When it comes to overseas property investment, these days the fashionable way to go is to seek out a relatively unheard of 'up-and-coming' prospective EU member and jump in while property prices are at rock bottom. The hope being that when EU membership arrives your speculative attempt to predict the next hot-spot will pay off as thousands take advantage of the free passage of trade, a skyrocketing economy and the subsequent rise in house prices, leaving you with thousands of pounds in equity to invest in your next big project.
 
What happened to falling in love with a place, such as Greece, that you like better than anywhere else you have ever been to and aspiring to own your own little piece of it when you are financially in a position to do so? Perhaps it is a sign of the times, or perhaps it is the natural desire of any sensible person, but these days, it can often seem like nothing is worth doing unless it turns a profit – and a big one at that! 

Far from being undiscovered, Greece has been a popular holiday and property destination for years and, unlike some of its nextdoor neighbours, gained its EU membership in 1981. Many a holidaymaker can claim to have bared their sun-starved bodies on one of its picturesque beaches or danced the night away at one its popular 18–30s destinations and, as a result, Brits have been buying property in Greece for years. However, it would be a mistake to assume that property in Greece is not a viable option for a second home purchase or investment opportunity just because it's been done before. When it comes to spots you can fall in love with, Eros, the Greek god of love, is capable of making his influence felt just about anywhere. And with around 3,000 islands situated off 15,000 kilometres of coastline, a large mainland area and a peninsula separated from the mainland by the width of a canal, the country certainly gives him enough opportunity to melt the heart of even the most hardened property investor.

On the Rhodes to love
Greece's islands are divided into six groups, which include the Cyclades, the Dodecanese, the islands of the North-Eastern Aegean, the Sporades, the Ioanian and the Saronic Gulf Islands. The two largest islands in Greece, Crete and Evia, stand alone and do not belong to any of the  groups. The largest of the Dodecanese islands and a destination already popular on the holiday front is Rhodes. Natalie Humphreys, the sales and marketing manager for Aegean Homes, moved to the island a year ago with her four-year-old son, Callum in search of a more friendly, relaxed and safe lifestyle. "I have always enjoyed the Mediterranean lifestyle and Rhodes is full of culture, great food, history and magnificent views. It has 300 days of sunshine every year, very low crime and strict laws stopping overdevelopment, so who wouldn't want to come and live here?" Far from being a reason not to buy, Humphreys believes that the fact the island is already popular simply proves that it has a lot to offer overseas property buyers. "For young people like myself there is plenty to do. The Island boasts the best water park in Europe. The nightlife in Rhodes town and in the main tourist spots like Lindos and Pefkos is excellent. And, for those times when you want something a little more low-key, there are plenty of breathtaking walks such as the valley of the butterflies."

The island is becoming increasingly more popular with British sun seekers seeking property in Greece as it offers prices that are low in comparison with other Greek Islands and that of Spain and Cyprus. Says Humphreys, "There are parts of the Island that are inhabited by tourists such as the east coast and the popular village locations on the northwest coast where those seeking to retire or live all year around choose to buy. In addition, Rhodes Town has everything you could expect of a large city in the UK with excellent sports facilities, bowling alleys, cinemas and whole lot more." When considering buying property on the Island there are some locations that are more affordable than others. Aegean Homes has developments close to the historical town of Lindos; with its narrow cobbled streets and amazing beaches this is a popular spot but the prices can be higher than living on the north-west coast of Rhodes.

Tsambika is another top spot. With its breathtaking mountain and sea views it has one of the most popular white sand beaches on Rhodes Island. The site sits atop a hill overlooking the picturesque bay. In addition to this Asklipio boasts spectacular views of the surrounding mountains and sea and is perfect for those seeking peace and harmony Prices for off-plan developments with Aegean Homes vary according to the size and specific location of the property.

At the lower end of the price range a two-bedroom, two-bathroom villa with a nine-metre-by-five-metre pool and a two-year guaranteed rental return for the time you are not using it will start at approximately 280,000 euros. At the top end of the market, a five-bedroom, three-bathroom beachfront property with a pool can be secured for around 750,000 euros with the same guaranteed rental agreement.

Cretan Dreams
Another spot that has been popular with Brits for some time is the picturesque island of Crete. Located to the south-east of the Greece mainland, Crete is the largest of the country's islands and the fifth largest of all the islands in the Mediterranean. Since the 1970s Crete's economy has boomed and now, thanks to a successful agriculture, packing and service industry, has an average per capita income which is close to 100 per cent of the Greek average and unemployment of just four per cent (half of that of Greece).

Hilary Dawson from Crete Homes moved to the island in 1992 after being hit by Eros' spell on a holiday five years earlier and has since spent her time convincing others to do the same. "We had just fallen in love with it and decided we did not want to spend the rest of our lives going back and forth on the tube every day. Instead we wanted to have the chance of a different way of life, in a country relatively free of crime and pollution", says Dawson. When it comes to hot-spots, says Dawson, "most Brits want to buy in the coastal areas, not too far from infrastructure and within an hour's drive of the Airport. Chania and Heraklion have the island's main airports, with one in Sitia in the north-east under expansion. "So the north-west of Crete in the Chania prefecture, the Rethymnon prefecture (especially in the north) and coastal areas to the south-west and the north-east of the Lassithi prefecture are most people's first choice. All these areas offer established infrastructure with hospitals, bus stations, shops, cinemas, sports facilities and so on." A well designed, two-storey, three-bedroom property in Heraklion with fantastic views over the vineyards to the sea is available through Crete Homes for between 351,000 and 400,000 euros.
 
