"The Greek property market has changed radically in the last decade, says Irini Tzortoglou, head of retail banking at Piraeus Bank London. "Certainly, when it was apparent that the Olympic works were coming to an end, many Greek construction companies changed their focus to the holiday property home market which, in turn, created a product which was not previously available in an organised manner. Still, to this day, one will not see in Greece the large-scale developments seen in other countries."

The more modest level of development in the Greek property market means that it sits comfortably between emerging markets such as Bulgaria and mature markets such as the Spanish Costas. There are Greek mortgage options available to foreign buyers, some for up to 85 per cent of property value, but the beauty and original attraction of the country remains - especially as attention moving away from the pockets of block development established in the 1970s and 1980s.

"The Greek sector is rapidly moving away from the all-inclusive tourism to boutique hotels, villas, restored traditional houses while developers are looking to create resorts which will combine a wide range of facilities, sporting and pampering activities with luxurious accommodation," says Tzortoglou: "Property development is also moving from the better known and more developed Greek areas to lesser known and more affordable areas. In Crete, for example, buyers and developers are moving away from the North Western coast of Chania to the south coast of the island and the far Eastern corner of it."

Although the land in the Greek property market carries a higher price than many new entrants such as Morocco, Romania and Egypt, it is still affordable when compared to the other European countries around the Mediterranean. Away from cheaper, in-land areas, the opportunity still exists to acquire affordable Greek land and property near popular coastal areas, where chances of successfully letting property is much higher than in countries less discovered and with shorter seasons.

Tzortoglou adds that the Greek political and economic situation is healthy: "The Greek economy is enjoying a period of stability and there the country has the political respect of its neighbours, as well as increased visibility brought about by the recent successes of the Euro 2000, the Olympics in 2004 and the Eurovision in 2005."

Mortgage lenders such as Piraeus Bank are currently offering finance up to 80 per cent on residential loans with a minimum loan of 75,000 euros, and up to 70 per cent is also available for land with planning permission. There is also the option of an interest only mortgage for up to two years and repayment terms are between five and 25 years.

So what sort of Greek property can you buy with such finance? Aegean Blue is currently marketing a two-bedroom villa overlooking Skopelos town for 480,000 euros. The villa also has pool access and a veranda. Alternatively, Cretan Developments is also marketing a two-bedroom villa. Twelve kilometres west of Chania, the villa is off-plan and has a sea and mountain views.

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Article first published 23rd May 2007