Situated in the Aegean Sea, Crete is both the largest and the most rugged of the Greek islands. Located geographically where the European, Asian, and African continental plates meet, it runs 260 miles east to west and is 37 miles wide at its broadest point. It is comprised of the four regions of Lassithi, Chania, Rethymnon, and Heraklion, with the White Mountains forming a spine of 52 peaks. Closer to the coast are massive plateaus, as well as deep, water-carved gorges like the Gorge of Samaria. The island was home to one of the most prosperous European cultures of its time, the Mycenaean civilization, which lasted from 3,000 to 1,400 BC, and it still features a culture with colorful festivals and links to the past.
When it comes to Cretan real estate opportunities, one of the market drivers is the more than 3 million tourists who visit the island each year. Greek legislation stipulates that EU nationals, as well as those from non-EU countries, are able to purchase residential property in the island, which makes it a favored investment destination.
Situated on Crete’s west side, Chania preserves the rich history in an old town that features distinctive narrow streets and Venetian architecture, as well as waterfront promenades. This makes it an ideal spot for vacation rentals, both in the historic district and in new waterfront developments. Among the sought after addresses are Halepa, which features elegant mansions, and Nea Hora, which combines beaches and bustling tavernas, and has a local costal vibe. Platanias is an even busier beach area that has a nightlife scene, while Koum Kapi is a trendy district sought out by tourists and locals in search of boutiques, cafes, and bars.
Heraklion is the largest city and capital of the island and houses the Bronze Age archaeological site of Knossos, one of the most significant remnants of the Minoan age. Also featuring the University of Crete, it offers a major port, airport, and hospitals. As it combines tourism with a thriving maritime and agricultural economy, Heraklion has a more diversified real estate landscape that includes offices and commercial buildings, as well as apartments and vacation rentals.
Rethymno offers a smaller Venetian-era port and historic center and is known for the massive fortress Fortezza, which offers sweeping views of the city and Agean Sea. An annual highlight, the Renaissance Festival, attracts thousands of visitors and provides a high water mark for vacation property owners. Beyond tourism, the city is known for its thriving wine and olive oil industries.
When considering luxury coastal real estate, the northeastern enclaves of Elounda and Agios Nikolaos are prime investment destinations. Tranquil and well appointed, these locales feature high-end villas and picturesque harbors and beaches.
When it comes to Crete’s real estate demographics, some 30 percent of buyers are from overseas. The most common nationalities are British, German, Swedish, Norwegian, and French. Luxury properties have driven much of the growth, with average prices increasing by 35 percent from 2000 to 2010. While growth slowed with the Great Recession, by 2015 a sustained recovery had taken hold and prices rose by about 10 percent over the next five years. Among the factors driving market expansion are low property taxes, stable politics, and the option of converting villas into revenue generating vacation rentals. Non-EU citizens can also take advantage of the Golden Visa program. Offered by the government of Greece, this provides residency permits to those who invest at least $270,000 in real estate.
