Local Real Estate Market Trends Update
The real estate market in Crete has shown significant growth and resilience in 2024, making it an attractive destination for both buyers and investors. Here’s an overview of the current market trends:
1. Increase in Property Prices
As of September 2024, the average price for residential properties for sale in Crete reached €2,154 per square meter, reflecting an increase of 6.74% compared to the same period in 2023. The highest prices were recorded in Chania, where properties sold at an average of €2,517 per square meter, while the lowest prices were in Heraklion at €1,770 per square meter. This steady price increase highlights the continued demand for real estate in Crete, particularly in popular regions like Chania and Rethymno
2. Rising Rental Costs
The rental market has also experienced growth, with the average rental price reaching €8.85 per square meter in September 2024, up 2.43% from the previous year. Rental prices are highest in Rethymno Prefecture, averaging €9.20 per square meter, and lowest in Lasithi at €7.45 per square meter. This increase in rental costs is primarily due to high demand in prime tourist locations, where properties are sought after for short-term and vacation rentals
3. Strong Demand for Luxury Properties
Luxury villas and high-end homes, especially those with sea views and proximity to the coast, continue to attract foreign investors. There has been a notable rise in demand for such properties in Chania, Heraklion, and the southern areas of Crete, with prices ranging from €250,000 for two-bedroom homes to over €3 million for more expansive properties with pools and large plots of land.
4. Foreign Investment Influence
Foreign investments remain a key driver of the Cretan real estate market. Buyers from Western Europe and other international locations are drawn to Crete’s competitive property prices, compared to other Mediterranean destinations, and its lifestyle appeal. However, there are signs that the pace of foreign investment may stabilize in 2024, which could lead to a more moderate increase in property values moving forward.
5. Market Outlook for 2024
While the market is expected to remain strong, a potential slowdown in price hikes is anticipated due to factors such as high construction costs and limited availability of energy-efficient properties. These factors may cause a slight moderation in the growth rate, but the overall trend is still positive, making Crete an excellent option for property investment.
Overall, the real estate market in Crete is thriving, driven by rising property and rental prices, strong demand for luxury properties, and continued interest from foreign investors.