More and more real estate buyers looking for an island home in Spain and Greece in the midst of a pandemic.
The secondary market in the Spanish and Greek islands is doing well as the pandemic pushes more shoppers to secure their own quiet access to beaches away from busy seaside resorts.
According to Engel & Volker CEO Sven Odia, remote work has also played a key role in boosting this segment of the real estate market, with holiday homes in Portugal, the French Riviera and the North Sea also popular. He adds :
Highly sought after Spanish islands
The demand for second homes in Spain has increased steadily throughout 2020 and 2021. International buyers of Northern and Central Europe continue to show great interest in properties on the Balearic Islands and Canaries.
Mallorca remains one of the most sought after islands, with German customers accounting for 63% of purchases, followed by the British (12%), Scandinavians (6%) and Swiss (3%).
The island’s capital is benefiting from significant investments in modernization projects, as well as the realization of more environmentally friendly mobility concepts. This reinforces the general appeal of Palma de Mallorca, especially among customers looking for a sustainable house in the Mediterranean with long-term potential and a high quality of life.
the the most expensive and sought after locations on the island include Port Andratx, Santa Ponsa, Bendinat, Portals and Son Vida. In 2020, villas in the upscale port city of Port Andratx achieved an average asking price of 4.3 million euros. To the south-west, luxury properties with sea views that combine modern and mediterranean architecture items are particularly sought after.
Families and professionals are increasingly drawn to the island all year round, thanks to a wide range of international schools, excellent modern medical care and communication technologies. The trend towards permanent residence in Palma’s most exclusive area is also evident when it comes to clients looking for a home in Son Vida. This community of luxury villas with its renowned golf courses attracts both affluent families and couples, and recorded average asking prices of well over 4 million euros last year. The higher demand includes all other regions of Mallorca, for example the west, south-east and center of the island.
Germans and British too dominate the real estate market in Tenerife with 60% and 20% of purchases respectively.
Ibiza has also seen an increase in request for properties, especially in the rural areas of the island. The Spaniards represent 22% of buyers, followed by the Germans at 20%.
Interest in Greek islands “skyrockets”
Greece and its islands are one of the most attractive destinations in Europe. Over the past year, the demand for real estate in the Greek islands has exploded. International buyers, especially from Central European countries, continue to invest in second homes in Greece.
Interest in properties in Crete, Corfu, other islands and the coastal areas of the Peloponnese has remained very high.
Exclusive villas near white sandy beaches are especially popular in Mykonos, Paros and Rhodes. A detached house can cost up to 8 million euros in Paros and 4 million euros in Rhodes. Most popular apartments Rhodes neighborhoods reach a maximum of 6,000 euros per square meter. Prices are expected to remain stable throughout 2021.
the French Riviera is known for its high-end real estate and quaint coastal villages. The number of real estate in the region being extremely limited, the Côte d’Azur has established itself as an exclusive destination for wealthy Parisian clients and international buyers. Most cross-border buyers come from Italy, Belgium, Switzerland and Germany. Around 50% of Cannes buyers are foreigners, while the percentage of foreign buyers in Saint-Jean-Cap-Ferrat is almost 75%.
The most expensive villas with lush gardens and swimming pools is located in Saint-Jean-Cap-Ferrat, where goods sell from 4 million euros up to several hundred million. There are, however, less extravagant villas for 2.5 to 50 million euros. In Cannes and Saint-Tropez, the prices of some luxury houses and villas reached 35 million and 30 million euros respectively in 2020.
Throughout the pandemic, many wealthy buyers were investing in properties on the French Riviera to live in the south of France all year round.
Prime locations in Portugal
Lisbon has also seen a significant increase in demand for residential properties since the start of the pandemic. 65% of investors in Lisbon are Portuguese, while the remaining 35% are international buyers from France, UK, Brazil, Germany and China.
Lisbon’s pleasant climate makes it ideal for anyone looking for properties with a balcony or garden. Prices are still moderate compared to other European cities, and government investment incentives like the so-called “Golden Visa”Attract foreign buyers.
More and more young buyers are heading to Lisbon, especially as the city is establishing itself as a hub for entrepreneurs and young talents. The most desirable areas are Belém, Parque das Nações and Chiado.
Holiday at home in Germany
The North Sea also offers attractive islands for anyone looking to purchase a second home in a peaceful waterfront location. The East Frisian and North Frisian Islands off the North Sea coast never cease to impress with their unspoiled natural landscapes and pristine beaches. Sylt, for example, is one of the places with the highest real estate prices in Germany. A single family home can cost up to 15 million euros. Anyone looking to buy a vacation home on the islands can pay up to 19,000 euros per square meter. Since the summer of 2020, the demand for these properties has never been higher.
The demand in Schleswig-Holstein is so high that it is increasingly difficult to find available properties. Real estate prices have risen steadily in Tegernsee since the pandemic began in 2020. The highest prices for high-end vacation homes can reach up to 20 million euros.
Holiday homes in Germany are also increasingly popular with young buyers. Good financing options and low interest rates make buying a home more attractive to young families. Some acquire a property with other families and share the house throughout the year. This affordable option gives people the ability to work and live with their children in more desirable locations.
Germans, especially residents of large cities like Berlin, Munich and Hamburg, are continue to show interest in buying properties in Germany. By choosing locations nearby, they reduce travel time and make it easier to escape to the countryside for shorter stays. The most popular places are those that are easily accessible from cities.