top spot in demand, maintaining similar levels to the first half of the year.
Market Demand Trends in Europe
In the previous year, there has been a noticeable shift in market demand trends across Europe. Interestingly, Greece has seen a significant increase in internal demand, surpassing the United Kingdom in second place. The interest from Greece rose by an impressive 67%, while the UK saw a more modest 24% increase. France maintained its position in fourth place, with demand levels similar to those of the first half of 2023.
As expected, there was a significant decline in demand from the German market, reflecting a shifting landscape in consumer preferences and economic conditions. These trends highlight the dynamic nature of the European market and the importance of staying informed about evolving consumer behaviors.
Real Estate Market in Greece Sees a 23% Increase in Sales
The real estate market in Greece has been experiencing a crisis for the past two years, with historically low levels of consumer confidence. However, recent data shows a 23% increase in sales due to sellers adjusting to more realistic pricing of their portfolios. This marks a partial return to normalcy compared to the past two years, during which buyers were hesitant amid geopolitical and macroeconomic uncertainties.
The Impact of Inflation on Buyer Expectations
Inflation plays a significant role in shaping buyer expectations. The dramatic decline in inflationary pressures in key markets such as the United States, the United Kingdom, and the European Union has helped to stabilize inflation, which had reached its highest levels in 30 years, causing global concern.
According to Mr. Savvas Savvidis, President and CEO of Greece Sotheby’s International Realty, “Taking a long-term view of the figures from the first two quarters, we saw property owners…
Adjusting Real Estate Prices
Real estate agents need to adjust their selling prices to more realistic positions and be more flexible in sales negotiations. For the first time in a long time, we are seeing such a high conversion rate from leads to sales, and this is clearly due to the fact that buyers are both willing to buy and able to close deals at reasonable prices.
Buyer Sentiment in the Luxury Real Estate Market
Mr. Savvidis also highlights the fact that buyer sentiment in the luxury vacation home market is particularly volatile. The willingness to purchase such properties fluctuates significantly, making it important for sellers to be adaptable in their pricing strategies.
The Importance of Luxury Markets in the Mediterranean
A significant percentage of these markets are volatile, with our country holding only 3.5% market share in the Mediterranean in this category, far from being considered a established destination for Ultra High Net Worth Individuals.
