General Market situation in Rhodes and Greece
A differentiated approach is necessary to understand the property market on Rhodes and in the rest of Greece, especially the coastal regions and the various islands. Accurate market analyses are only possible when the market is subdivided into segments, regions and locations.
Publications from various institutions are often too general and cover the entire Greek property market, or they are limited to one single financial institution’s company data and research. Both approaches distort reality significantly and lead to inaccurate market analyses.
In order to map the market as realistically as possible, we have divided the residential property market in Greece – and in particular this market report dealing with the island of Rhodes/South Aegean – into the following two segments:
This segment is primarily dominated by locals and has experienced a substantial decline in prices, especially in the cities on the mainland.
Luxury and upscale market for holiday/secondary homes
This market segment is primarily dominated by EU citizens of non-Greek nationality and by wealthy citizens of Greek nationality, and has experienced only a slight decline in prices since the crisis began.
The market for luxury and holiday homes must be analysed separately from the Greek housing market. The high level of unemployment and low lending volume of the banks associated with the economic, financial and bank crisis has led to declining prices for typical first homes in particular. Many owners of holiday or luxury homes – usually wealthy foreigners or Greeks living abroad – have acquired their property without or with only little borrowed capital and are thus under little pressure to sell. What’s more, the economy in their home countries is mostly thriving. The result is a natural price stability in the market for luxury and upscale holiday homes...