Natalia Spigt, marketing director of NIMAX INVEST Building Management, is speaking about prices for real estate in Crete, about cost of land and restrictions on construction, about minimal budget for buying an apartment with a decent finishing, as well as the fear of the Russians to buy non-existent housing - in an interview for the portal ee24.com. 
- At this exhibition we have seen several companies offering Crete. What is unique about your properties? 
- Crete is the southernmost point of Greece and the most popular tourist destination. Many companies in Russia can offer to buy property in Crete, but we are the only company that is based in Crete and comes to Russia to exhibitions and brings its own properties. Thus, an exhibition for us, as actually for other developers, is an image component, we practically get no clients from here. Our eight-year experience of participation in almost all such events in Russia confirms it. There was an idea to completely abandon exhibition activities, but since nobody represents Crete, such decision would be wrong.

2013 was a turning point for the real estate market 

- How high is foreigners’ demand for property in Crete? 
- Three years ago, there were limitations on the purchase of real estate in the border areas of Greece for citizens from countries outside the European Union. Crete was one of these areas. Purchasing procedures dragged on, you had to wait for permission from the Ministry for 6-10 months, and it frightened people away. Crete was virtually "not promoted" in Russia then.
Now, the whole policy of the Greek government is aimed at attracting foreign investors and it is planned to make Greece a country of year-round tourism. This year there was a very strong growth of tourist flow to Crete.
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"In terms of sales, summer was successful, the demand started to grow"
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In terms of sales, summer was successful, the demand started to grow. It was influenced by abolition of restrictions on the purchase of real estate in Crete and by overcoming the consequences of the economic crisis in the world in general and in Greece in particular. Now the market is just starting to grow. 2013 was the first successful year, and I think 2014 will be even better. In Crete, by the way, prices have not fallen much, compared to mainland Greece. Houses and apartments on the secondary market became cheaper, while the cost of land with good location remained almost unchanged.

Land - the main treasure of Crete 

- What prices for housing in Crete can be called adequate? 
- It depends on location. Properties for less than €1,500 per sq.m are likely to be from old housing stock. Properties that are closer to the sea are more likely to cost more than €2,500 per sq.m. Adequate price for new housing on 2-3 line to the sea is €2,000-2,300 per sq.m in average. You can spend the same amount if you build a house yourself. By the way, it is very important that in Crete you can buy and register a plot as an individual and annual land taxes are lower than average in Europe.
Almost all land in Crete is privately owned. The state mainly owns roads, airports, mountain peaks and a small percentage of land. Moreover, in Crete there are very severe restrictions on building possibilities. Therefore, the cost of land depends not only on its size, but also how many residential meters you are allowed to build. For example, 2-3 ares in a village can cost as much as 20 ares outside the village. We should clarify that in order to build a house of 200 sq.m outside a village you will usually require at least 40 ares of land.
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"In the secondary market prices are €1,500 per sq.m in average" 
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If you build your own house, the lowest price that you can count on is €1,300-1,400 per sq.m. The only exception is an apartment constructed of prefabricated blocks: prices can be lower because the cost of construction is lower. But we are still discussing quality housing: for example, when there is not only a single light bulb and not only one electrical outlet per room, but a suspended ceiling with lighting and 5-7 outlets in the room. If you build good housing, €1,000 per sq.m will not be enough.
- €50,000 - is it the minimum amount that you should have to purchase a property in Crete? 
- Of course, you can buy a small old house for €20,000-25,000 in the mountains, but the prospect of living as a hermit in a small village does not fit many people, everyone wants to be closer to the sea. In general, we focus on different requests. For example, often there are requests for inexpensive properties in Crete for €100,000-150,000, with living space of about 70 sq.m, in a complex with full service near the sea. We are developing such offers, as well as projects for other requests as well: houses for €160,000-250,000 and €250,000-350,000.
- How much do finished apartments cost in Crete?
- In the secondary market prices are €1,500 per sq.m in average. Small studios from the old housing stock can be found even cheaper. But in tourist areas where rent is popular, prices are much higher. For example, studios of 33 sq.m, which we offered for €50,000, were sold out quickly because these investments will pay off quickly. Prices for apartments in a good complex in a nice tourist area (for example, in the area of ​​Hersonissos), on the second line to the sea, are about €2,000 per sq.m.
But prices are higher in "De Luxe", a complex which we offer off-plan now, its construction will start next autumn. The cost of land on this coast before the crisis was €2,000 per sq. m., housing prices were €4,000 - €5,000 per sq.m. Now we offer to book apartments in our complex for an average cost per square meter of €3,000, and payment starts only after laying the foundation and parallels the stages of construction. It is really a low price for such project, especially in such great location. You will not find a similar place from Heraklion to Agios Nikolaos.
I want to say a few words about the uniqueness of this project. Three buildings of the complex will be built on a plot around archaeological relics: preserved Byzantine walls that were found on the plot during the preparatory earthworks. All the archeology has already been integrated in design of the complex: the courtyard and pool with sports complex are completed with an amphitheater around the ancient walls, and it came out very nice. I think that there are no similar offers not only in Crete, but probably in the whole of Greece.

The Russians are afraid to pay for what does not exist 

- Do you have many buyers from Russia? 
- We do not have a lot of Russian buyers, we are an international company, our office speaks seven languages, most buyers are from Europe. 
- What is the difference between European clients and Russian ones? 
- For example, they are afraid to buy a "project", due to negative Russian experience. For Europe buying "off-plan" is a normal practice: here is a project of the house, the buyer can slightly modify it inside, and it is built for him. In Russia, people want to see, to feel, to make sure that the house is ready. European people are not afraid to reserve "off-plan" because the price for it is much more favorable. Besides, for some reason the Russians often need apartments in Crete on the seafront, and the Europeans are not so anxious about it and prefer a sea view from a distance of 2-3 km. It is one thing when you come to have rest at sea, and quite another when you live permanently. The Russians also often ask about a mortgage in Greece. Greek banks are now reluctant to give it, the procedure is quite complicated, you need to provide a lot of documents. But we have an opportunity to sell our properties in installments during five years at about 4% per annum, with the first installment of 30-50% of the purchase price.