Corfu real estate market benefiting from ΄golden wallets΄ of third country clients
CORFU. Significant drop in demand from European middle and low-income earners.
A decline of up to 15% is evident in the selling prices of medium and low-category properties, in contrast to luxury properties, which are selling up to 10% higher, due to demand mainly from clients from third countries, with high budgets.
This picture is reflected in the real estate market of Corfu, where a noticeable decrease in middle and low-income clients remains, with demand for properties in these categories showing a decline of up to 60%. The economic pressure experienced by Europeans is now also reflected in property transactions in our region for medium-range properties ranging from 250,000 to 600,000 Euros as well as for those below 250,000 Euros. Experienced real estate agents in Corfu point out state that these clients have decreased by 70%.
On the contrary, buyers with 'golden' wallets from America, Israel, Australia, Arab countries and China seem to have taken the lead, not hesitating to spend generous amounts to acquire the property of their choice. This includes luxurious villas and seaside plots, where their acquisition demands many zeros in the final bill.
This trend has been observed since 2022, with last year in particular giving cause for optimism. "The interest of buyers from third countries started in 2022 with a significantly increasing trend in 2023," Dionysis Pagalis, a real estate broker, told Enimerosi. "Conversely, we saw a decline of 70% in Europeans, due to the energy crisis, resulting in a significant limitation of middle and low-category clients."
Golden Visa and Turks
Moreover, for the first time, there is a strong interest in Corfu from a new market, Turkey, which until now has mainly focused on the Aegean. As Mr. Pagalis explains, interest is now turning towards our region, due to the easy access provided by the Egnatia Motorway. According to him, this is related to the possibility of obtaining the Golden Visa, which is a new type of residence permit offered to property owners and exclusively concerns citizens of third countries who have entered or reside legally in Greece.
"We can see a strong interest from Turkish buyers," Mr. Pagalis said. "They are mainly interested in properties within the town to settle with their families, as, with the golden visa, they have the right to entry and permanent residence in Greece, along with their family members. This residence permit is subject to renewal after a few years."
Rents soaring
He said that, at the same time, rental prices remain high. The problem of finding a property for rent in the town persists, and even if something is found, it quickly disappears due to the high demand that exists.
As an indication, rents within the town and its outskirts are as follows: Studios and one-bedroom apartments range from 350-450 Euros, two-bedroom apartments from 450-700 Euros, three-bedroom apartments from 650-1,200 Euros, and four-bedroom apartments from 800-1,500 Euros.
MARIA BAZDRIYIANNI
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