ARENCORES MAGAZINE Issue |No. 8
This issue of ARENCORES Magazine comes at a time of significant economic and societal disruption because of the pandemic crisis. Much has been written about how Covid-19 will reshape travel, tourism and retail in the island of Crete. Less has been said about what it will mean for the local real estate market. How the uncertainties associated with the pandemic will epitomize the excess that may lead to a deeper recession? How the local and foreign investors think about of what is still to come – namely a long period of falling property prices? At the moment, the extent to which this health crisis will affect the real estate market is unknown.
This issue of ARENCORES Magazine comes at a time of significant economic and societal disruption because of the pandemic crisis. Much has been written about how Covid-19 will reshape travel, tourism and retail in the island of Crete. Less has been said about what it will mean for the local real estate market.
How the uncertainties associated with the pandemic will epitomize the excess that may lead to a deeper recession? How the local and foreign investors think about of what is still to come – namely a long period of falling property prices? At the moment, the extent to which this health crisis will affect the real estate market is unknown.
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ARENCORES
A C H A N I A R E A L E S T A T E M A R K E T M A G A Z I N E
JUNE
2020
ISSUE_8
MAGAZINE
A P U B L I C A T I O N D E D I C A T E D T O P R O P E R T Y B U Y E R S & I N V E S T O R S
HOW CONSTRUTION SECTOR
IN CHANIA HAS CHANGED
SINCE CORONAVIRUS STRUCK
COMMERCIAL REAL ESTATE IN
CRETE MUST SEE CORONAVI-
RUS CRISIS AS A CHANCE TO
ADAPT AND RENEW
PROPERTY INVESTORS VIEW
DURING THE PANDEMIC
WHAT ARE YOUR TOP FOUR
COCERNS?
GREECE’S CORONAVIRUS
MANAGEMENT SUCCESS
IMPRESS FOREIGN
REAL ESTATE INVESTORS
REAL ESTATE RECESSION?
NOT SO FAST AND NOT FOR ALL
PROPERTY TYPES
HAVE GOLDEN VISA PROGRAMS
LOST THEIR POPULARITY?
At ARENCORES & Chania Real Estate
we don’t just sell properties.
We want to see real meaning and
problem solving that resonates.
MARIA GKIKA
MANAGING DIRECTOR - FOUNDER
This issue of ARENCORES Magazine comes at a time of significant economic and societal disruption because of
the pandemic crisis. Much has been written about how Covid-19 will reshape travel, tourism and retail in the island
of Crete. Less has been said about what it will mean for the local real estate market. How the uncertainties associated
with the pandemic will epitomize the excess that may lead to a deeper recession? How the local and foreign
investors think about of what is still to come - namely a long period of falling property prices? At the moment, the
extent to which this health crisis will affect the real estate market is unknown. Nonetheless, real estate market is a
dynamic sector and in Chania the sector is still very competitive but there may be more to it than meets the eye.
According to a recent survey by ARENCORES and Chania Real Estate, property buyers shouldn’t expect any big
discounts for residential and commercial properties in Crete, Greece in the coming months. Just because there’s
a large number of people filing for unemployment doesn’t mean we’re going to have the same foreclosure crisis in
the property market that we saw between 2009-2015. Indeed, our survey found that the majority of our property
owners (89%) have not reduced listing prices to attract buyers.
Meanwhile, property sellers must value their real estate assets in a reliable and pragmatic way that should represent
a fair price. As real estate and construction professionals we have already seen that properties are still selling
and their owners are selling for full list price when a property is priced fairly. However, fair value differs depending
on willingness of the property owners to accept the pragmatic value of their real estate assets and the methodology
or the procedures of the appraisal.
During this difficult period of time for our societies, we need to rethink both real estate investment strategies, property
construction and management. Chania is an attractive target market for foreign investors. There is a plethora
of evidences confirming that capital movements and investment financing follow the city attractiveness. Such areas
- like Chania - suggesting a “ low risk market” and accelerate the return of investment potential (ROI).
ARENCORES CHANIA REAL
ESTATE MAGAZINE
i n d e x
All investment and or financial opinions expressed within ARENCORES MAGAZINE are based on the personal
research and experience of ARENCORES’ editorial team, as well as on surveys conducted within or associated with
the Greek real estate sector. The content of ARENCORES MAGAZINE is intended to be used, and must be used, for
informational and educational purposes only. You must take independent financial and/or any other professional
advice from an expert and/or a professional, and/or you must make independent research and verify any information
that you find within ARENCORES MAGAZINE and wish to rely upon, whether for the purpose of making an
investment decision or otherwise.
Although best efforts are made to ensure that all information is accurate and up to date, unintended errors and/
or misprints and/or omissions may occur. The producer of ARENCORES MAGAZINE shall not be held responsible
for any such errors and/or misprints and/or omissions. The producer of ARENCORES MAGAZINE shall not, in any
circumstances (a) be legally bound as a result of any information contained in this guide or (b) be held responsible
for any losses or liabilities that may arise in respect of such information or for any use of such information by any
such person.
IMPACT ON THE CONSTRUC-
TION ACTIVITY IN CRETE
HOW CONSTRUTION SECTOR
IN CHANIA HAS CHANGED
SINCE CORONAVIRUS STRUCK
PROPERTY INVESTORS VIEW
DURING THE PANDEMIC:
WHAT ARE YOUR TOP FOUR
COCERNS?
The significantly large drop in bookings and
We examine a real, live project to outline
As we move forward into this uncharted
decline of interest for properties and new
the impact that the COVID-19 pandemic is
territory, the responses to the crisis should
+
IMPACT ON THE CONSTRUCTION ACTIVITY IN CRETE
6
commercial and residential projects are just
two parameters behind the current crisis, the
having on the construction activity in Chania,
Crete.
be founded on the basis that will establish
systemic integrity and economic viability.
+
HOW CONSTRUTION SECTOR IN CHANIA HAS CHANGED
SINCE CORONAVIRUS STRUCK
10
other and most crucial being the ongoing
uncertainty.
+
PROPERTY INVESTORS VIEW DURING THE PANDEMIC: WHAT
ARE YOUR TOP FOUR COCERNS?
