The Effect of the Global Downturn on Property Sales in Crete

It has been a strange year for property sales in the lovely island of Crete – egged on by the “panic media” many people who had already set their hearts on living in a mild climate with the chance to pay low heating and lighting charges, enjoy organic vegetables and a laid back, kinder lifestyle than that in the UK allowed themselves originally to opt out of purchasing their dream property surrounded by sandy beaches, blue skies and endless mountains and greenery. After initial looks they went back to the UK and decided to put it off. As the year progressed and the Government managed to give us more and more mismanagement and gloomy news the same people returned to try and buy the properties they had viewed and liked, only to find they had been snapped up by a braver person.

Northern Europeans are still buying property in Crete, Crete still offers the same temptations it offered before the credit crunch in fact in some ways even more despite the weakness of the Pound against the Euro because what is on offer in Crete is unobtainable in UK right now. Cretian properties at realistic prices, sun, sea, sand, clean air and many entertainments for free and a laid back, café society of friendly people. Good hospitals – free – with no queues in A and E – gorgeous locally grown foods – many hours of daylight and sunlight, and most of all space and cleanliness and a very very low crime rate.

Another aspect of living abroad has now come onto the horizon – our present government is borrowing so much money that future tax payers will have to pay the cost of this. As EU citizens living in any EU country it is possible to choose where you pay your tax, so many people buying and living in Crete in the future are likely to opt for the Greek tax system to avoid paying the high taxes sure to come along either as Direct or “cloaked” taxes within a very few years.

The kind of person wanting to buy property in Crete has reverted to the kind of buyers in the early nineties, that is people who love Crete, we are no longer getting the investors who thought they saw a chance of making a quick buck by buying off plan and selling on at a profit, clients buying now are stretching themselves to buy the house of their dreams in so far as they can afford it and taking into account good bus services, good facilities, accessibility to airport (for visiting friends) and nearness to beaches.

There is a lot of interested from the Scandinavian countries like Finland and the French people – normally only interested in renting – are also quite strong in the market.

As we draw towards the end of 2008 nothing has changed essentially in Crete. Certainly there are no prolific sales going on, but the fact remains that people living in the UK are finding it an attractive idea to move to an EU country where the climate is kind, the sandy beaches are relatively empty and the quality of life is still very high.

Some feel confident that 2009 will see a complete turn around in sales and that many people completely at odds with the Government of the British Isles, the lack of quality of life, and the high crime rate will turn their attention to a lifestyle with family values, good climate and a low crime rate. There are still many people who want to make their home on an island in the sun.



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