ARENCORES MAGAZINE Issue |No. 8 (Updated)

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 CONSTRUCTION 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

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IMPACT ON THE CONSTRUCTION ACTIVITY IN CRETE

HOW CONSTRUCTION SECTOR IN CHANIA HAS CHANGED


PROPERTY INVESTORS VIEW DURING THE PANDEMIC: WHAT

ARE YOUR TOP FOUR COCERNS?

PANDEMIC COULD MEAN OPPORTUNITY FOR REAL ESTATE

INVESTORS

6

10

12

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

PROPERTY TYPES

35

+ GREECE’S CORONAVIRUS MANAGEMENT SUCCESS IMPRESS

FOREIGN REAL ESTATE INVESTORS

36


4

ESTATE MAGAZINE

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


PROPERTY INVESTORS VIEW

DURING THE PANDEMIC:

WHAT ARE YOUR TOP FOUR

COCERNS?

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.

We examine a real, live project to outline

the impact that the COVID-19 pandemic is

having on the construction activity in Chania,

Crete.

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.

PANDEMIC COULD MEAN OP-

PORTUNITY FOR REAL ESTATE

INVESTORS

CRETAN CHEESE MAKING IN

THE WHITE MOUNTAINS

COMMERCIAL REAL ESTATE IN

CRETE MUST SEE CORONAVI-

RUS CRISIS AS A CHANCE TO

ADAPT AND RENEW

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

and with high Return of Investment potential

(ROI.

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.

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.


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.


6

ESTATE MAGAZINE

IMPACT ON THE

CONSTRUCTION

ACTIVITY IN

CRETE



ESTATE MAGAZINE

7

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.

8


ESTATE MAGAZINE

‘‘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.’



ESTATE MAGAZINE

9

HOW CONSTRUTION

SECTOR IN CHANIA

HAS CHANGED SINCE

CORONAVIRUS

STRUCK


10


ESTATE MAGAZINE

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

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.

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 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.

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.


ESTATE MAGAZINE

11

WHAT

ARE YOUR

TOP FOUR

COCERNS?

A SURVEY

DEDICATED

TO CHANIA

PROJECT

OWNERS,

REAL ESTATE

INVESTORS

CONTRAC-

TORS AND

CONSTRUC-

TION COM-

PANIES.

PROPERTY

INVESTORS

VIEW DURING

THE PANDEMIC



12

ESTATE MAGAZINE

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.

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


ESTATE MAGAZINE

13

SURVEY OUTLINES

17%

14%

ARE YOU EXPERIENCING ANY

DISRUPTION IN THE SUPPLY

OF YOUR MATERIALS OR SER-

VICES FOR YOUR CURRENT

PROJECTS IN CRETE?

22%

47%

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.

Yes, we are seeing severe disruptions

No disruptions

Yes, but only small in scale disruptions

No, but we anticipate some extend of disruptions for the following months

12%

ARE YOU EXPERIENCING ANY

DISRUPTION IN THE SUPPLY

OF YOUR MATERIALS OR SER-

VICES FOR YOUR CURRENT

PROJECTS IN CRETE?

10%

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 usual’.

No, but we anticipate some extend of disruptions for the following months

No

Yes, one or two projects wel be cancelled

Yes, but we will continue our investments after the end of the pandemic

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.

14


ESTATE MAGAZINE

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.

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

for appreciation over the long term

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.


ESTATE MAGAZINE

15

Therefore, the question arises

which housing market indicators

should we be paying attention to

during a recession?

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.

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.


16


ESTATE MAGAZINE

ARENCOS

ARCHITECTURE

ENGINEERING AND

CONSTRUCTION

SERVICES

26 Stratigou Tzanakaki Street

73134, Chania, Crete, Greece

T: +30 2821112777

W:www.arencos.com

E: info@arencos.com


ESTATE MAGAZINE

17

KALATHAS WATERFRONT

BUILDING PLOT FOR SALE

450.000 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.

View the property or discover more info on-line:

https://www.arencores.com/property/kalathas-waterfront-plot-for-sale/

18

PALAIOCHORA INVESTMENT

PLOT FOR SALE

REQUEST MORE INFO

palaiochora@arencores.com

Property Type: Investment Plot

Tenure: Freehold

Plot Size: 185.000.00 m²


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/palaiochora-investment-plot-for-sale/

19


ESTATE MAGAZINE

MEGALA CHORAFIA BUILDING PLOT

FOR SALE - APTERA, CHANIA

320.000 EURO

Locality: Suburb


Tenure: Freehold

Size: 1800.00 sq.m.

Builds: 400.00 sq.m.

Max Floors: 2


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.

