Holiday vs. Urban Residences: Where Should You Buy in Greece?

Coastal Serenity or Urban Convenience?

Choosing between coastal holiday properties and urban residences in Greece depends on your priorities: sun-soaked relaxation by the beach or dynamic urban access. Both options offer unique advantages for future homeowners and investors, particularly as the Greek real estate market continues its upward trajectory. With property prices having risen by 7.5% nationally in 2024, researching and understanding these markets is critical.

The Allure of Beachfront Living

For foreign buyers,coastal or beachfront holiday homes remain the most appealing properties of the Greek real estate market. Established tourism destinations and coastal areas like Northwestern Crete and the wider Chania area combine the authenticity, the natural beauty and the historic and cultural heritage with strong developed infrastructure. These locations attract buyers seeking to rent-out their properties to vacationers as the demand is very high and the tourist season in Crete is quite extended. Contemporary residential complexes in such locations are usually high-quality developments offering luxurious amenities such as modern design, communal and private swimming pools and immediate access to beautiful beaches, all factors contributing to the lucrative short-term rental potential of these properties.

Advantages of City Living

Urban centers like Athens, Thessaloniki and other major cities in Greece offer all the advantages of city living: immediate access to business hubs, historical and cultural sights, entertainment, educational institutions and also all necessary for modern living infrastructure: healthcare services and an extended network of public transport and domestic and international travel connections. Despite the fact that under the new Golden Visa legislation, residency permits are offered with real estate investments with a minimum of 800.000 Euro in premium urban locations, there are still more reachable opportunities to enter the Greek real estate market and these are in new or emerging neighborhoods where old industrial buildings are being refurbished and remodeled into modern residences and also in smaller cities in Greece in terms of population. Moreover, urban properties typically require less maintenance compared to seaside homes and are offered mostly to longer-term tenants including local professionals and students.

Investment Considerations

New residential developments near Chania and in the northern Crete coastal locations in general, ensure enduring, long-term value for their owners. Quality of design and construction, the highest A+ energy consumption classification and their premium location by the sea are all factors adding up to this long-term value. Investment wise, the strong and growing tourism visitation, the high demand for accommodation and the extended, almost year-round tourist season ensure high revenues from short-term rentals whilst investment in urban areas is equally lucrative but at a longer-term perspective.

Why Crete Stands Out

The northwestern coast of Crete offers a unique balance between a lively urban lifestyle and a relaxed coastal retreat. With immediate access from all major European cities with direct flights to its international airport, locations near Chania combine the proximity to a vibrant town center with the authenticity and the serene living experience very close to nature and some of the most renowned beaches in Europe such as Balos, Falasarna and Elafonisi.  Properties in these locations offer a more relaxed living experience compared to the bustling well known islands of the Cyclades whilst enjoying, at the same time, very high demand for the greatest part of the year.

Think before you decide

Evaluate these factors when making your choice:

• Holiday homes in coastal areas: Ideal for those that appreciate a beautifully designed property in contact with nature, for retirees enjoying a relaxed environment surrounded with good infrastructure, for those that can work remotely and digital nomads and for those looking for a high yielding rental property.
• Urban residences: Better suited for those that enjoy the comfort and amenities of city living, for permanent or more full-time residents and for those looking for a stable and for those looking for a safer and longer-term return on their investment.
• Hybrid options: Consider coastal suburbs in major cities or smaller cities with access to good beaches combining the advantages of urban areas with the tranquility of nature.