Chalkidiki Holiday Residential Property Market

Chalkidiki Map

Since the early 1980's Chalkidiki is the rated the most popular holiday destination area for the residents of Thessaloniki and a large number of Greeks in general. It is estimated that Chalkidiki attracts 2 million foreign tourists per year, 15% of the countries tourist activity.

During the summer period approximately 450.000 people reside in Chalkidiki. In recent years the amount of holiday tourists choosing Chalkidiki as their vacation destination from Russia and eastern European Countries has increased significantly.

This is due to:

Its short distance from the City of Thessaloniki
Its natural beauty consisting of: endless coastal areas and beaches with crystal clear waters which have been rewarded the Blue Flag, on numerous occasions, by the European Union and the natural environment which consists of flat to mountainous plains.
The improvement of the National Road Thessaloniki - Neon Moudanion, which provides safer and quicker access to the region, and the improvement of the rural roads within Chalkidiki District. It must be noted improvements can occur, which would further assist the tourism.
The extension and upgrade of Thessaloniki's "Makedonia" Airport, which now caters for larger aircrafts and is capable of servicing more flights per day.

The three peninsulas of Chalkidiki are Kassandra, Sithonia and Mount Athos. They attract a vast range of visitors either on holiday during summer and winter seasons and spiritual tourists. Each peninsular has developed their particular characteristics in respect to the residential holiday home market.

This market sector has flourished during the last 15 years as many residents of Thessaloniki have or are interested in purchasing holiday homes and have choose Chalkidiki as the destination point for their vacations.

Mount Athos Peninsula

It is the eastern peninsula of Chalkidiki. Mount Athos is an independent monastic state. Mount Athos houses a large amount of churches and monasteries and a specific visa is required for entry. The area is forbidden to women and children. Access to the peninsular is gained via boat from the town of Ouranoupoli. New construction works can only occur through the issue of a specific building permit.

Kassandra Peninsula

The Kassandra peninsula is the western peninsula and is known as the "first foot". It is the most popular and populated peninsular, which in turn contributed to the dense construction activity that occurred within the area.

The main construction activities produced a variety of:

Hotels and Hotel complexes
Rooms to let
Holiday apartment buildings
Maisonette and residential complexes

The intense tourist rush by local and foreigners resulted in the development of modern hotel complexes and the refurbishment or redevelopment of existing hotels. This created a vast variety of accommodation facilities that caters all types of tourism. During the summer season know «high season» the facilities are insufficient to cater for the demand.

In general, a significant amount of residential properties are located throughout this peninsula. The residential properties consist of old and newly constructed holiday homes, private residential developments, holiday apartment buildings and residential maisonette complexes. A significant number of residential developments have occurred along the coastal regions, mainly surrounding the existing villages. Due to the amount of development the villages have grown significantly and have reached each other.

Along the eastern section of the peninsula, from north to south are the villages with the most residential developments being - Nea Potidea, Nea Fokia, Afitos, Kallithea, Kriopigi, Polihrono, Hanioti, Pefkohori, and Agias Paraskevis. The towns located within the western section are Sani, Siviris, Fourka, Kalandra, Νea Skioni and Mola Kaliva.

Concentrating on Holiday Homes we can note the following:

Older developments consist mainly of residential apartment buildings, which are mainly of a few stories' high and accommodate for retail units at the ground floor levels. (i.e.fast food/ restaurants, mini markets)
Recent developments are mainly maisonettes or detached housing complexes, which in general are designed, and constructed over three levels, at basement, ground floor and first floor levels. They are of a satisfactory construction standard and in some cases can be classified as luxury developments. Most offer a garden area that has been landscaped at above standard levels, offering very good facilities either swimming pools, beach bars, children's playground facility, mini markets etc.

