ARENCOS SimpleMind Series - Building a House in Crete Guide

SimpleMind Series

Building a House in Crete: The Initial Steps

Building a new house in Crete, Greece can be a very rewarding experience and needn’t be difficult, complex, or confusing. Most people struggle with their first new build project because they are uncertain of the process, so we have developed this guide to let you know what you can expect during the process of building with ARENCOS.

Building a House in Crete. A Step by Step Guide.
Photo by Di on Unsplash
Building a House in Crete

Critical Considerations

You don’t need to know exactly what you want before meeting with builders or your constructor. The first thing a builder or a constructor will ask you is, “What are you thinking? What style do you like? One level or two? Walk-out basement? Swimming pool? An attached garage?”

However, the process of building a new house in Crete, Greece long before the foundation is poured. The construction process performance, time, and effectiveness should be much more efficient and exciting if you first develop a consistent and reliable project management plan and find an honest, experienced and trustworthy builder or construction company.

You’re thinking to build a new house in Crete, Greece. Which do you do first, select a real estate agent or select an architect?

Both approaches have merit. If you really know everything about the area, a consultation from a real estate agent may not make sense for you. Having an idea of the architectural style you prefer will determine the size, location and characteristics of your building site.

Building a House in Crete - Decision Making

01. Project Involvement

Before you even select your construction firm to see what we do, you should have an accurate and holistic idea of whether you can afford to build a house in Crete and how much you really want to be involved in the building process.

Moreover, it is very important to select a professional in the real estate market of Crete to help you in your property search and facilitate your decision-making in a transparent and ethical way.

Not all vacant land in Crete, Greece is the same. From waterfront land to large plots near the major cities of Crete, there are many critical parameters to consider. Land acquisition is full of risk and can be a convoluted process laden with bureaucratic complexities.

At ARENCOS we see the process of acquiring land in Crete as much an art form as it is a science.

Through the lessons learned from the past, a commercial real estate transaction is completely different from the acquisition of land for residential use, and thus follows a much different method for success.

Building a House in Crete – Location

2.0 North or South Crete?

From Elounda to Zakros and from Loutro to Palaiochora Crete’s regions are very diversified and they can offer spectacular real estate opportunities for the potential buyer or investors.

You can decide if you want to live by the sea, in the countryside, or in the mountains. You can even decide if the Aegean or the Lybean Sea would be your everyday view from your balcony.

There are many different types of properties to choose from at various prices: from newly built apartments and maisonettes in Chania, Heraklion, Rethymnon, and Agios Nikolaos to luxurious villas, family homes, and tourism facilities – commercial properties.

Depending on the type of lifestyle you are looking for, some of the best places to invest in real estate in Crete are Chania Old Town and modern city, the spectacular district of Apokoronas with its wonderful villages such as Almirida, Vrisses, Plaka, Kalives, Georgioupolis, Vamos, Kournas and Kokkino Chorio.

Once your decision about the real estate partner – who will suggest the most ideal and hassle-free property to you – has been undertaken, you need to visit the area of your interest and realize what the site and neighbourhood look like.

It is also strongly recommended to explore the entire area to discover more alternatives, if any, that may also satisfy your needs and budget.

Rimmed by more than 1,000 kilometres of coastline, and with spectacular beaches backed by impressive mountains and gorges, Crete is unlike any other place on Earth. Living in Chania Guide from ARENCORES is a piece of very useful information to discover the area.

My Place In Chania- Real Estate Services in Crete, Greece

Leading Sustainable Development

To exploit the potential of value creation, we strive to deliver sustainable, yet reliable real estate solutions by harnessing extensive data and market insights to execute on all aspects of a property’s purchase lifecycle and drive better results.
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Building a House in Crete - Financing

3.0 Your Financing Options

Crete has become a popular destination for private property purchases, investments and even immigration, especially among West-European pensioners seeking inexpensive, yet safe and high standards of living.

The recession in the Greek real estate market since the recent economic crisis has made those opportunities even more reasonable and potentially lucrative.

Once you’ve decided that building a house in Crete is the right choice for you, the next step is figuring out how you’ll pay for all the expenses. Unless you can pay for the entire project with cash, you’ll likely be looking for a construction loan/ mortgage.

Getting a construction loan is often more complicated than getting a mortgage for a real estate purchase, as you’re borrowing money for a theoretical-hypothetical concept and not a physical house.

You’ll need to provide your lender with a proficient timetable, reliable budget, floor plans, materials and equipment needed and extensive details to be considered. Other things to know:

  • Usually, construction loans have variable rates that are often higher than typical mortgage rates.
  • A 20%-30% down payment is usually required.
  • The loan can include the land you’re purchasing or it can cover only the construction costs if you already own the land.
FUNDING & FINANCING SERVICES

Available for real estate assets purchases, renovation works and new construction projects

  • Loans are available in Euros only.
  • Available on a Capital & Interest repayment basis
  • The maximum loan to value for a purchase is 70%.
  • The maximum term is 25 years – available to age 75.
  • The minimum loan amount is €25,000

All schemes require full documentary evidence of income – and a personal Tax Identification Number (TIN).

Funding and Financing Advisory by ARENCOS Consultants
Funding and Financing Advisory by ARENCOS Consultants
Building a House in Crete - ROI Potential

4.0 Is it Worth Buying a Property in Crete?

It is absolutely worth buying property in Crete for several reasons. Not only because of the opportunities Crete has to offer itself, the outstanding quality of life and affordable cost of living, but also of its exceptional investment returns and the opportunity to get residency in one of the most wonderful countries in the world.

