A comprehensive guide for prospective land buyers in Chania, Crete by ARENCORES, Chania Real Estate Experts. Discover the best locations, investment tips, and key insights for successful land property purchases in this idyllic Mediterranean region.
Buy Land Plots in Chania, Crete in an Unrivaled Position
Nowadays, many Chania land plots are available for sale. However, many people interested in investing in the Chania real estate market – and in Crete in general – may know what type of land they want but are unsure how to begin the acquisition process.
To assist with this, ARENCORES provides a dedicated and comprehensive guide for investors and property buyers wishing to invest in Chania, Crete, or elsewhere on the island.
We Assist You in Making Fruitful Investment Choices
People invest in real estate or buy land plots for various reasons, such as purchasing building land for sale or developing property for residential or commercial purposes to capitalize on the excellent summer rental market. According to RESTful – our Big Data Analytics platform – there is a growing interest in land plots for sale in the Prefecture of Chania for self-build projects, recreation, or touristic development.
Our highly experienced real estate agents and investment consultancy team offer unique and aspiring investment opportunities for our clients in the most desirable locations in Chania, Crete. We aim to identify, evaluate, and prioritize the best property and real estate options in Chania, Crete, for our investors.
However, as with other types of property investments, profitable land investment requires thorough due diligence. Let’s explore how to invest in land, why you might want to, and important things to know before purchasing a land plot in Crete.
Since we first published this article in March 2019, we have received numerous emails from foreign buyers—both those who have already bought plots or investment land and those about to purchase a piece of land somewhere in Crete.
Although Greek law clearly outlines building permissions and planning zones, it is evident that some developers continue to violate these regulations at the expense of unsuspecting property buyers, particularly foreigners.
Unfortunately, these unethical practices have led to another significant issue: some buyers, unaware of the latest building regulations, now face the prospect of having their property views obstructed by illegal structures built in front of them.
Be careful out there!
The Hellenic Cadastre is a unified and constantly updated system of information that records the legal, technical and other additional details about real estate properties and the rights on them; this information is kept under the responsibility and guarantee of the State.
The development of the Hellenic Cadastre aims at the creation of a modern, fully automated real estate property record, whose details are of an evidentiary nature, ensuring the best publicity and security of transactions.
It is a significantly more modern and complete system than the old system of Registrations and Mortgages supported by the Land Registry Offices. Specifically, the Hellenic Cadastre:
Currently, there are numerous Chania land plots for sale available. However, investing in a plot of land can be a substantial yet highly rewarding venture with various potential uses. Versatility, longevity, and appreciation often make land property investments relatively safe, reliable, and profitable over time.
Vacant land refers to a plot without any existing construction or equipment. It holds potential for development into commercial or residential real estate, farmland, ranches, or the utilization of natural resources such as minerals, water, or wind rights.
When you invest in land, you acquire raw, untouched terrain that has not been developed or prepared for construction. Essentially, it remains in its natural state. The land’s zoning designation is crucial for potential buyers as it determines the allowable square meters for future development, whether commercial or residential.
There are seven main categories of land properties:
For those seeking Chania land plots for sale, understanding the term “Land Use” is crucial. “Land Use” refers to the permitted building type or usage in a specific area. Zoning laws vary from district to district, and sometimes a single district may be zoned for multiple uses.”
Currently, there are some exceptional Chania land plots for sale. But what do all these terms in the property descriptions really mean? According to Greek urban planning legislation regarding land use, zoning, planning, and building regulations, plots are characterized by the following factors:
Building Capacity in Greece: Refers to the building restrictions that stipulate a plot of land must comply with specific planning requirements and certain conditions, such as possessing the minimum surface area or required length of facade. If these conditions are not met, the plot is unsuitable for building. These conditions vary from region to region.
Permitted Building Area: Indicates the total allowed building area on a plot, measured in square meters, plus basements and verandas.
Building Ratio: A number which, when multiplied by the total size of a plot, gives the total square meters allowed to be built within the city limits (the “Permitted Building Area”). Underground spaces and verandas are not included in this total.