12
+
PANDEMIC COULD MEAN OPPORTUNITY FOR REAL ESTATE
INVESTORS
15
+
+
SELECTED PROPERTIES FOR SALE IN CHANIA, CRETE 18
CRETAN CHEESE MAKING IN THE WHITE MOUNTAINS 24
+
HAVE GOLDEN VISA PROGRAMS LOST THEIR POPULARITY? 28
+
COMMERCIAL REAL ESTATE IN CRETE MUST SEE CORONAVI-
30
RUS CRISIS AS A CHANCE TO ADAPT AND RENEW
+
REAL ESTATE RECESSION? NOT SO FAST AND NOT FOR ALL
35
PROPERTY TYPES
+ GREECE’S CORONAVIRUS MANAGEMENT SUCCESS IMPRESS
36
FOREIGN REAL ESTATE INVESTORS
PANDEMIC COULD MEAN OP-
PORTUNITY FOR REAL ESTATE
INVESTORS
One of the most effective real estate investing
strategies during these times is searching
and identifying properties with a great
chance for appreciation over the long term
CRETAN CHEESE MAKING IN
THE WHITE MOUNTAINS
Greek mythology describes that the sky and
thunder god Zeus, the king of the gods of
Mount Olympus was raised in a cave deep
inside the Cretan mountains having as com-
COMMERCIAL REAL ESTATE IN
CRETE MUST SEE CORONAVI-
RUS CRISIS AS A CHANCE TO
ADAPT AND RENEW
In a matter of weeks, the lives of so many
have changed in ways they had never
imagined some months ago. In Greece and
globally, people can no longer meet, work,
and with high Return of Investment potential
panion a divine goat named Amalthea.
eat, shop, and socialize as they used to.
(ROI.
ARENCORES CHANIA REAL
ARENCORES CHANIA REAL
4
ESTATE MAGAZINE
ESTATE MAGAZINE
5
IMAGE SOURCE: UNSPLASH
The significantly large drop in bookings and
decline of interest for properties and new
commercial and residential projects are just
two parameters behind the current crisis, the
other and most crucial being the ongoing uncertainty.
The plunge is putting Crete’s tourism industry, real estate
investments and construction activity at risk. Moreover, the
health and safety risks of COVID-19 vary from project to project
and to comply with the new health and safety precautions
requires sinergistic relations with medical, scientific and government
guidelines to provide a safe working environment.
IMPACT ON THE
CONSTRUCTION
ACTIVITY IN
CRETE
IMAGE SOURCE: UNSPLASH
ARENCORES CHANIA REAL
6 ESTATE MAGAZINE
ARENCORES CHANIA REAL
7
ESTATE MAGAZINE
The pandemic has dramatically impacted a number
of sectors in both at home and around the world. The
coronavirus pandemic is striking Crete where it hurts:
in the tourism, construction and real estate sector.
The government of Kiriakos Mitsotakis under the guidance
of an experienced team of epidemiologists and
medical scientists has successfully implemented some
of the most proactively restrictive measures in Europe,
which seem to be working.
To date Greece counts just 144 deaths since the start of
the outbreak. By contrast, Switzerland, which has a similar
population, just below 9 million, has recorded 1,467
deaths and Belgium with a population of 10 million has
recorder 7,765 deaths. Cretans are sticking inside and
for three weeks in a row no case of the virus has been
reported on the entire island.
The hospitality sector, along with travel, tourism, real
estate and construction, has been hit by Covid-19.
With COVID-19 and its deleterious effects the island of
Crete hold its breath. Decreases in bookings and high
cancellation volumes are the direct effects of the virus.
The significantly large drop in bookings and decline of
interest for properties andnew commercial and residential
projects are just two parameters behind the
current crisis, the other and most crucial being the ongoing
uncertainty. And it’s not good news for a state
that welcomes more more than 1,580,000 people almost
every year.
As much a tragedy as the coronavirus is, most big cities
in Greece are dealing with one problem, Chania is dealing
with two because we’re dealing with coronavirus
and the dramatic drop in the construction activity - that
according to several research and surveys - would be
far more painful than the recession that we faced before
ten years.
Although activity in the construction sector will likely
continue in Chania, Crete, some projects are expected
to halt soon given various factors including bottlenecks
on the supply chain and the termination or cancellation
of contracts from the owners to control expenses – especially
for small and medium residential projects.
Moreover, many new projects at the design and planning
phase have even stopped, usually with the intention
to resume work at a later date. For large-scale
infrastructure projects across Crete, we have seen a
number of redundancies and cost cutting measures
being implemented from the investors because of the
unprecedented economic events and market volatility.
Especially now, it is clear that our sector need to have a
clear and synergistic engagement strategy to begin dialogue
with investors, suppliers and banks to deal with
the crisis and its future impacts on our business and
economy as a holistic approach to predict and manage
the systemic threats to our common goals and objectives.
IMAGE SOURCE: UNSPLASH
‘‘At the time of writing, the majority of our construction sites
in Akrotiri, Kisamos, and Apokoronas have maintained the
status quo with low impact so far. We have not experienced
of any significant defaults on progress payments or cancellation
of contracts in progress so far.’
ARENCORES CHANIA REAL
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ARENCORES CHANIA REAL
ESTATE MAGAZINE
9
ESTATE MAGAZINE
HOW CONSTRUTION
SECTOR IN CHANIA
HAS CHANGED SINCE
CORONAVIRUS
STRUCK
We examine a real, live project to outline the impact that the COVID-19
pandemic is having on the construction activity in Chania, Crete.
Unlike sectors like architectural design, manufacturing,
IT or financial services, the sector of construction and
its ancillary engineering segment require the physical
presence of workforce – both skilled and less skilled – in
different phases of the project life-cycle.
Civil engineers, mechanical engineers, energy engineers,
contractors and workers are just some of the
most frequent people in the workforce required in a
construction project.
Unfortunately, the significantly low integration of novel
technologies and applications along with the absence
of state-ofthe art digitalization and automation tools in
such projects is a critical barrier.
These impacts include, among others, schedule delays,
workforce availability, equipment and material disruptions,
reduced productivity due to on site health and
safety measures (e.g., social distancing, etc.), permit delays
and cash flow shortages.
Project Status: Advanced Construction Stage
Project Location: Akrotiri, Chania, Crete, Greece
the construction site. Many of them may have returned
to their villages or are planning to do so.
