Greece Will Be Seeing More U.S. Buyers, Says Real Estate Director

It’s not as glitzy as Santorini or Mykonos. And that’s exactly why Costa Navarino has quietly become a favorite of affluent property investors in

Greece.
 

Set in the lush coastal Messinia region of the southwest Peloponnese, Costa Navarino’s transformation into a high-net-worth hideaway started in the 1980s, when shipping magnate Vassilis Constantakopoulos started buying up land and marketing it to fellow Hellenics. 

In 2010, the Greek developer Temes—led by the Constantakopoulos family—broke ground on the Costa Navarino project, dotting 2,500 bucolic acres with villas, apartments and hotels including a W, Westin and Mandarin Oriental. Across the resort’s five phases, apartments start at €770,000 (US$838,830); villas range from €3.3 million to €5.5 million. 

“It’s basically the development of a new destination through these distinct, mixed-use resorts, each tailored for a different audience,” said Evgenios Dendrinos, Temes’s director of real estate. Dendrinos talked to Mansion Global about multigenerational buyers, Greece’s growing appeal to foreign investors, and why the new luxury is “principle-based.”

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Mansion Global: How much have you had to educate potential buyers about this part of Greece?

ED: In the beginning, we had to promote the area more. Increasingly, more owners know exactly where it is. Either they’ve expressed interest directly on our web site, or they’ve stayed at one of our hotels and have expressed interest in real estate as a result. 

MG: Is Greece’s golden visa program [which offers residency for a real estate purchase of at least €500,000] a big incentive for Costa Navarino buyers? 

ED: The golden visa has helped sales predominantly in urban areas here in Greece and in countries like Portugal. But our project doesn’t attract buyers interested in the visa product, who tend to be Chinese and other Asian buyers. Our product is fully eligible for the golden visa, but it’s not the template project for it. 

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MG: Did the pandemic affect your sales or force you to change plans?

ED: If anything, it accelerated the desire to purchase premium real estate worldwide, and it accelerated our residential sales. We had our best year in 2020, then a short impact in 2021, then our best year ever in 2022. We’re expecting 2023 to be even stronger. We’re consistent on our long-term strategy and delivery. 

MG: Are your buyers mostly investors, or are they planning to live at Costa Navarino?

ED: It’s a mix, and the investor/user profile depends on the type of product. Our branded resort apartments are structured in a way that offers a nice balance between investment and leisure. Owners can use their apartments a few weeks a year, then place the apartment in a rental pool. A lot of apartment owners also just rent out their apartments.

In our villas, it depends on the ticket. The smaller the ticket, the more likely someone will rent it out. In higher-ticket villas, there’s less probability that someone will rent it out. An important trend here is that buyers are spending more time in their properties. Now that high-net-worth individuals can work remotely and abroad, people are staying in their villas for months at a time.

MG: Who is the Costa Navarino buyer? 

ED: Since the Greek economy came out of a big crisis, we’ve seen significant foreign investment in Greek real estate. Our buyers at Costa Navarino have been half Greek and half international. But in terms of investment, it’s 40% for Greek buyers and 60% international, who are spending more. Since there’s been improved connectivity between Greece and the U.S., we’ll be seeing more U.S. buyers. 

MG: Sustainability has been a big part of your marketing. How are you executing on that?

ED: It’s incorporated in an authentic way throughout our homes and the surrounding environment. Sustainability influences the development of our residences, with proprietary architectural design guidelines that shape the layouts, specify local flora and materials, and even regulate heights of residences to ensure views for everyone. We’re working to conserve water and minimize soil erosion. 

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MG: Is that resonating with buyers?

ED: Very much. Customers are aligning with the spirit of the place. Luxury buyers want to focus on, understand and implement sustainability. The depth at which we do things matters to our buyers. It’s not just a facade. We’ve acted as an example for the Mediterranean in terms of sustainability and its social, economic and job-creation impacts.  

MG: What’s your personal definition of luxury?

Ed: Luxury is principle-based. It’s authenticity, sustainability and being real.

This interview has been edited for length and clarity. 

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