Greece is yet to get out of the severe economic crisis that it has been in since 2011, but the party is still very much on in some of the Greek islands such as Mykonos. Indeed, there isn’t even a hint of a crisis in Mykonos, which is described as the Greek Riviera.
Mykonos is compared to Ibiza in Spain, but is much smaller. Properties for sale in Mykonos, Greece are certainly on the expensive side – this despite the fact that the property market in Greece has been on the decline for a while now.
Mykonos is a very expensive island. An average hotel room here costs as much as €507, which is even higher than that in Monte Carlo, which is considered to be one of the most expensive places in the world. Many international hotels, restaurants and bars have entered Mykonos, excited by the opportunities that the island has to offer.
There’s no question that Mykonos is the best performing real estate market in Greece. Real estate agents in Mykonos have reported getting hundreds of enquiries for luxury properties in Mykonos every week, especially from wealthy individuals from emerging nations such as China, Malaysia, Israel, Brazil, Russia, etc.
Indeed, Mykonos attracts the same type of incredibly wealthy international property seekers such as those seen buying luxury real estate in Tuscany, Switzerland and the South of France.
Mykonos offers a fascinating mix of tradition and glamour, which is very difficult to find in Europe. Indeed, most international investors only look to buy properties in other popular Greek islands such as Corfu, Crete and Rhodes, only after failing to buy luxury property in Mykonos, Greece.
So the property market in Mykonos remains very strong, despite the ongoing economic crisis in Greece. Athens has been badly hit – prices there have been down by 43% since 2008. Other areas in the mainland have been hit even worse, with property prices declining by 50% or more.
However, Greece has been paying off its many debtors according to plan, and while the economy is still pretty much in the doldrums, there is certainly a stability in Greece that was lacking a year ago. Investors have been reasonably assured that Greece has no plans of leaving the European Union, despite Brexit.
Mykonos is best poised to take advantage of the newfound stability in Greece. As Mike Braunholtz at Prestige Property Group says, Mykonos “has displayed the highest resistance in the current turmoil, with demand from international buyers almost undiminished.”
For sure, the situation is far from being perfect as yet. Even in Mykonos, property prices are 30% lower than what they were in 2008. But this can also be attributed to the fact that property prices in Mykonos were inflated during the boom times of 2007-08.
There are other issues of concern. The fear of a Grexit hasn’t completely disappeared, although it’s pretty low at the moment. There is also a risk of the Greek government increasing property taxes to shore up its revenues. This could make international investors reconsider their plans to invest in Mykonos property.