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01/06/2009

Crete Real Estate: Let the bargain period begin!

 

Citibank recently published a report based on research among the wealthiest people in the world. The sample population studied, reported that property is their top priority in their investment agendas. Specifically residential properties are highly appreciated since they are something easier to understand. The report notes characteristically that "Even the wealthy hold the view that you should only invest in things that you understand".

This strong belief in the value of property is shared by most Greeks as well and is one of the reasons why properties have not greatly decreased in value in Crete. Local demand for houses and apartments has helped in sustaining the Greek real estate market and protected it from a potential crash.

The simplest of price mechanisms is supply and demand. Ample supply and weak demand: lower prices. Insufficient supply and strong demand: higher prices. People that sell land look at it in that context. Supply is obviously limited. "They're not making it anymore".

"Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full and managed with reasonable care, it is about the safest investment in the world". Franklin D. Roosevelt (1882-1945). 

So where are the bargains? International analysts generally agree that 2009 is the year to find them since 2010 seems to be the year that the world economy will stabilize along with real estate values and prices. European officials already talked of an expected interest increase in 2010. Focusing in Crete, we can confirm that there are options available that were not available 2 years ago. For example buying a key ready house of 100m2 that was constructed within the past 10 months, on a 1000m2 plot enjoying sea views and being only 2 minutes from the nearest beach for just 170.000 Euros is now possible.

However, good value properties fall within the category of "insufficient or limited supply". Most builders are reluctant in reducing or negotiating prices - even the ones facing financial difficulties. Additionally the Greek government announced in May of 2009 financial motives for home buyers which has strengthen the demand in the country.

One could of course wait in order to find the lower priced bargain since no one can claim that the world financial crisis is over. But waiting for the bottom price to appear comes with the risk of missing out on the best opportunity. Simply, because it will be snapped up by someone prepared to take the risk.

Bottom line, properties still remain an attractive long-term investment, offering a sense of security that stock markets cannot provide in today's economic environment. Even cash deposits look out of favor,

as investors as well as everybody else, question the safety of their money and banks slash interest rates. And now low prices are available on the island of Crete, which has all the qualities that ensure that your purchase will offer you quality of life when you use it as well as a valuable asset in years to come.

* Andreas Batakis has lived in Greece, Ireland and Cyprus, acquiring a Business Administration Degree in Greece, an International Marketing Diploma and a Bachelor of Science in Human Resource Management in Ireland. He is also a member of the UK based Chartered Institute of Personnel and Development and has gained vast experience in the property market. For more information please contact: info@talosproperties.com, http://www.talorproperties.com/

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