Why Buy Land?

Land in the Apokoronas district has seen a sharp and sustained increase in value over the last six years, with prices rising at an average of 26% per annum.

In a continuing trend, Apokoronas is becoming one of the most sophisticated and affluent areas in the whole of Crete. Further dramatic rises in land and property prices are predicted due to several factors.

These include the development of a championship golf course and country club by a multi-national corporation. A new five star hotel has recently opened in Kalives, and another luxury hotel in nearby Almyrida was completed in the summer of 2007.

These, along with other attractions, are calculated to attract a significant increase in tourist numbers.

It’s calculated that growing awareness and demand means there will be very little land available in this area in a few years time, with prices reaching a premium in ten years or less.

Land is a finite resource and becoming increasingly scarce. However, changes to the situation in Crete have now created unique opportunities to buy excellent quality land at very reasonable prices.

Membership of the EU has given Cretans the chance to dispose of portions of their land to bring themselves immediate financial benefits.

Cretan Life has acquire much land this way and can thus offer highly attractive options that are far better than buying a ready-built or off-plan property. There are many advantages, including the following points.

Location is paramount. So the choice of where you buy the land is yours – not the previous owner’s or the building company. All our land is within 45 minutes driving distance to an airport, a maximum of 35 minutes drive to Chania and a short drive or walk from beaches.

You choose whether or not to build on the plot – either leaving it in its natural state to appreciate in value over time, or developing it. All our land comes with full planning permissions and we can obtain the EOT licences for the renting out of property. All plots of land have road and utilities access.

You can take advantage of the relatively low prices at present, then build later at a time that suits you best. When you do build, it will be to your personal specification and choice of architectural style, rather than a standard off-the-shelf property.

By becoming a land owner, you give yourself greater financial flexibility and opportunities. For example, raising mortgages or other loans to build property, building for holiday lets, developing commercial property - or even buying more land.

Remember, Cretan Life owns all the land it offers for sale. Buying directly from us therefore saves you the considerable expense of agent’s fees and commissions.

Land is the only investment that truly stands the test of time, unlike many other opportunities where investors have either lost money or at best seen it barely keep pace with inflation. Land is real. It has a physical and tangible reality, which cannot be said about bonds and shares. Land is always a good investment, and it is especially so right now in Crete.

There have been many investment opportunities over the years that promised much but delivered little, despite being recommended by high powered financial analysts. Peps, Investment Zones, Enterprise Zones, Pension Funds, Internet start-ups to give just a few instances.

Although it’s true that over the long term the stock market will keep up with inflation, the fact is most investments in the city have hardly broken even many have experienced depreciation.

By comparison, land is one of the lowest-risk investments you could possibly make. In Crete, it’s also potentially one of the most lucrative.

Property prices are rising at the fastest rates in recent history throughout Europe, making it difficult to acquire land at reasonable cost.

Crete offers probably the last remaining pockets of affordable land, making this the ideal time and place to be in at the beginning of a rapidly expanding boom.

Consider this: in the UK a plot of land aimed at the sophisticated investor looking for a good return averages around 605 m² in area. In sharp contrast, our plots tend to be three and a half times bigger, yet at one sixth of the capital outlay.

Even according to the most cautious forecasts, the indications are that land prices in Crete will double in the next three years.

Land is a very straightforward option for investors. As owners, Cretan Life can make the whole purchase process as uncomplicated as possible, offering a broad spectrum of prices, payment options and professional guidance at every stage. So what are the likely costs, and how do you proceed?

Cretan Life has greatly simplified the whole business of buying of land in Crete for investment purposes. To get to the basics, we offer plots ranging in price from around €25, 000 to €100, 000. Payments can be made either to Cretan Life in the UK, or to our locally based company in Crete.

For your guidance, you should allow approximately 10 - 12% of the purchase price to cover legal fees, land titles and purchase fees. Also, approximately €11, 000 for a 100 m² building permit, and €20, 000 for a 200 m² permit (including architectural designs).

If you wish to make a purchase, a solicitor will take you through all the legal procedures and open a bank account for you. The solicitor can also arrange a mortgage for you – either to purchase the land, or purchase the land and also build on it. If you are purchasing a number of plots, a Greek accountant is a necessity. We can make recommendations should you require.

Each plot of land comes with permission to build up to a certain square meterage which can be utilised in different ways. For example, if you purchased a 4,000 m² plot with permission to build on 200 m², you could choose any of the following options: build 1 x 200m² villa; build 2 x 100 m² villas; build 4 x 50 m² villas. Or, an architect can advise you on other combinations. Note that pools and landscaping are not considered in the permissible build amount, nor do basements.

In certain cases, land you purchase could possibly be subdivided into smaller building plots. However, our engineers would have to first advice on feasibility.

We encourage investors to come and see for themselves the attractions of Crete and the various locations of the land available for sale. If this is not possible, for an agreed deposit we will hold the land you are interested in until you reach a decision on purchase.

Land in Crete can be built on either for your own use, for rental lettings to generate income, or to sell on and maximise your investment. Cretan Life can even help you with any building project, from the first ideas to the finishing touches.

All construction work in Crete has to adhere to certain quality standards, and be carried out under strict guidelines and checks.

So, should you wish to build on your land, we can recommend a choice of three respected architectural practices. After approval of plans and specifications, we can also recommend three local construction companies who will tender very competitively for the work. We’ll even introduce you to a qualified engineer who will project-manage the building work.

We have researched building costs in Crete very carefully over the past few years. From this analysis, we are confident that a villa can be built to a high standard for approximately €1, 200 per square metre including VAT and IKA (Social Insurance/Social Security for the workers) – but excluding building permits, pool or landscaping. It should be possible to install a reasonably sized pool (say about 25m²) for around €30, 000 including filtration system and the separate building permit that is needed.

Note that with regard to VAT, when you buy a finished house you pay 19% on both the finished house and the plot of land. Whereas, when you own a plot of land, you only pay 19% VAT on the materials to build the house, and no VAT on the plot.

To fund the construction, as with purchase of the land itself, we can advise on obtaining mortgages from a Greek bank. Once a property is built, we can also advise on creating an income through rental and helping to acquire the necessary EOT license. Also, EOT licenses can be obtained during the construction or even applying for it as soon as the building permit is issued.