urn:www-rethymnoblogs-gr:feeds:atomRethymno Blogs » Meno CreteRethymno Blogs » Meno Crete2010-09-07T22:00:14-04:00http://www.rethymnoblogs.gr/Meno_Crete/2008/09/19/Why_Are_House_Prices_Still_Going_Up_In_Crete_meno creteMeno Crete: Why Are House Prices Still Going Up In Crete?2008-09-19T17:20:00-04:002008-09-19T17:20:00-04:00 With so many negative factors affecting the property market in Crete such as escalating fuel prices resulting in the increase in the cost of getting to the island, interest rate increases and even the strength of the Euro against other currencies, especially the British pound – it seems incredible that house prices in Crete continue to rise, but rise they do! Despite local and overseas estate agents all recording a significant decline in the number of people actively enquiring about properties on Crete, which is the largest of the Greek islands, there has been no reaction to this from the Cretan house market itself. With many potential property buyers biding their time in the hope that interest rates and prices will fall it seems strange that there is no sign that at least the latter should happen in the near future. There are many reasons for this. Crete is still very much an undiscovered property market. Greece’s building laws are very strict and, perhaps in the light of such problems as the “land grab” situation in Spain, they are generally strictly enforced. Developers in some areas of Crete such as Rethymnon even claim that the strict building laws are stifling reasonable growth of the local economy. What this does mean however, is that even in today’s deflated property market there isn’t such a surplus of new build homes and villas in Crete as there is in other markets such as Bulgaria - building surpluses which have inevitably forced house prices down. Legally buildable land on Crete is a precious commodity sold at high prices - as Mark Twain once said “Buy land, they’re not making it anymore”. Another factor helping to sustain the gradual capital growth of Cretan property is the fact that house prices in Crete are a closer reflection of actual building costs. Whereas in many countries the selling price of a house has been dictated by how much someone was willing to pay for it, or more specifically, how much someone was able to borrow to pay for it, Crete’s house market has not seen such a credit fuelled bubble. Consequently more realistic factors such as the rise in fuel prices leading to the increase in the cost of construction are what have inevitably boosted house prices on Crete. To understand how house prices in Crete can continue to increase even in today’s market it is necessary to understand some of the changes that have taken place in Greece in recent years. Yes, of course the Olympics in 2004 gave Greece and consequently its house market a boost, but that has had much less of an effect than the introduction of 19% VAT on new buildings as of the 1st of January 2006 and the government’s increases in the “Objective Value” of property in Greece. The “Objective Value” is a deemed value determined according to a formula prescribed by the tax authorities and is regularly revised. These values do not coincide with book or market value, and vary between different areas. Generally speaking they are significantly lower than the actual market value of the property. The "objective" value of the property is the value used when calculating the amount of tax payable with regard to the property so any hike in objective value increases the taxes payable. The increases brought on by the rise in objective values have more often than not been absorbed by the construction companies in Crete, but the 19% VAT shock waves that were felt by construction companies all over Greece as of the 1st of January 2006 have been transferred to their clients as a subsequent rise in the cost of homes in Crete and Greece as a whole. The full impact of this change has only been felt relatively recently for many construction companies. Although the financial sector is not such a large segment of Greece’s economy, which is why it is not so heavily impacted by the world economic crisis, many people in the real estate industry believe that the current rising cost of property in Crete cannot be maintained. Indeed most estate agents, (not to mention buyers) would welcome a reduction in house prices as a way of attracting cautious property purchasers back. However, construction companies in Crete seem very reluctant to make such a move. With the world economic clouds gathering overhead it is believed that Crete will be able to weather the storm! ]]>http://www.rethymnoblogs.gr/feed.php?channel=89&y=2008&m=08&d=28&iid=322meno creteMeno Crete: Action Constructing is pleased to announce the ...2008-08-28T10:53:00-04:002008-08-28T10:53:00-04:00Purchasers can choose from luxury two bedroom apartments, two storey maisonettes and 2 or 3 bedroom villas with prices starting from £112,000. Facilities include swimming pools, extensive garden and paved areas as well as private parking spaces. About Action Constructing: Action Constructing specialises in creating luxury property in Crete for discerning clients. The company has been operating since 1998 and has to date successfully built and sold many beautiful properties in Crete to satisfied clients looking for a secure investment and a quality guaranteed product. Action Constructing continues to offer something unique to its customers through its strategy of identifying desirable locations, using attractive architecture and some of the finest quality finishes, delivering idyllic buildings which are clearly distinguishable from their contemporaries. All of Action Constructing’s developments are