The Kassandra holiday home real estate market consists of the following:

High demand for the purchase of new residencies with the peak interest during the months from April till October,
Interest is mainly in the purchase of a maisonette or detached dwelling either within a residential complex or on a private block.
During the last five years an increase in the demand to purchase new holiday residencies along the northern sections, between Nea Moudania and Nea Fokia. This is due to lack of vehicle infrastructure along the southern section of the peninsular, which during the summer period is unable to handle the increased traffic.
The varieties of properties available, which offer, interested parties a great choice depending on their budgets.
The land parcels that are not included within the Urban Designated area are in high demand from developers.
This market has seen a substantial amount of continuous growth without any signs of stabilizing.

Currently supply levels are at 4.000 new properties and it is anticipated 2.500 more will be available within the next season. Vacancy rates are at 20%. The recent fires caused a huge environmental disaster within the southern section of this peninsular, in specifically the pine forests that span through Polyhrono, Pefkohori, Paliouri, Agias Paraskevi, Skioni and Mola Kaliva.

The reforesting of the region is imperative so that within a reasonable period of time the natural streams and torrents will occur and the area will rectify the disaster and the natural goodness will be restored.

Sithonia Peninsula

The Sithonia Peninsula is the central peninsula of Chalkidiki and is known as the "second foot". Sithonia is more mountainous and for a long period of time was relatively untouched by the tourist activity. Construction activity within this peninsula is increasing steadily but is yet to reach the levels undertaken on the Kassandra peninsula.

This peninsula hosts an impressive number of Hotel Complexes, hotel apartment buildings which are mainly located in close proximity to the villages and camping facilities. Within the last ten years an increased amount of maisonette-detached dwelling complexes have been developed.

Main construction activities are located in the northwestern section of the peninsula, in Nikiti, Neo Marmara, Toroni and Porto Koufo. Excluding the existing developed towns the eastern section does not boast a significant amount of residential developments. Notable hotel complexes and residential developments of a very high quality are noticed along the coastal road network spanning between Nikitis and Marmara.

Due to the relatively lower level of residential developments - compared to the Kassandra peninsula - the natural environment has been preserved and currently attracts interest from older ages groups interested in purchasing holiday homes. The increased demands, the expected increase in construction activity in conjunction with new infrastructure works (mainly vehicle road ways) that are occurring are expected to boost the holiday home real estate market.

The characteristics of the Holiday home real estate market of Sithonia comprise the following characteristics:

Continuous increase in the demand for newly constructed residencies, mainly due to the saturation of the Kassandra market.
The Urban designated area is to be expanded which will in turn be developed to assist in meeting the demand for newly constructed residencies.
This market has seen a substantial amount of continuous growth without any signs of stabilizing

Currently supply levels are at 2.000 new properties and it is anticipated 800 more will be available within the next season. Vacancy rates are at 15%. The eastern and southeastern section of Chalkidiki is a region that was classified an industrial region, due to its subsoil minerals.

The greater area of Stratoniki and Stratonio accommodated a mine and a quarry and suppressed any type of residential developments within the regions. During the last three years operations ceased at the quarry and mine and minor residential developments have occurred mainly close to the townships of Ierissos and the village of Neo Rodon.

The above-mentioned holiday home developments are at a very initial stage. Due to the saturation of the Kassandra peninsula and the intense development of the Sithonia peninsula, it seems this region is ideal for future developments with mid to long-term profits.

Highland Chalkidiki

Located centrally, close to the boundary of the Prefecture of Chalkidiki is the mountain Holomontas, which is reached via the provincial road that connects the villages of Agios Prodromos, Palaiohori, Neohori, Stageira and the township of Arnea.

During the last ten years this region has seen an increased amount of construction activity focusing on the redevelopment and refurbishment of existing old abandoned properties into winter retreats. In parallel a restricted number of new constructions occurred to accommodate the demand for a new type of retreat in Chalkidiki the winter retreat.

These new developments are in complete harmony with the natural environment, building materials befit and incorporate the surroundings i.e. use of wood paneling, stonework etc.

Source: Lambert Smith Hampton