View the property or discover more info on-line: https://

www.arencores.com/property/megala-chorafia-plot-an-exquisite-piece-of-land-near-chania/

20

ALMYRIDA FOUR MAISONETTES FOR

SALE - AN INVESTMENT PROPERTY

400.000 EURO

Locality: Residential

Property Type: Maisonette-Commercial

Basement: 169.34 m²

Ground Floor: 160.00 m²

First Floor: 131.00 m²


Swimming Pool: 32.00 m²

Reference ID: CC1900

View the property or discover more info on-line: https://

www.arencores.com/property/almyrida-four-maisonettes-for-sale-apokoronas-properties/

21


ESTATE MAGAZINE

KOURNAS TWO STOREY

MAISONETTE FOR SALE

180.000 EURO


Property Type: Family House

Property Size: 80.00 m²


Bedrooms: 2

Reference ID: HC1801

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.


arencores.com/property/kournas-house-for-sale/

22


ESTATE MAGAZINE

A RARE CHRISSI AKTI

PLOT FOR SALE

250.000 EURO



Tenure: Freehold

Size: 234.00 m²

Builds: 240.00 m²

Gradience: Slope


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.


arencores.com/property/chrisi-akti-plot-for-sale/


ESTATE MAGAZINE

23

IMAGES SOURCE: UNSPLASH


ESTATE MAGAZINE

24


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.

25


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

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.

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.

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.

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

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 together

in symbiosis.

Each one was surrounded by a drystone

wall about 1.5m high, which was used


ESTATE MAGAZINE

26

IMAGE SOURCE:ANOGEIAMUNICIPALITY (www.anogeia.gr)

IMAGE SOURCE:SHUTERSTOCK

Some of the shelters had two domes or

two rooms to separate the processes

of preparation and ageing. Standard

items and utensils found here included

the toupakia (straw baskets used as

molds for fresh cheese); pots and ladles

for the cheesemaking itself; a pan or a

pot where the shepherds would cook

their food; a katsouna (shepherd’s

crook) and some rudimentary form of

bedding.

Some would have family photographs

on the walls to keep them company and

to add a note of joy to their otherwise

drab surroundings.

Coming straight from the udder, the

milk was already warm when it was

poured into the hot cauldron and treated

with rennet, an enzyme found in the

stomachs of young ruminants that allows

them to digest milk.

Since there were no laws mandating

the use of pasteurized milk in the past,

the cheeses that came out of these

traditional dairies were quite harsh in

taste, with relatively intense and aggressive

flavors.

“Hole cheeses,” made with unpasteurized

milk, are particularly treasured, so

called because the natural fermentation

process and lengthy ageing create

large holes in their surface.

Most of Crete’s surviving mitata have

been around for at least several decades.

Many of them have been abandoned

and no one is building new ones

anymore, as developments in transportation

allow shepherds to live in their

villages or towns and dart up to the

pasturelands whenever the need arises.

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/

27


ESTATE MAGAZINE

HAVE

GOLDEN

VISA

PROGRAMS

LOST THEIR

POPULARITY?

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

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

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.

‘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.


ESTATE MAGAZINE

28

Research from Global Witness and Transparency International

suggests the EU’s 28 Member States have secured

about €25bn of foreign direct investment through

these schemes over the past ten years. Revenues from

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

Ukraine.

Bulgaria, Greece, Hungary, Latvia, Lithuania and Portugal

have been singled out as examples of EU Member

States that have assigned residency rights to significant

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.

‘I agree with every word of its report; I just wonder why it

hasn’t been done before, since the problem has been known

about for years.’

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,

which focused in particular on Malta’s Individual Investor

Programme.

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.

29


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.


ESTATE MAGAZINE

30

Social distancing has directly altered the way people

live and interact. The pandemic and its associated effects

produced an unprecedented uncertainty for the

real estate sector.

the same way during the crisis. Properties with large human

density seem to have been the hardest hit: healthcare

facilities, shopping malls, tourism accommodation,

and student housing are among the most popular.

To respond to the current and urgent threat of COV-

ID-19, many real estate investors will centralize cash

management to focus on flexibility and change how

they make portfolio and capital expenditure decisions.

Some investors will feel an even greater sense of urgency

than before to proceed to the transformation of their

decision making, strategic approach and viable assets

identification.

Moreover, as the pandemic affects commercial real estate

it is crucial to establish new methods and prioritize

novel approaches that should protect the safety and

health of all employees, tenants, and other end users of

space such as hotel tenants.

By contrast industrial facilities and small offices have

faced lower impact. As of May 28, by one estimate, the

commercial real estate transactions had fallen 38 percent

or more and as much as 45 percent for tourism

real estate assets. It’s no surprise that in order to mitigate

the scale and severity of the virus - people avoid

crowds, universities postpone their activities on campus,

and retailers, restaurants, and hotels close their

doors. Thus, the economic viability of owning and operating

those properties becomes very doubtful.

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)

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.

Many developers can’t acquire the necessary building

permits and they face project delays, bottlenecks, and

potentially reduction on the return of Investment rates.

