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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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
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