Rhodes is the main island in the Dodecanese archipelago and, along with Crete, one of the most important tourist regions in Greece. It is located in the Aegean Sea and famous for its ancient ruins, miles of beaches, and romantic bays with clear turquoise waters. Laying claim to over 3,000 hours of sunshine a year, Rhodes is one of the sunniest regions in the whole of Europe, attracting holidaymakers from all over the world, together with a host of international buyers of holiday properties.
“The demand for second homes on Rhodes remains high. Since the start of the pandemic, we have seen a growing trend towards year-round holiday properties. Many of our clients are spending increasing amounts of time in their second homes, and relocating their home offices from the often rainy northern Europe to the sunny south. Many are tending to prefer the security and privacy of their own private holiday residence,” says Georg Petras, CEO of Engel & Völkers Greece. In addition to holiday properties for private use, demand is also on the rise for properties as capital investments. In 2021 for example, almost 70 percent of Engel & Völkers clients already acquired a holiday home as a potential investment property. “Compared to other popular holiday destinations in the Mediterranean, real estate prices in Greece are still relatively moderate, thereby offering excellent prospects of good returns for buyers,” Georg Petras adds.
Lindos, Pefkos and Vlicha Bay rank among the highest priced areas on Rhodes. Lindos is located in the eastern part of the island and is a picturesque village with narrow cobbled streets and whitewashed houses in a typical Greek style, right on the cliffs overlooking the sea. It is approximately 45 kilometres from Rhodes Town, and offers an appealing mix of ancient and modern attractions. Lindos Bay, in particular, is one of the hotspots. In the centre of Lindos, buyers are gravitating towards a house of at least 150 square metres in size, in addition to classic captain’s houses with a courtyard. Prices for houses in prime locations can reach up to 7,000 euros per square metre, while beachfront villas command prices of up to 1.4 million euros.
Properties in the resort of Pefkos are equally desirable. Situated just a few kilometres from Lindos, it boasts idyllic stretches of coastline, as well as a good number of shops, restaurants and cafés. Wealthy families with children and the older generation, in particular, look for villas with substantial gardens and pools here. Houses in this area can fetch sales prices of up to 2.5 million euros. Properties in Vlicha Bay, a tranquil beach on the southeast coast of Rhodes, are also high in demand among prospective buyers. Prices for houses directly on the coast can reach from 1 million euros to 1.3 million euros.
Of all the Greek islands, one of the insider’s tips is the island of Symi in the north of the Dodecanese archipelago, located approximately 23 kilometres from Rhodes. It is well known for its traditional colourful stone houses with small balconies, stunning hiking trails and breathtaking views. Symi is the ideal getaway for those in search of an authentic and less touristy holiday home to spend time with family and friends. Prices for houses reach up to 1.3 million euros here, while apartments are sold for up to 4,500 euros per square metre.
Buyers and investors based abroad, especially those from Central Europe, are particularly interested in real estate on Rhodes and generally in South Aegean, which includes the Dodecanese Islands and the Cyclades. To an ever-greater extent, this group of buyers includes the older generation and digital nomads. They are drawn by the mild climate, the good accessibility, and infrastructure on the island. Approximately 90 percent of all property transactions can be attributed to international buyers. The majority of investors come from Germany, Austria, Switzerland, Belgium and France. More and more non-EU citizens are also investing in Greek real estate, thanks to the attractive incentives offered by the Greek government. “We are seeing a growing trend towards luxury properties with premium furnishings in the South Aegean islands. The majority of our clients are looking for well-appointed homes in like-new condition, with a contemporary, clean and bright architectural design,” Georg Petras reveals.
Engel & Völkers anticipates that property prices on Rhodes will continue to rise: “Greece is one of the most sought-after destinations for many holidaymakers. Once again we are expecting an influx of tourists, and thus potential buyers, this coming summer. Since the start of the pandemic, many holidaymakers who have traditionally stayed in hotels are increasingly looking to acquire a holiday residence of their own. The strong demand and increasing popularity of the region will lead to further price hikes in the future. Demand already exceeds supply in some places. Thus now is a good time to invest in real estate here,” says Georg Petras.