Moreover, contractors are also not keen on pushing
them either because the safety and health of all those
who work in construction remains the top priority for all
the parties involved. Most of the construction sites are
running at just half of our usual run rate as fear about
the infection is keeping workers’ attendance at less than
60 percent. ARENCOS provides all the necessary support
to workers, from undertaking precautionary measures
such as avoiding group formation, provides face
masks etc.
Supply Chain Status: Some of the required materials
to complete the project are being sourced from overseas
(Germany, China), which are either in manufacturing
or dispatch phase. The time of delivery of such materials
should also significantly affect the time of project
completion.
Contractual Impact: Some of the sellers and material
suppliers may invoke claims due to COVID-19 and this
will inevitably lead to contractors’ claims for additional
time and costs.
Project Cost: 500.000 euro
Investor’s Origin: EU
Labour Deployment: Over 30 workers with over 10
different pieces of heavy equipment or heavy machinery.
Labor deployment is the ability to use the correct
amount of staff, in the right place, at the right time. It allows
you to bring all of your resources into effective action.
This means you get the correct staff for the job and
you have enough people to make the most profit during
peak times and all hours.
Project Schedule Impact: Prognosis for 2 months delay
under some pessimistic scenarios. The interconnectedness
and synergistic nature of a construction project
along with the bottleneck phenomena in the supply
chain and physical distancing of the workforce should
also affect the time schedule of the project.
Any slowdown across the project life-cycle due to the
pandemic or even the limited sources for financing from
the side of the project owner could cause further delays
or changes.
IMAGE SOURCE: UNSPLASH
Labour Status: Because of the social distance measures
more than 40 per cent of the construction workers
required to complete the project are staying away from
Cost Impact: No impact on the total project cost. The
cost remains the same as it was initially agreed between
the client and ARENCOS.
ARENCORES CHANIA REAL
ARENCORES CHANIA REAL
10 ESTATE MAGAZINE
11
ESTATE MAGAZINE
WHAT
ARE YOUR
TOP FOUR
COCERNS?
For Greece, unlike the 2009 financial
crisis which was caused by a
dramatic breakdown in the banking
and credit system of the country,
this unprecedented and multidirectional
crisis is instead a result of
a global disruption in commercial
activity.
As we move forward into this uncharted
territory, the responses to
the crisis should be founded on the
basis that will establish systemic integrity
and economic viability.
the construction sector of Crete.
Greece.
For the initial survey analysis, we
shared responses from our contractors
and subcontractors in our
first brief. In the next iteration, we
released the second brief, comparing
the project managers response
from the first brief with the new
survey responses from investors
and stakeholders.
A SURVEY
DEDICATED
TO CHANIA
PROJECT
OWNERS,
REAL ESTATE
INVESTORS
CONTRAC-
TORS AND
CONSTRUC-
TION COM-
PANIES.
IMAGE SOURCE: UNSPLASH
PROPERTY
INVESTORS
VIEW DURING
THE PANDEMIC
The COVID-19 pandemic – and its
associated risks and uncertainties –
is a serious threat not only to global
health, but to our local societies, our
economies and our investments.
How to deal with a situation like this, a
massive outbreak, would catch anyone
off guard but through our synergistic relations,
open dialogue and a communal
framework about our investment continual
operations and risk management, I feel
as though I’m better suited to deal with a
similar situation if it were to ever happen.
Mark Lewis - Property Investor in Chania, Crete, Greece
We feel it’s important to ask project
managers, investors, and stakeholders
what are the top concerns
about the pandemic and its impacts
on our sector. We surveyed nearly
50 project managers, contractors
and investors currently involved in
ARENCORES CHANIA REAL
ESTATE MAGAZINE
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ESTATE MAGAZINE
12 13
SURVEY OUTLINES
22%
17%
Yes, we are seeing severe disruptions
No disruptions
Yes, but only small in scale disruptions
14%
47%
No, but we anticipate some extend of disruptions for the following months
No
10%
12%
Yes, one or two projects wel be cancelled
Yes, but we will continue our investments after the end of the pandemic
ARE YOU EXPERIENCING ANY
DISRUPTION IN THE SUPPLY
OF YOUR MATERIALS OR SER-
VICES FOR YOUR CURRENT
PROJECTS IN CRETE?
Some construction projects in Crete have
been delayed, and a small number of projects
on the tourism sector canceled, as a result
of the impacts of COVID-19. In addition, the
majority of the respondents (53%) in this
survey indicated possible supply chain bottlenecks
of equipment and materials.
ARE YOU EXPERIENCING ANY
DISRUPTION IN THE SUPPLY
OF YOUR MATERIALS OR SER-
VICES FOR YOUR CURRENT
PROJECTS IN CRETE?
47% of the survey respondents appear
cautiously optimistic saying that no critical
Yes, we are seeing severe disruptions
supply chain disruptions are on the horizon.
No disruptions
The high level of optimism of respondents
78% Yes, but only small in scale in disruptions
Crete confirmed by the result that 78%
stated that they will continue to do a ‘business
as
No, but we anticipate some extend of disruptions for the following months
usual’.
THE CURRENT
CORONAVIRUS
SITUATION
HAS A LOT OF
BUYERS,
SELLERS AND
REAL-ESTATE
AGENTS WOR-
RIED ABOUT
WHAT WILL
TRANSPIRE IN
THE PROPER-
TY MARKET IN
THE
COMING
MONTHS AND
YEARS.
Less property will be coming onto
the market in the coming months.
In a downturned market, property
owners who are not desperate to
sell have no incentive to list their
properties.
They will get less than they could
have a few months ago, and the
best thing to do is to hold the property
for a few more months or years
and sell it once the market slightly
recovers.
PANDEMIC
Sometimes, investing during a recession
can be the best time to buy
a property. Moreover, in a small real
estate market like Chania property
market, Crete there isn’t as much
COULD MEAN
OPPORTUNITY
FOR REAL ESTATE
INVESTORS
and with high Return of Investment
potential (ROI).
However, one may wonder: Is buying
a property during a worldwide
pandemic a smart decision? For
some residential and commercial
properties in Chania, Crete interest
rates are low this period of time.
BUT have we hit bottom yet?
