Outlook of Chania Residential Market – Summer 2022

What are the current trends in Chania Residential Market? What is the median selling price and how the inventory impacts the asking prices? According to our analysis, Chania residential property market has been improved but the remaining economic uncertainty may temper some of our predictions and forecasts.

COVID’s Impact on Residential, Nonresidential Development;

Currently, the real estate sector in Crete remains healthy and continues to attract new investors thanks to its broadly favorable long-term prospects relative to other investments. Moreover, as long-term market fundamentals remain broadly supportive, we expect stable growth.

However, the recovery will not foster long-run growth if economic resources from the EU are not channeled to the most productive sectors of the Greek economy.

Covid-19 has created countless uncertainties regarding the return on investment potential, project budget, and schedule for large and very large developments. Despite this, we remain generally optimistic about the real estate and construction sector outlook for the scope of this report and beyond.

Chania Residential Market Research Outcomes

According to our analysis, Chania residential property market has been improved but remaining economic uncertainty may temper some of our predictions and forecasts

The forecasts for seasonally adjusted residential property prices and pending sale contracts are more optimistic than our previous estimates because residential property sales and selling prices have stayed strong through the spring, amid progressively short inventory and high demand.

A Recovery was in Progress

Before the COVID-19 pandemic, – and for the first time after 2012 – the macroeconomic outlook for Greece seemed positive.

However, the COVID-19 pandemic and the resulting economic recession have affected most real estate transactions in Greece

Our Big Data Analytics forecast (RESTful) believes that residential property prices in Chania would have risen more than 9.0 percent by June 2022.

Our models also predict that annual residential property value growth will rise to 4.8 – 8.5 percent from its current levels (June 2020) and that residential property sales volume will remain elevated in the coming year.

The present growth in residential property prices is similar to the rise in prices that preceded the 2008 recession. Despite the similarities, the conditions that led to both cases of historic residential property value growth are quite different.

Data from our analysis shows that the median list price of residential properties in the Prefecture of Chania grew approximately 1.0 percent from last year and reached €240.000 in June 2021 for a two-bedroom apartment.

The median listing price of €240.000 is a new all-time high. Residential property sales prices in the second-largest city of Crete, grew an average of 2.4 percent compared to last year.

Chania Residential Market Trends & Facts

What a difference a pandemic like Covid-19 makes on the residential market of Crete, which advances in the opposite direction of what one would expect in a recession like the one we experienced here in Crete, Greece between 2008-2018?

More residential properties were sold in Crete during 2019 than in any year since 2012. An improving economy, a much more attractive investment framework and the strategic decision to reduce exposure to risk by investing in various assets across different sectors, industries, or even countries are fueling a residential housing boom.

How Should Buyers Prepare for the 2022 Chania Real Estate Market?

1. Stick to your initial budget.  Currently, you would need to raise your budget a bit higher to win the deal if you are interested in buying your dream home in Chania, Crete. 

2. Always conduct a property inspection. In the 2020’s frenzy, some buyers were dissatisfied and unhappy because they bought without due diligence. 

Almost sixteen months since the start of the pandemic and the residential property market in Crete continues to show resilience. Double-digit home appreciation, low mortgage rates, and the growth of the economic confidence index are things that could not have been forecast last summer.

In 2020, low mortgage rates, combined with an increase in working from home as a result of the pandemic, have spurred a surge in housing demand, particularly in the cities of Chania, Rethymnon, and Heraklion. Moreover, short-term rental platforms like Airbnb and low for-sale inventory drove the increase in residential property prices. Airbnb, in particular, has been the subject of intense criticism in the real estate market of Crete.

Namely, critics argue that short-term rental and home-sharing platforms like Airbnb not only raise the cost of living for local renters – while mainly benefitting local landlords and non-resident tourists – but also provide some property owners the dilemma to switch from supplying the market for long-term rentals or listing their properties for sale – in which investors and individual buyers are more likely to participate.

Last year proved how difficult it is to predict real estate. Many organizations, firms and experts, during the height of the coronavirus pandemic and the strict social distance measures, predicted a property-induced recession in 2021.

DISCOVER MORE AT ARENCOS: OUTLOOK OF CHANIA RESIDENTIAL MARKET 2022