Example: A 1,000 m² plot with a building ratio of 0.6 means the Permitted Building Area is 1,000 m² x 0.6 = 600 m², plus basements and verandas.
Coverage Ratio: A number which, when multiplied by the total size of a plot (in square meters) within the city limits, gives the maximum area of ground that can be covered by a building structure.
Example: If a plot measures 1,000 m² with a building ratio of 0.8 and a coverage ratio of 20%, then the plot can accommodate a building structure covering 20% of its ground-level surface area (or 200 m²). Since the building ratio is 0.8, this allows a building of 800 m² in total. The remaining 600 m² can be built on levels above ground, provided these do not exceed the maximum ground cover level of 200 m².
Building Height: Refers to the allowed height of a building structure. This number varies depending on the region and the plot location.
Land Use in Greece: Indicates the building type or usage allowed in a particular area. Zoning laws vary depending on the region, and in some cases, a single district may be zoned for more than one use.
Counter-Performance in Greece: A type of contract where the owner provides their plot/land to a construction company that undertakes to build at their own expense. The company offers a percentage of the building back to the owner of the plot/land. The rest of the building remains the property of the construction company.
Just as there are several ways to invest in residential or commercial property, there are multiple methods to invest in land. ARENCORES presents some common practices for those interested in Chania land plots for sale. You can discover publicly listed plots or our exclusive off-market properties.
Some real estate investors prefer to acquire land with the intent to hold it for an extended period. They might plan to undertake a development project in the future or wait for the demand for plots in the area to increase, thereby raising the land’s value. However, during this holding period, the investor is responsible for annual taxes and property maintenance.
If the goal of purchasing and owning land in Crete is to create a passive income stream, the landowner can lease the land to a third party. For example, if an investor owns a large plot in the Apokoronas region with a productive olive grove, they can lease the land to a local farmer. The farmer pays monthly rent and maintains the land, providing the investor with residual income.
Another viable option for creating a passive income stream is to sell the land after a short period. Investors can make a significant profit with this practice. Although economic uncertainty and the effects of COVID-19 have caused a cool-down in Crete’s property market, the island remains a hotspot for both overseas and domestic real estate investors.
Land flipping is a popular method of investing in real estate. It involves buying land at a low price and selling it later for a higher price, yielding good returns. While it can be as simple as buying low and selling high, some of the largest returns come from improving the property to enhance its marketability. Adding value in this way makes the property much more appealing to potential buyers.
ARENCORES is here to assist investors and property buyers in making informed and profitable investment choices in Chania, Crete. Our experienced real estate agents and investment consultancy team bring unique and promising opportunities to our clients in the most desirable locations.
You might assume that if two properties have the same characteristics and size, they would be considered equal in terms of value and appeal. However, this is not always the case. For example, a 3,000 sq.m plot in Almirida, Apokoronas with a building permit for a 400 sq.m construction costs significantly more than a similarly sized plot in Drapanias, Kissamos.
Environmental factors, building regulations, planning zones, building permits, and other considerations play a crucial role in determining the overall value of a property.
When evaluating a piece of land, it’s essential to ensure the property can be developed or used for its intended purpose. For instance, a property near the naval base of the Hellenic Navy and NATO at Souda Bay could be subject to several restrictions, making development difficult or impossible.
In addition, always conduct thorough and comprehensive due diligence on the following aspects:
By considering these factors, you can make a more informed decision when investing in land properties in Chania.
Depending on the type of property investment, it may be critically important to request a feasibility study done before buying a land property in Chania to determine if the proposed development is economically and technically feasible on that plot or in that location.
Even with accurate due diligence, there is always a possibility not exposed all the aspects of the property or the unexpected expenses that could arise during the development-construction process.
While there is no denying – for those who do know the ropes – that land investments are a riskier investment, these properties can be exceptionally profitable as well. This investment strategy can get complicated but ARENCORES can facilitate your decision making with reliable and detailed research works and assessments to help you identify the right piece of land at in an unrivaled position with the highest ROI potential.
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