Because of the nature of the uncertainty
that this crisis produces,
it would be safe to say that we just
don’t know. Some areas are seeing
medium to high property requests
today while others have slowed
down during these volatile times.
Yet, it’s important to note that single-family
rentals in the area of Akrotiri
and Chania town appear to
generate positive signs to investors.
That’s primarily because students
of the Technical University of Crete
are always going to need a place to
live, even during times of recession.
Yet, another reason so many investors
consider real estate investment
in Chania town to be a safe haven,
is the tourism industry which is
expected to grow significantly and
may enjoy the biggest rally ever
when the pandemic is over.
The COVID-19 pandemic and its associated effect on the economic
activity is presenting a plethora of challenges to the engineering and
construction sector — challenges that could deepen depending on the
severity and duration of the crisis in Greece and globally.
Overall, impacts of the Covid-19 on the construction
activity in Crete are tough to judge
thus far; mostly investors, project managers
and contractors are anticipating no dramatic
slowdowns and project pause.
competition from other property
buyers or investors.
One of the most effective real estate
investing strategies during
these times is searching and identifying
properties with a great chance
A wise strategy that can captures
the essence of many of the usefullysystematic
ways to acquire a property
is to look for the most dominant
market trends of a particular
area and invest there.
for appreciation over the long term
ARENCORES CHANIA REAL
ARENCORES CHANIA REAL
14 ESTATE MAGAZINE
15
ESTATE MAGAZINE
ARENCOS
Therefore, the question arises
which housing market indicators
should we be paying attention to
during a recession?
ARCHITECTURE
ENGINEERING AND
CONSTRUCTION
SERVICES
ARENCORES real estate development
and property management
firm prioritizes the most significant
indicators of the commercial and
residential real estate market of
Chania and Rethymon and facilitates
your decision making by providing
you reliable and trustworthy
information for the area of your interest.
26 Stratigou Tzanakaki Street
73134, Chania, Crete, Greece
T: +30 2821112777
W:www.arencos.com
E: info@arencos.com
An example would be Chania Old
Town, an area already experiencing
strong demand for properties
from Israelis, Germans, Americans
and Russians. The properties in this
area are still very expensive – even
today, so it’s difficult for most people
to buy real estate in these areas
– especially properties that cash
flows.
However, some properties in Platanias,
Apokoronas and Kissamos
may experience a small dip, but will
likely be quick to recover.
IMAGE SOURCE: UNSPLASH
ARENCORES CHANIA REAL
ARENCORES CHANIA REAL
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ESTATE MAGAZINE
ESTATE MAGAZINE
KALATHAS WATERFRONT
BUILDING PLOT FOR SALE
450.000 EURO
PALAIOCHORA INVESTMENT
PLOT FOR SALE
2.600.000 EURO
Property Type: Building Plot
Tenure: Freehold
Plot Size: 1218.00 m²
Builds: >400.00 m²
Views: Sea Views
Access: Asphalt Road
Reference ID: PC0612
A RARE AND UNIQUE OPPORTUNITY TO OWN A SEAFRONT
PLOT OF 1218.00 SQ.M. IN THE AREA OF AKROTIRI, NORTH
EAST CHANIA. IF YOU ARE LOOKING FOR ABSOLUTE PRIVA-
CY, PEACE AND TRANQUILITY AS WELL AS STUNNING AND
UNINTERRUPTED SEA AND COASTAL VIEWS THEN THIS IS A
NOT-TO-BE MISSED OPPORTUNITY.
Property Type: Investment Plot
Tenure: Freehold
Plot Size: 185.000.00 m²
Reference ID: PC0876
Classified as having outstanding value and
with very high Return of Investment potential
(ROI) this is a not to be missed opportunity.
The property is located 10.00km
west of Palaiochora, Chania.
The property holds an official license for
touristic development (up to 150 beds)
and also holds Forest and Archaeological
clearance.
View the property or discover more info on-line:
https://www.arencores.com/property/kalathas-waterfront-plot-for-sale/
View the property or discover more info on-line: https://www.
arencores.com/property/palaiochora-investment-plot-for-sale/
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19
ARENCORES CHANIA REAL
ESTATE MAGAZINE
MEGALA CHORAFIA BUILDING PLOT
FOR SALE - APTERA, CHANIA
320.000 EURO
ALMYRIDA FOUR MAISONETTES FOR
SALE - AN INVESTMENT PROPERTY
400.000 EURO
Locality: Suburb
Property Type: Building Plot
Tenure: Freehold
Size: 1800.00 sq.m.
Builds: 400.00 sq.m.
Max Floors: 2
Reference ID: PC0107
THIS 1800.00 SQ.M. EXQUISITE PIECE OF LAND IS LOCATED
IN ONE OF THE MOST BEAUTIFUL AREAS OF CHANIA MU-
NICIPALITY. THE PROPERTY PROVIDES SPECTACULAR VIEWS
TO THE SOUDA BAY AND THE WHITE MOUNTAINS
YOU COULD EASILY BUILD A RESIDENTIAL OR INVESTMENT
PROPERTY UP TO 400.00 SQ.M. TO CALL YOUR OWN. A
NOT TO BE MISSED OPPORTUNITY TO OWN A GREAT REAL
ESTATE ASSET IN THE ONE OF THE MOST ELEGANT TOWNS
IN GREECE.
Locality: Residential
Property Type: Maisonette-Commercial
Basement: 169.34 m²
Ground Floor: 160.00 m²
First Floor: 131.00 m²
Plot Size: 427.50 m²
Swimming Pool: 32.00 m²
Reference ID: CC1900
View the property or discover more info on-line: https://
www.arencores.com/property/megala-chorafia-plot-an-exquisite-piece-of-land-near-chania/
View the property or discover more info on-line: https://
www.arencores.com/property/almyrida-four-maisonettes-for-sale-apokoronas-properties/
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ARENCORES CHANIA REAL
ESTATE MAGAZINE
KOURNAS TWO STOREY
MAISONETTE FOR SALE
180.000 EURO
A RARE CHRISSI AKTI
PLOT FOR SALE
250.000 EURO
Locality: Residential
Property Type: Family House
Property Size: 80.00 m²
Plot Size: 224.00 m²
Bedrooms: 2
Reference ID: HC1801
Locality: Residential
Property Type: Building Plot
Tenure: Freehold
Size: 234.00 m²
Builds: 240.00 m²
Gradience: Slope
Reference ID: PC0402
THIS WONDERFUL CHRISI AKTI PLOT FOR SALE OF 234.00
m² IS SITUATED IN THE SOUGHT AFTER AND PRESTIGIOUS
AREA OF NEA KYDONIA, NORTH WEST OF CHANIA.