located in the provinces of Chania and Rethymnon on the island of Crete which is recognised as one of the worlds foremost tourist destinations as well as an excellent choice for retirement and year round living. To date Action Constructing has successfully designed and built many luxury bespoke villas in these areas as well as an exclusive off-plan project in Agia Triada, Rethymnon now 80% sold out. The company’s commitment to its customer-driven strategy is nowhere more evident than in its latest project Loutra Haven. Satisfying the demand for proximity to the beach in a rural setting typical to Crete while at the same time affording easy access to traditional local shops and amenities. ]]>http://www.rethymnoblogs.gr/Meno_Crete/2008/08/08/Rethymnon_Summer_Arts_Festivalmeno creteMeno Crete: Rethymnon Summer Arts Festival2008-08-08T16:14:00-04:002008-08-08T16:14:00-04:00 Exhibitions, theatre performances and concerts are taking place at several locations around Rethymnon but are centred specifically in the Venetian Fortress. Printed copies of the program are available from the kiosk outside the Rethymnon Town Hall. ADVANCE BOOKING AND INFORMATION - Town Hall From Monday to Saturday 09:00 -13:30 and at the Erofili Theatre in the Venetian Fortress one hour prior to each performance. Tel. 28310 28101
08.08 Theatre - Theatre Group VIVI performs "The Bee" by Nikos Kazantzakis.Erofili Theatre, Fortezza - Starts 21.30hrsTickets: €15 - €8 for students
18.08 Theatre - Cultural Association Adele-Agia Paraskevi performs "The Great Nobleman"Erofili Theatre, Fortezza - Starts 21.30hrsTickets: €12
19.08 Theatre - Attiki Scene performs "Nepheles"Erofili Theatre, Fortezza - Starts 21.30hrsTickets: €20 - €17 for students
20.08 Music and Dance - Meeting in the Castle - with Association Megalakai and George Manolioudis & Giorgis ChalkiadakisErofili Theatre, Fortezza - Starts 21.30hrsTickets: €12
22.08 Theatre - Theatre Group Cultural Expression performs "The Doctor in Spite of Himself" by MoliereErofili Theatre, Fortezza - Starts 21.30hrsTickets: €20 - €15 for students
23.08 Musical - Thespis and Theatre of Volos perform "Blood Brothers" by Willy RussellErofili Theatre, Fortezza - Starts 21.30hrsTickets: €24 - €17 for students
25.08 Theatre - Magikes Svoures Theatre Company performs "The Wooden Doll" - a children's theatre performance.Erofili Theatre, Fortezza - Starts 21.30hrsTickets: €13
27.08 Revue - Theatrical Workshop Avlaia performs "Cabaret 'The World'"Erofili Theatre, Fortezza - Starts 21.30hrsTickets: €15 - €10 for students
29.08 Theatre - Theatre Athinaion performs "Tartuffe" by MoliereErofili Theatre, Fortezza - Starts 21.30hrsTickets: €22 - €17 for students
01.09 Theatre - Theatre Scene Heraklio performs "Vrontakides & Fourtounakides" by Lakis MichailidisErofili Theatre, Fortezza - Starts 21.30hrsTickets: €12
Exhibitions 25.07-02.08 - Stelios Baklavas presents "Body Talk", a photographic exhibition. 05.08-18.08 - Konstantinos Polioudakis presents "Pictures of Words and Silence", paintings and audio-visual exhibits. 11.09-11.10 - Artists of the Ukraine present "Colour & Movement"
The exhibitions take place in the Artillery Hall and the Ibrahim Han Mosque; both are in the grounds of the Fortezza. Entrance to the exhibitions is free. ]]>http://www.rethymnoblogs.gr/Meno_Crete/2008/08/07/Are_house_prices_going_down_in_Crete_meno creteMeno Crete: Are house prices going down in Crete?2008-08-07T13:19:00-04:002008-08-07T13:19:00-04:00 Without doubt experts involved in the Cretan construction business know that they will be affected by the current crisis, but not as deeply as some other locations. Most experts predict that, although the extraordinarily healthy capital appreciation seen in the past few years of 15% or more in some cases will slow down, the prices of houses on Crete will continue to see growth. This is due to several factors including the strict building regulations causing the scarcity of attractive, buildable land and consequently its continual rise in value.
It has also been suggested that property prices in Crete and Greece generally continue to rise due to a wiser approach by mortgage banks in the country. Traditionally lending in Crete has been tighter than in the UK. Until relatively recently it was almost impossible for prospective house buyers in Crete to secure a mortgage which means a property bubble fuelled by extensive lending was not created in Crete as opposed to some other countries. In the last quarter of 2007, the average Greek household debt was 45.3% of the GDP, compared to 97% in the UK. Now of course thankfully mortgages are accessible to residents and non-residents alike, but Greek banks have never been drawn into the somewhat irresponsible lending seen in other countries. While mortgages in the UK are becoming scarcer Greek banks are still offering non-resident purchasers interested in buying a home in Crete attractive mortgage packages. Greek banks continue to help a lot of house buyers realise the dream of owning a property in Crete despite the weaker pound. Subject to status and the type of real estate to be purchased some Greek banks can offer rates as low as 4.20% fixed rate for 3 years.
Overall, it seems that Crete property provides an enduring investment for those wishing to survive the credit crunch and now that mortgages in Crete have become more readily available this can only increase the demand by people looking to buy a house on Crete. Add to that the wonderful Cretan cuisine, enviable climate, friendly local people and awe-inspiring natural beauty and surely Crete will remain a major property investor magnet for many years to come! ]]>
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