The property market in Crete is white-hot—and neither the COVID-19 nor rising property prices can put out the flames. According to our research property purchases have steadily increased year-over-year since June 2018 as real estate assets continue to get more expensive across the country.

However, investing in real estate is a terrific idea if you are in it for the long haul, not a quick return.

Especially if you are a first-time buyer, your best bet is investing in residential properties near the popular tourist resorts or the big cities such as Chania, Heraklion Rethymnon, and Agios Nikolaos that produce rental income year-round. 

Just make sure you understand all of the associated legal fees and are prepared for unexpected costs.

Is Buying a Property in Crete a Good Investment?

We asked 45 property purchasers. Here’s what they said.

Building House in Crete - Restrictions

5.O What are the Restrictions & Property Rights in Greece?

The right to property, as a fundamental right, is under the protection of the State, as provided in the Greek Constitution, Article 17, whereas it is stipulated that property rights cannot be exercised against the public interest.

Within this context, the Constitution imposes a restriction or deprivation of property (expropriation) for the sake of public interest, always under the prerequisite of a prior compensation of the owner.

Furthermore, the most significant source of property law lies in the third book of the Civil Code (articles 947-1345). Other provisions and property law rules exist in other books of the Civil Code, and the Code of Civil Procedure, as well as in various special laws.

The Rights in Real Estate

Real estate property rights, i.e. rights that provide to the beneficiary direct and absolute power, are the ownership (article of C.C 999),  the servitudes  (articles of C.C 1118), and the mortgage (article of C.C 1257). Furthermore, the following distinctions are also met:

– the full ownership, which constitutes a universal real right. It may be absolute (100% ownership of the property) or joint ownership (ownership belonging to two or more persons, i.e. the joint owners).

– the bare ownership, which is a limited real estate right and constitutes a part of full ownership, as the bare owner lacks the advantages of the usufruct, which means he cannot use or exploit his property. Usufruct, if not otherwise determined, is inactivated when the usufructuary dies.

Following the death or resignation of the usufructuary, the usufruct is unified with bare ownership and the bare owner becomes full owner of the property.

Chania Property Buyer Help and Resources
View ARENCORES Help & Resources
Buying a Property in Crete
What’s the Approximate Cost of Different Properties in Crete?
Building a House in Crete - Land Asking Prices

What’s the Approximate Cost of Land Plot Properties in Crete?

The cost of property in Crete is largely dependent on the type of property, the features and benefits of that property (the value), the overall real estate market, supply and demand, and what other similar properties have sold for in the same condition and size.

This table will give you a general idea of prices in various areas of Crete.

Once you have discovered a promising building site for your new house in Crete, spend some time on the site. See the boundaries of the plot, smell the flowers, feel the atmosphere, hear the sounds and walk the full length of the building site at different times of the day.

Building a House in Crete – Questions

6.0  Questions to Ask Yourself

Building a house in Crete: Initial Steps – FAQs

Once you have discovered a promising building site for your new house in Crete, spend some time on the site. See the boundaries of the plot and walk the full length of the building site at different times of the day. If you prefer a more holistic assessment, think about ways the building site will influence the shape, views and style of your new home. Ask yourself:

What are the general characteristics of the land? Is it green and flat? Rocky with steep terrain?

Are there any other geological characteristics or morphology parameters that might affect the design or placement of your home?

Will the prevailing colours of the surroundings change with the seasons?

Does the landscape suggest particular materials, style and colours you might include in the design of your new home in Crete?

Are other buildings in close proximity within the plot?

Can other residential properties or other structures be clearly seen from the building lot?

What is the prevailing architectural style in the area?

Will the size of your proposed property be proportionate to the size of the lot?

What is the building coefficient factor? Can you construct a 200.00 sq.m building or 400.00 sq.m with additional outdoor spaces?

How the overall accessibility is in the area? Is the main road or the National road that connects the area nearby? Is there a street or road nearby?

Should the house face toward or away from the road?

Where are the loveliest views? Where does the sun rise and set? Can you see the sea or the mountains?

Which views would you like to see from the living areas of your new house? From the living room? From the bedrooms?

Where should windows and doors be placed? Will preparing the land for building and planting trees or flowers?

If you are in a small village of Apokoronas, Chania, how important is it to face the sea or the White Mountains?

If you building lot is located in one of the charming villages of Kissamos will a northern exposure help you save on heating costs?

How much landscaping will be required?

Will the construction of a swimming pool or an underground parking add to your final costs?

Get in the loop for Chania Off-Market Properties
Buyers can now discover exclusive Chania off-market properties for sale before the masses. And, be the first to know about them! We introduce a Passive Listing approach that replaces ‘search’ with properties that match perfectly with your criteria, needs and budget.

Make Property Buying Easier

 

1. Find Relevant Housing

We search, identify and propose relevant properties in the area of your interest that match your needs and criteria.

2. Deep Inspection & Reporting

We are inspecting the property you are interested in to tell you about its features and condition and give you a sense of the local area.

3. Negotiate the Agreement

Under, reliable and trustworthy data we proceed to contract and asking price negotiations so that you get the best possible deal.

4. Complete the Purchase

We provide dedicated services so that you can safely move into your new home in Chania, Crete.

Help & Information