THE PROPERTY BOASTS WONDERFUL SEA AND MAIN-
LAND VIEWS AND IS A SUPERB OPPORTUNITY TO PUR-
CHASE LAND FOR YOUR HOLIDAY HOME OR AS AN IN-
VESTMENT PROJECT IN THIS THRIVING AREA.
View the property or discover more info on-line: https://www.
arencores.com/property/chrisi-akti-plot-for-sale/
LOVELY TWO LEVELS 80.00 SQ.M. HOUSE WITH
VIEWS OF THE LOCAL HILLS AND COUNTRY-
SIDE OF KOURNAS, CHANIA. FULL OF CHARM
AND CHARACTER, THIS PROPERTY ALSO OFFERS
STUNNING INVESTMENT PROSPECTS.
A NOT TO BE MISSED OFFER IN CLOSE PROXIMI-
TY TO THE LAKE AND ALL AMENITIES.
View the property or discover more info on-line: https://www.
arencores.com/property/kournas-house-for-sale/
ARENCORES CHANIA REAL
ARENCORES CHANIA REAL
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IMAGE SOURCE: UNSPLASH
CRETAN CHEESE MAKING IN
THE WHITE MOUNTAINS
Greek mythology describes that the sky and thunder
god Zeus, the king of the gods of Mount Olympus was
raised in a cave deep inside the Cretan mountains having
as companion a divine goat named Amalthea who
fed the baby Zeus with its milk.
Its name is translated from the ancient Greek and means
“gentle goddess.” Zeus’ father, inherited his father’s
curs¬e: for fear of losing his place and rule, swallowed
up all his newly born children. His wife Rhea suffered
greatly from this, and when the next child was born, she
slipped a stone wrapped in diapers instead of Kronos.
Kronos swallowed the stone, not suspecting anything, so
the kid had to hide. Rhea hid him on the island of Crete
in the cave of Mount Ida in the area of Ideon Antron. The
goat Amalthea saved the life of the future supreme god.
She produced two goatlings and fed Zeus with the abundant
milk that appeared. Moreover, Amalthea hung on a
tree baby Zeus in a cradle so that he could not be found
either on the ground, or in the sky, or in the sea, when
Kronos was looking for him.
IMAGES SOURCE: UNSPLASH
ARENCORES CHANIA REAL
ESTATE MAGAZINE
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25
ARENCORES CHANIA REAL
ESTATE MAGAZINE
d Zeus, the king of the gods of Mount Olympus was raised in a cave deep inside the Cretan mountains having
as companion a divine goat named Amalthea who fed the baby Zeus with its milk.
AMALTHEIA’S
SKIN, OR THAT OF
HER GOAT, TAK-
EN BY ZEUS IN
HONOR OF HER
WHEN SHE DIED,
BECAME THE PRO-
TECTIVE AEGIS
IN SOME TRADI-
TIONS.
Its name is translated from the ancient Greek and means “gentle goddess.” Zeus’ father, inherited his father’s
Infancy of Zeus, by Jacob Jordaens, early 1630s (Louvre Museum)
SOURCE:WIKIPEDIA
curs¬e: for fear of losing his place and rule, swallowed up all his newly born children. His wife Rhea
IMAGE
suffered greatly from this, and when the next THE child BIRTH was OF born, A she GASTRONOMY
slipped a stone wrapped in diapers instead
was of very Kronos. fond of his goat-saver and
Zeus
TREASURE IN CRETE
Amalthea Kronos received swallowed from the him stone, a golden not suspecting dog High anything, up the so the Cretan kid had mountains, to hide. Rhea shepherds
hid him as a on cage the island to gather of sheep and goats for
of Ideon and Antron. goatherds The goat take Amalthea milk from saved the milking. life of the Made future of nothing but stone on
who Crete guarded in the her cave until of Mount her death. Ida in Moreover,
the area
supreme accidentally god. broken goat’s horn be-
came a cornucopia.
their flocks straight to the cauldron in the
mitata.
stone, the mitata continue to stand on
the mountain rock as examples of perfect
She produced two goatlings and fed Zeus with the abundant milk that appeared. Moreover, vernacular Amalthea architecture hung – modest, sturdy
The legend of the goat Amalthea became
the source of the phraseologism from
the myths of ancient Greece, where the
“cornucopia” term is used. The one who
held the cornucopia in his hands could get
everything he wanted
Mitata is the Cretan name for the basic
shepherds’ dwellings built high up on the
slopes in the mountains and, since one
of their primary uses is to store and age
cheese, they’re often considered to be the
earliest form of dairies in Greece.
and functional in the extreme. Larger,
squarer stones were placed at the bottom
in a circle, with the stones at the top being
carved into shape.
The structures became narrower as they
grew taller, much like an igloo, in order to
The goat served Zeus even after her death.
The god used her unusually strong skin
(according to the ancient Greek aegis) for
the shield during the war with the titans.
Covering his shield with Amalthea’s skin,
Zeus made him invincible, and under the
aegis of his shield he began to fight with
the titans. Thus, another popular expression
“under the auspices” appeared.
These stone-built structures symbolize
the very initial stage of what later grew
into a great tradition of dairy farming in
Crete.
Being so remote, the mitata were also
used as hideouts during the Ottoman
occupation; during the Second World
War, they provided cover for resistance
fighters. These shelters, built of locally-sourced
stones and shaped like Minoan
tholos tombs, have entrances that face
due east and, they are unique to Crete.
stand the weight of the winter snow. The
gaps between the stones were deliberately
not filled in with clay or any other material,
in order to allow air to pass through
the walls to dry out the cheese, maturing
it in the process.
