Budget Flights and Greek Holiday Homes

For Northern Europeans seeking a holiday home in the sun, Greece has long been a favoured destination, offering the chance to mix beauty and solitude with a pulsating nightlife. Despite this attraction, the country has remained relatively untapped as far as Greek holiday homes are concerned, especially when compared to the traditional hotspots in Spain, Portugal and France.

Part of the reason for this is the tendency of the Greek government to deter international investors flipping homes, in an attempt to preserve pristine areas and prevent property booms and bubbles from arising. However, this policy has kept prices low and affordable, and so it is a slight mystery why Greek holiday homes number in the tens of thousands rather than the millions in the Iberian Peninsula.

The Untapped Greek Holiday Home Market

Looking deeper, one of the main factors deterring Northern Europeans from buying holiday homes is the lack of cheap flights to Greece. Many holiday home owners buy property near to airports serviced by such companies as Easyjet and Ryanair. This allows them to visit frequently, at much less than the cost of a train ticket from London to the Scottish Islands, or from the Midlands to Cornwall.

Greek airports, on the other hand, have often adopted protectionist policies, resisting the march of the budget carriers. Whilst people fully expect a little extra time and expense for flights to Greece, paying at least £150 from London to Athens is too much. In addition, the lack of regular services to regional airports, other than summer charters, adds extra expense and time onto the trip, making it unviable to enjoy a short break in the country.

Aegean Airlines - Opening the Market for Greek Holiday Homes

The Rise of the Budget Airlines

This trend is changing, especially after the financial troubles of the national carrier, Olympic Airlines, and an increasing number of flights are opening up the country. Easyjet already offers services to many Greek airports, including Corfu and Santorini, and other operators, such as Jet2, are keen to muscle in on the market and tap into the huge holiday market.

Aegean Airlines has announced an alliance with BMI, opening up the number of British provincial airports offering flights to Athens, and connection flights from Athens to the rest of Greece will increase the options. The net outcome of this is that prices should tumble and Aegean has already begun an aggressive campaign, announcing a wealth of special offers for international and domestic flights.

For those seeking to buy a Greek holiday home, this is certainly great news, unlocking the potential for short breaks. The major hotspots have steep property values, but there are many untapped regions where genuine bargains can be found. Opening up the regional airports and offering cheap flights could be the catalyst for the revival of the Greek property market, currently suffering from a period of stagnation.

Other Greek Property News

As we pointed out a couple of weeks ago, in Government, Taxes and Illegal Homes – Concerns for Greek Luxury Property Investors, the Greek government plans to readjust the tax burden concerning property taxes, moving many low and middle-income earners out of the bracket but increasing the rate for large property owners.

It is predicted that the new limit will be 600 000 Euros, lifting a large proportion of the beleaguered middle classes out of the bracket. This is also of benefit to those seeking Greek holiday homes, ensuring that they do not have to pay annual taxes for a property that remains dormant for much of the year.