Moreover, because of the lockdown, many real estate

assets owners and operators face drastically reduced

operating income, and almost all are worried about

how many tenants will manage to make their monthly

payments.

However, not all commercial properties are performing

THE CHALLENGE BEHIND THE

CRISIS WE ARE FACING

Commercial real estate owners and investors should

also keep one eye on a future that could be meaningfully

different to ensure their long-term profitability. The

demand for more physical space and more-intensive

operational requirements are likely to be among the

most dominated parameters for any future investment.

Consequently, these trends should also influence the

demand for hospitality properties and short-term leases.


ESTATE MAGAZINE

32

Even a small shift to property digitalization could have

lasting impact when alternatives such as video conferences

prove sufficient or even preferable.

When thinking about digital transformation, it’s not

limited to creating a video conference room, an on-line

shop or implementing artificial intelligence and virtual

reality in your business.

The shift to a digitalization era may also further boost

already high demands for large business space. Relatively

niche real estate assets (such as self-storage and

delivery only restaurants - cloud kitchens) could see an

improvement in their profitability, as demand density

goes up when more people work from home, while other

categories such as cafes, old hotels, fashion shops,

cinemas, theatres, etc may suffer.

The drop in June and even in July is certain to be even

more dramatic. But what will the commercial real

estate market recovery look like in Crete, Greece once

the pandemic passes and the Greek economy reaches

its new state of normal?

Currently, commercial property owners and leading

real estate companies around the world are working

hard to improve the ways of attracting tenants, improve

the commercial lease negotiation procedures, establish

reliable and trustworthy valuation for their assets, and

improve their digitization infrastructure with much

emphasis on the health and safety in physical spaces.

However, at the same time they need to bridge the gap

between capital preservation and competitive differentiation.

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.

HOW LEADING COMMERCIAL

REAL ESTATE OWNERS AND

OPERATORS ARE NAVIGATING

THE CRISIS

While the longer-term consequences of the pandemic

are difficult to predict, the immediate market impacts

of the coronavirus crisis have been made clear. The

economic fallout because of the pandemic has put the

commercial real estate market in the island of Crete on

pause. Moreover, new listings of commercial real estate

assets with high ROI potential have dropped precipitously.

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

old-fashioned approaches and strategies, real estate

leaders are looking to psychologists, IT professionals,

and assets digitalization experts for answers.

Will future clients demand larger and more enclosed

workspaces? What will people think about virtual open

houses and showings? While uncertainty currently

reigns, commercial real estate owners may find new insights

and methodologies to effectively maintain their

assets and preserve their economic viability.

33


ESTATE MAGAZINE

CHANIA EXCLUSIVE

PROPERTIES

FOR SALE

www.chaniarealestate.com


ESTATE MAGAZINE

34

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.

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 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.

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.

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.

35


ESTATE MAGAZINE

GREECE’S CORONAVIRUS MANAGEMENT

SUCCESS IMPRESSES FOREIGN

REAL ESTATE INVESTORS

STAY HOME

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.

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.

I WANT TO GO

TO

CRETE

THIS SUMMER

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

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

a dramatic decline in short-term

rentals such as Airbnb.

That’s good news for an economy

that was set to grow 2-3 percent

this year but now is predicted to

contract as much as 12 percent or

more, with tourism – the country’s

biggest revenue engine – set to take

a big hit.

Foreign cash inflow numbers for

property purchases in 2019 were

up an amazing 29.4 percent, reaching

approximately 1.50 billion euros

beating the previous record of 1.1

billion euros the year before.

Data from RESTful, a Big Data Analytics

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

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

nearly decade-long and severe economic

crisis, indicating interest in

returning home.

Not on the list are China and Russia,

possibly because the government

temporarily suspended visas

for Chinese visitors and property

investors who had been the most

important buyers of properties

they turned into short-term rentals,

using the property purchases to

qualify for the Greek Golden Visa

scheme that comes with residency

permits and visa-free travel to the

26 member countries of the Schengen

zone.

RESTful by ARENCORES

BIG DATA ANALYTICS PLATFORM FOR THE

PROPERTY MARKET OF CRETE, GREECE


ESTATE MAGAZINE

36

REAL ESTATE CH

V

NIA

A REAL ESTATE BLOG DEDICATED TO

CHANIA PROPERTY MARKET

www.chaniarealestate.com

37


ESTATE MAGAZINE

LINKING

PROPERTY

BUYERS AND

OWNERS

WITH

EXCEPTIONAL

REAL ESTATE

SERVICES

WHY ARENCORES

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.


ESTATE MAGAZINE

38

ARENCORES

CHANIA REAL ESTATE EXPERTS

26 Stratigou Tzanakaki Street

73134, Chania, Crete, Greece

T: +30 2821112777

W:www.arencores.com

E: info@arencores.com

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ARENCORES MAGAZINE Issue |No. 8 (Updated)

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