Crete is made up of many small resorts that have grown up and expanded because of tourism. Villages are usually within a ten-minute drive from the coast and are less expensive. "The area of Elounda in the north-east is very beautiful and this is often a first choice, although rising property prices have reflected this popularity and properties can be too expensive for most people. The area around Hersonissos is also becoming popular due to the establishment of a full golf course. Prices for properties in the surrounding hillside villages in this area are rising as people wish to invest", says Dawson. A house with a pool, four studio apartments and ranging views over the surrounding countryside in Elounda will cost in excess of 500,000 euros. However, for those interested in
starting from scratch a 110 square metre plot of land with planning permission will cost 61,000–75,000 euros. In Hersonissos a newly renovated four-bedroom property with a pool and good rental potential can be found for between 400,000 and 450,000 euros. All are available through Crete Homes.
    
It is, however, the areas in Chania that have become the most developed in the last few years, with newly built houses, bungalows and villas of varying degrees of luxury being constructed, often as part of a development with shared pool, or shared use of land. "Because many of the nearby village bars and tavernas close down in the winter, they are perhaps not ideal for permanent living. They are, however, ideal for holidays with excellent rental potential", says Dawson. Picking up a bargain in Crete is no problem if you are willing to do the work. "The cheapest properties are usually those requiring renovation work, especially in the villages and as houses are renovated, they come back on the market either because they were purchased for investment purposes only or the vendors have decided to make a more permanent move to Crete and want a larger property", says Dawson. One such place with plenty of these type of properties is the charming village of Kritsa, the largest village in Crete and very popular due its many shops, tavernas, cafés, good bus service and taxi rank. Only ten kilometres from the seaside resort of Aghios Nikolaos, these properties offer the purchaser a chance to be part of a real Cretan village community. There a pretty two-bedroom village stone house with a spacious roof terrace and great views goes for around 90,000 euros whilst a renovated two bedroom stone house can be picked up for as little as 75,000 euros. All are available through Crete Homes.

The Rest of Greece
Although it has been Crete and Rhodes that have traditionally attracted the most attention from Brits there are many other spots that are starting to seep into the collective British consciousness. As the English language spreads like a plague to every corner of the world, including Greece, there are more and more places that have become appealing and accessible to the average mono-lingual Brit. Katerina Roussou is the Head of Communications for Property Greece Ltd at their main office in Athens. In just over a year at the company she has helped many a Brit find the property they desire in locations all over the country.

According to Roussou current trends suggest that it is still the islands that are most attractive to foreign buyers. "Some of the smaller Ionian islands, like Zante (also known as Zakynthos) or Lefkas, with emerald waters and good access, are popular. Also, lesser-known Aegean islands such as Tinos or Samos are great to explore and are gradually being discovered by non-Greeks", says Roussou. Tinos, in particular, is famous for the Church of Panagia Evangelistria, an abundance of windmills and 50 active villages. Greek-Orthodox and Catholic populations live side by side and the island is also well known for its artists.

A traditional, renovated, stone house on Tinos set on two levels with a fireplace and cosy sleeping area and bathroom on the lower level, a main kitchen, dining area, bathroom and lounge, with Aegean Sea views from the balcony, is available through Property Greece for 272,500 euros. Away from the Islands, the Peloponnese peninsula has much to offer. "Although it already attracts large numbers of tourists and foreign buyers, there is much of the Peloponnese peninsula left undiscovered. It is easily and quickly accessible,  blessed with beautiful beaches and mountain ranges and packed with sites of archeological and historical significance. It is a perfect year-round destination", says Roussou. A new, three-bedroom, two-bathroom villa with a large living room, fitted kitchen, pool and  sea views, located in St. Emilion, near the bustling town of Porto Heli in eastern Peloponnese is available through Property Greece for 647,000 euros.

If you are willing to give up your sea views, thousands of properties are available on the Greek mainland in one of the many little villages. "Village homes away from the sea seem to invariably offer good value for money. Typically, this means that you get a larger home and very sound construction. You may have to compromise on your proximity to the beach." "However", continues Roussou, "if you must have a new build, Halkidiki in Northern Greece is an excellent option. It has an abundant natural beauty, is near the second largest Greek city of Thessaloniki and has been a popular destination for years and has many new-build choices near the beach, at reasonable prices." A newly-built, beachfront house in a residential complex featuring four neighbourhoods of three-storey homes in various sizes in Halkidiki are available through Property Greece for between 262,700 and 350,600 euros. Beach or no beach, view or no view, profit or no profit the big question when considering buying property in Greece is: when will Eros cast his love spell and where will you happen to be when it invariably takes effect?

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Article first published in June 2006