Rental Prices for Luxury Villas in Mykonos Drop This Year
This year, the cost of renting luxurious villas in Mykonos has decreased, primarily due to an increase in availability and a decline in visitor numbers compared to last summer. The shift in the market has led to reduced rental prices, creating opportunities for potential vacationers.
Sales Prices of Vacation Homes Continue to Rise
In contrast, the prices for purchasing vacation properties have been on the rise, driven by consistently high demand from both local and international buyers. According to Mr. Ioannis Revithis, the honorary president of the Attica Real Estate Association, “This year, with the drop in visitors, rental prices for villas are lower by 20%-30%, and they will not reach the occupancy rates of the previous two years. The reasons include the large number of such properties available in the market and a decrease in visitors’ disposable income due to the global economic crisis.”
Current Rental Market Overview
The current market for renting these properties this summer starts at around €800 per day for a three-bedroom villa with a pool, with rates potentially soaring up to €3,000 per day, depending on location and property specifications. There are even ultra-luxurious properties where rental prices can reach staggering heights, sometimes as much as €15,000 per day, catering to a completely different clientele of multimillionaires and billionaires. “It’s worth noting that these prices often include a range of amenities, such as complimentary private transportation throughout the day, personal security, a housekeeper, a chef, and on-site maintenance staff,” Mr. Revithis adds. Despite the high costs, he indicates that this year’s prices reflect a correction compared to past years.
Visitor Trends Impacting the Market
Mr. Revithis further reports, “So far, there has been a decrease of about 10%-15% in visitor numbers from Europe and the USA. This is attributed to rising family expenses, increased airfare and shipping costs, and the economic conditions in various countries, influenced by ongoing conflicts in Central Europe and the Middle East. This decline is not only noticeable in Mykonos but across tourist destinations worldwide, especially along the French and Italian Rivieras.” Nonetheless, he notes that the influx of famous and high-profile visitors to Mykonos this summer is significant and promising, with 150 private jet arrivals recorded just last week and a total of 1,000 since the start of the year.
Positive Trends in Property Sales
Simultaneously, the property sales market is showing much more optimism, with sustained high demand this year and prices remaining robust. Factors contributing to this trend include a suspension of building permits and revisions over the past year due to a new spatial planning scheme for tourism. According to Mr. Revithis’s data, the average sale prices for properties ranging from 150 to 300 square meters are around €5,000 per square meter. Meanwhile, high-end villas located near the sea or offering unobstructed sea views exceed €10,000 per square meter.
Impact of Construction Costs on Selling Prices
It is important to note that the expenses associated with construction have nearly doubled over the past two years. This significant increase has played a crucial role in keeping selling prices at elevated levels.
The benchmark for these prices continues to be the newly constructed properties, which reflect the current market conditions. As construction costs rise, developers and builders are compelled to maintain higher price points to ensure profitability.
The Current Real Estate Landscape
The real estate market is heavily influenced by the fluctuations in construction costs. As these expenses rise, the affordability of homes becomes a pressing issue for potential buyers. Many are finding it increasingly difficult to enter the market or upgrade their living situations due to the sustained high prices.
In summary, the doubling of construction costs over the last couple of years has had a profound effect on the housing market, leading to elevated selling prices that are likely to persist as long as these trends continue.