A small window – like a skylight – was
left at the top of the dome, where spiders
would be able to weave a nice thick web,
catching flies and other insects and keeping
them away from the cheese: a brilliant
example of man and insect working to-
IMAGE SOURCE:ANOGEIAMUNICIPALITY (www.anogeia.gr)
IMAGE SOURCE:SHUTERSTOCK
Some of the shelters had two domes or Since there were no laws mandating
two rooms to separate the processes the use of pasteurized milk in the past,
of preparation and ageing. Standard the cheeses that came out of these
items and utensils found here included
the toupakia (straw baskets used as taste, with relatively intense and ag-
traditional dairies were quite harsh in
molds for fresh cheese); pots and ladles gressive flavors.
for the cheesemaking itself; a pan or a
pot where the shepherds would cook “Hole cheeses,” made with unpasteurized
milk, are particularly treasured, so
their food; a katsouna (shepherd’s
crook) and some rudimentary form of called because the natural fermentation
process and lengthy ageing create
bedding.
large holes in their surface.
Some would have family photographs
on the walls to keep them company and Most of Crete’s surviving mitata have
to add a note of joy to their otherwise been around for at least several decades.
Many of them have been aban-
drab surroundings.
doned and no one is building new ones
Coming straight from the udder, the anymore, as developments in transportation
allow shepherds to live in their
milk was already warm when it was
poured into the hot cauldron and treated
with rennet, an enzyme found in the pasturelands whenever the need aris-
villages or towns and dart up to the
stomachs of young ruminants that allows
them to digest
es.
milk.
Over the years, the old-fashioned cauldrons,
or kazania, which were used to
heat milk, have also fallen into disuse.
New food safety laws have changed
production processes, and, as a result,
have also changed the recipes themselves.
Crete’s cheeses are now made
in modern facilities with pasteurized
milk heated to exact temperatures in
stainless steel containers.
Although the method of production has
been modernized, the cheeses of Crete
remain very special indeed. More than
15 different types can be found on the
island today, but all of them share a
common history of production that began
in cauldrons bubbling away in the
island’s mitata.
DISCOVER MORE INFO ABOUT THIS FASCINATING STORY
AT GREECE IS ON-LINE: https://www.greece-is.com/mitata-the-origins-of-cretan-cheesemaking/
gether in symbiosis.
Each one was surrounded by a drystone
wall about 1.5m high, which was used
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Research from Global Witness and Transparency Inter-
‘I agree with every word of its report; I just wonder why it
national suggests the EU’s 28 Member States have se-
hasn’t been done before, since the problem has been known
cured about €25bn of foreign direct investment through
about for years.’
these schemes over the past ten years. Revenues from
HAVE
GOLDEN
VISA
PROGRAMS
LOST THEIR
POPULARITY?
golden visa schemes globally are estimated to be $13bn
a year, about $3bn of which is accounted for by schemes
that offer citizenship.
The key concern is that EU passports and residency are
being granted to people who should not be receiving
them. In September 2018, for example, police in Finland
raided a real estate agency at the centre of a suspected
€10m money laundering operation controlled by a Russian
businessman who reportedly purchased Maltese
citizenship. In addition, two Ukrainian businessmen who
were granted citizenship by Cyprus turned out to have
extracted €4.8bn from a bank they founded together in
If the Commission had made its position clear sooner,
then fewer Member States would have started these
schemes in the first place, he says. ‘Still, it is never too
late. I only hope that all EU countries will accept the report
and start acting according to its conclusions as soon as
possible.’
The European Parliament’s Special Committee on Financial
Crimes and Tax Evasion released a draft report
in November 2018 that called on EU Member States to
phase out all such schemes. Their potential economic
benefits ‘do not offset the serious money laundering
and tax evasion risks they present,’ said the report,
Ukraine.
which focused in particular on Malta’s Individual Investor
Programme.
Bulgaria, Greece, Hungary, Latvia, Lithuania and Portugal
have been singled out as examples of EU Member
States that have assigned residency rights to significant
There are growing concerns about the
practice of handing out passports and visas
to wealthy foreigners in return for property
investment. Yet some claim the risks
have been exaggerated.
In January 2019, the European Commission (EC) called
States that operate them. Brussels says it intends to
monitor the steps that Member States take to ensure
transparency and good governance in the implementation
of the schemes, and will establish a group of experts
to deal with issues of transparency, governance and security.
numbers of wealthy Africans, Chinese and Russians in
exchange for investment in recent years. ‘If you have a
lot of money that you acquired through dubious means,
securing a new place to call home far away from the
place you stole from isn’t just appealing, it’s sensible,’
says Naomi Hirst, Senior Campaigner at Global Witness.
for EU Member States to curb the practice of giving
foreigners residency or citizenship in return for investment.
Several European countries offer such programmes,
often referred to as ‘golden visas’ or ‘golden
passports’. Such schemes ‘pose risks… including in terms
of security, money laundering, corruption, circumvention
of EU rules and tax evasion,’ the EC report says.
Heightening these risks are shortcomings in the transparency
and governance of such schemes, the EC says.
Key information, such as clear statistics on applications
received, accepted and rejected, are often missing or incomplete.
There are no mechanisms to ensure cooperation on
golden passport schemes (those offering citizenship) –
notably on security checks – among the EU Member
‘Legally residing in the EU and in the Schengen Area
comes with rights and privileges that should not be
abused,’ said European Commissioner Dimitris Avramopoulos.
‘Member States must at all times fully respect
and apply existing obligatory checks and balances – and
national investor residence schemes should not be exempt
from that.’
These schemes became increasingly attractive to many
European countries in the wake of the 2007–2008 global
financial crisis. Originally designed for Caribbean
countries, they emerged as a way for governments to attract
quick investment, often in their property markets.
In some cases, the funds go straight into state coffers.
These schemes offer a safe haven from authorities who
might be looking to seize stolen assets, and the freedom
to travel without raising suspicion.
In the words of one Russian lawyer speaking to British
author Oliver Bullough: ‘Your money is offshore already
and, once you have a new passport, you are effectively
offshore yourself, beyond the reach of your home country’s
law enforcement.’
QUICK ACTION IS REQUIRED
Against this backdrop, the Commission has to act. ‘The
Commission has finally decided to ensure that its rules
are respected,’ says Drago Kos, Chair of the Organisation
for Economic Co-operation and Development
(OECD) Working Group on Bribery in International
Business Transactions.
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ARENCORES CHANIA REAL
ESTATE MAGAZINE
GREECE IS
GAINING A
STRONGER
BRAND NAME,
WHICH CAN
WORK
POSITIVELY IN
ATTRACTING-
PROPERTY
INVESTORS
COMMERCIAL REAL ESTATE
IN CRETE MUST SEE
CORONAVIRUS CRISIS
AS A CHANCE TO ADAPT
AND RENEW
THE GLOBAL LATEST TRENDS AND THEIR INFLUENCE IN THE
COMMERCIAL PROPERTY MARKET OF CHANIA, CRETE.
In a matter of weeks, the lives of so many have changed in ways they had never imagined some
months ago. In Greece and globally, people can no longer meet, work, eat, shop, and socialize as
they used to. The workforce of almost every sector moved rapidly from business as usual to social-distancing
and work-from-home.
Instead of traveling and going out to shop or eat at restaurants, consumers are tightening their
purse strings to spend only on essentials—primarily food, medicine, and home supplies—and getting
these delivered on their door steps much more often.
ARENCORES CHANIA REAL
ESTATE MAGAZINE
30
Social distancing has directly altered the way people
the same way during the crisis. Properties with large hu-
Even a small shift to property digitalization could have
The drop in June and even in July is certain to be even
live and interact. The pandemic and its associated ef-
man density seem to have been the hardest hit: health-
lasting impact when alternatives such as video confer-
more dramatic. But what will the commercial real
fects produced an unprecedented uncertainty for the
care facilities, shopping malls, tourism accommodation,
ences prove sufficient or even preferable.
estate market recovery look like in Crete, Greece once
real estate sector.
and student housing are among the most popular.
the pandemic passes and the Greek economy reaches
When thinking about digital transformation, it’s not
its new state of normal?
To respond to the current and urgent threat of COV-
By contrast industrial facilities and small offices have
limited to creating a video conference room, an on-line
ID-19, many real estate investors will centralize cash
faced lower impact. As of May 28, by one estimate, the
shop or implementing artificial intelligence and virtual
Currently, commercial property owners and leading
management to focus on flexibility and change how
commercial real estate transactions had fallen 38 per-
reality in your business.
real estate companies around the world are working
they make portfolio and capital expenditure decisions.
cent or more and as much as 45 percent for tourism
hard to improve the ways of attracting tenants, improve
Some investors will feel an even greater sense of urgen-
real estate assets. It’s no surprise that in order to mit-
The shift to a digitalization era may also further boost
the commercial lease negotiation procedures, establish
cy than before to proceed to the transformation of their
igate the scale and severity of the virus - people avoid
already high demands for large business space. Rela-
reliable and trustworthy valuation for their assets, and
decision making, strategic approach and viable assets
crowds, universities postpone their activities on cam-
tively niche real estate assets (such as self-storage and
improve their digitization infrastructure with much
identification.
pus, and retailers, restaurants, and hotels close their
delivery only restaurants - cloud kitchens) could see an
emphasis on the health and safety in physical spaces.
doors. Thus, the economic viability of owning and oper-
improvement in their profitability, as demand density
Moreover, as the pandemic affects commercial real es-
ating those properties becomes very doubtful.
goes up when more people work from home, while oth-
However, at the same time they need to bridge the gap
tate it is crucial to establish new methods and prioritize
er categories such as cafes, old hotels, fashion shops,
between capital preservation and competitive differ-
novel approaches that should protect the safety and
cinemas, theatres, etc may suffer.
entiation.
health of all employees, tenants, and other end users of
space such as hotel tenants.
The most intelligent real estate investors and property
managers are also trying to generate a reliable prognosis
about the future of the sector in the following years.
THE CHALLENGE BEHIND THE
CRISIS WE ARE FACING
For several years, real estate investments in Crete,
Greece have generated steady cash flow and returns
significantly above other sources of investments —
such as Direct equity, National Pension System (NPS)
Cloud Kitchens offers services
ranging from shared
kitchen facilities to food
delivery service and marketing
aids. Such business
model of a cloud kitchen,
also known as a virtual
kitchen, has become the
latest buzzword among
restaurant operators
who would like to cut
down costs such as rent
for cooking and storage
space and equipment
while reaching out to
greater customers.
or Bank fixed deposit (FD) —with only slightly more
risk. Since the virus outbreak, however, this reality has
changed, and real estate investors have been hit hard.
Property construction investors, owners, building contractors
and managers are struggling to mitigate health
risks for their employees and customers.
THE CHALLENGE BEHIND THE
CRISIS WE ARE FACING
HOW LEADING COMMERCIAL
REAL ESTATE OWNERS AND
OPERATORS ARE NAVIGATING
Some real estate firms are now starting the process
of thinking ahead to deal with the uncertainties and
the new challenges. However, rather than relying on
Many developers can’t acquire the necessary building
THE CRISIS
old-fashioned approaches and strategies, real estate
permits and they face project delays, bottlenecks, and
Commercial real estate owners and investors should
leaders are looking to psychologists, IT professionals,
potentially reduction on the return of Investment rates.
also keep one eye on a future that could be meaningful-
While the longer-term consequences of the pandemic
and assets digitalization experts for answers.
Moreover, because of the lockdown, many real estate
ly different to ensure their long-term profitability. The
are difficult to predict, the immediate market impacts
assets owners and operators face drastically reduced
demand for more physical space and more-intensive
of the coronavirus crisis have been made clear. The
Will future clients demand larger and more enclosed
operating income, and almost all are worried about
operational requirements are likely to be among the
economic fallout because of the pandemic has put the
workspaces? What will people think about virtual open
how many tenants will manage to make their monthly
most dominated parameters for any future investment.
commercial real estate market in the island of Crete on
houses and showings? While uncertainty currently
payments.
Consequently, these trends should also influence the
pause. Moreover, new listings of commercial real estate
reigns, commercial real estate owners may find new in-
demand for hospitality properties and short-term leas-
assets with high ROI potential have dropped precipi-
sights and methodologies to effectively maintain their
However, not all commercial properties are performing
es.
tously.
assets and preserve their economic viability.
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The expected dramatic decline in tourist arrivals
this summer in Chania, Crete due to the
pandemic will definitely affect the real estate
market. Signs of structural changes within the
property market are already visible.
CHANIA EXCLUSIVE
PROPERTIES
FOR SALE
Initial evidence from online property rental
ads in the most popular short-term rental
platforms (Airbnb, HomeAway, etc.) shows
a significant fall in demand, in the context
of tourist traffic restrictions. Consequently,
this fact has led to an increased supply of
apartments in Chania Town and Akrotiri area
(Kounoupidiana, Pithari, Korakies) for longterm
rental.
The COVID-19 pandemic brings travel to a
standstill, causing massive job and revenue
losses. Thus, more and more landlords are
moving away from short-term rental to the
traditional long-term rental market. Apparently,
in view of the impact of the pandemic
on tourism, more and more property owners
realise that their revenues are likely to be significantly
reduced in the next months, making
their properties not economically viable assets
in the short-term rental market.
REAL ESTATE
RECESSION?
NOT SO
FAST
AND NOT
FOR ALL
PROPERTY
TYPES
With the shortening of the
tourist season in Crete,
property-owners and property
managers have already begun
moving their properties
from the short-term rental
market – (such as AIRBNB)
to longer-term models.
However, should we expect
a significant correction in
terms of long-term rental
prices or a reduction in the
residential properties selling
prices?
It is noted that short-term rentals are a relatively
new practice in Greece and have grown
rapidly in recent quarters, while many landlords
have taken out loans to renovate their
properties for short-term leasing. Falling
rental incomes are putting strains on these
investors’ financial position and debt-servicing
capacity. Longer-term rental agreements
are thus seen as a reliable and economically
viable alternative.
Most of these properties are one or two-bedroom
apartments and they are also rented
furnished and fully equipped and, in most cases,
have been renovated recently. Thus, their
rental prices are typically higher than those
of the large real estate stock in the same area.
In addition, they are mostly located in specific
areas around the centre of Chania city
or near the Technical University of Crete in
Kounoupidiana area and other tourist spots
across the Prefecture of Chania.
www.chaniarealestate.com
It is a long established fact that a reader will
be distracted by the readable content of a
page when looking at its layout. The point of
using Lorem Ipsum is that it has a more-orless
normal distribution of letters, as opposed
to using ‘Content here, content here’, making
it look like readable English.
The re-shift of apartments from the shortterm
market to the long-term segment, despite
the pressure it will put on rental prices,
is not expected to lead to significant price
adjustments in the selling prices of residential
properties.
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ARENCORES CHANIA REAL
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GREECE’S CORONAVIRUS MANAGEMENT
SUCCESS IMPRESSES FOREIGN
REAL ESTATE INVESTORS
The appearance of Greece among the best
performers in the world holding down the
number of cases and severity of the virus has
made foreign real estate investors eager to
pick up properties.
The scientific approach to dealing
with the COVID-19 Coronavirus
pandemic, making Greece among
the best countries in the world
holding down the number of cases
alytics platform designed and maintained
by ARENCORES, showed
that in April, as the first wave of the
pandemic progressed, there was
a significantly large interest (no
REAL ESTATE CH NIA
V
Property requests from Germany were among
the highest, followed by the United Kingdom,
Norway, the United States, Israel, Denmark and
Australia, countries to which scores of thousands
of Greece’s youngest talents escaped during a
nearly decade-long and severe economic crisis,
indicating interest in returning home.
and severities has made foreign real
estate investors keen to get into
property investment.
There are growing signs that 2020
will be up from the previous year
despite the aftermath of the virus
and a long lockdown that closed
businesses temporarily and saw
transactions) by foreign buyers.
Property requests from Germany
were among the highest, followed
by the United Kingdom, Norway,
the United States, Israel, Denmark
and Australia, countries to which
scores of thousands of Greece’s
youngest talents escaped during a
A REAL ESTATE BLOG DEDICATED TO
CHANIA PROPERTY MARKET
a dramatic decline in short-term
nearly decade-long and severe eco-
rentals such as Airbnb.
nomic crisis, indicating interest in
returning home.
That’s good news for an economy
that was set to grow 2-3 percent
Not on the list are China and Rus-
this year but now is predicted to
sia, possibly because the govern-
contract as much as 12 percent or
ment temporarily suspended visas
more, with tourism – the country’s
for Chinese visitors and property
biggest revenue engine – set to take
investors who had been the most
a big hit.
important buyers of properties
they turned into short-term rent-
Foreign cash inflow numbers for
als, using the property purchases to
property purchases in 2019 were
qualify for the Greek Golden Visa
STAY HOME
up an amazing 29.4 percent, reaching
approximately 1.50 billion euros
scheme that comes with residency
permits and visa-free travel to the
I WANT TO GO
TO
CRETE
THIS SUMMER
beating the previous record of 1.1
billion euros the year before.
Data from RESTful, a Big Data An-
26 member countries of the Schengen
zone.
RESTful by ARENCORES
BIG DATA ANALYTICS PLATFORM FOR THE
www.chaniarealestate.com
PROPERTY MARKET OF CRETE, GREECE
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ARENCORES CHANIA REAL
ESTATE MAGAZINE
LINKING
PROPERTY
BUYERS AND
OWNERS
WITH
EXCEPTIONAL
REAL ESTATE
SERVICES
WHY ARENCORES
ARENCORES
CHANIA REAL ESTATE EXPERTS
NOT AN ORDINARY REAL ESTATE FIRM
To build and maintain sustainable real estate projects ARENCORES
uses a holistic approach, necessary to enrich their business potential
and establish an effective deal structuring strategy.
At ARENCORES we have developed and maintained an evidence based approach to design and structuring a real
estate consulting experience for addressing critical challenges, in both event-driven and long-term scenarios of the
real estate transactions and investment procedures.
Because real estate is a sophisticated sector our engagements often involve the role of trusted business advisor via
our practical, immediate and sustainable solutions. ARENCORES MEDIATION ® , ARENCORES MARKET INTELLI-
GENCE ® including ARENCORES PROPERTY MANAGEMENT ® and ARENCORES Sourcing ® , are a paradigm of the
advantageous benefit brought to our clients by our professional team.
We help our clients to identify and execute innovative ways in transforming complexities and uncertainties into true
competitive advantages- an evidence to our aptitude to consistently deliver reliable results.
26 Stratigou Tzanakaki Street
73134, Chania, Crete, Greece
T: +30 2821112777
W:www.arencores.com
E: info@arencores.com
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ESTATE MAGAZINE
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