Real estate development: Luxury small villas in Chiona, east Crete
We would like to present to you some information regarding our Chiona project. We hope that we will find other people enthusiastic about development of outdoor activities in combination with a real estate project. Why we do not want to buy some ready villas? Because such villas do not exist in east Crete in our points of interest. If there are some, they are offered at prices that do not seem reasonable to us. We want to make our own villas that best fit our requirements. We prefer modern trends, top localities, not far away from beaches ( because of bathing and spots suitable for water sport activities like kayaks, kitesurfing and paddleboarding and close to canyons because of climbing, canyoning, via ferratas, slackline. We believe that east Crete is perfect for all of these activities, perfect for tourism with its clean beaches and thus ideal for investments.
Here is the map of Chiona area, you can see the position of our plot in Chiona bay.
In October 2019, we have done vast research on the internet regarding properties for sale in Crete. The average price of houses for sale in Crete that I found (79 homes). The old houses for renovation and ruins were not included. The focus was on newer apartments and villas. There were no restrictions set in filtering, so there are houses both from the central part of Crete ( in a significant distance from the sea) and homes lying in the villages close to the sea, houses 1-50 years old, with or without swimming pools. The average price is 2.226,-/m2, median price of 2.250,- Eur/m2. When you take into account only the upper 1/2 of this set of properties, then the average cost is 2.795,-Eur/m2, and median is 2.590,-Eur/m2.
However, such a research cannot be representative of the segment of new, luxurious stone villas with swimming pools. If you want to get an idea about prices in this segment of the market in Crete, you have to dig deeper. You must try to find this type of property in the market, that is for sale. And we did just that.
Another examples of high-end villas:
We have also prepared economic calculations, where we tried to evaluate our project. There are reserves included. We hope our costs will be lower for at least 10-12%. Here are the results.
Second test shows, what happens when the cost drops from 3.600,-Eur/m2 to 3.000,-Eur/m2.
What are the results of these calculations?
1. If the selling price reaches only 3.000 Eur/m2, (so slightly above median), the rentability is very low (1%p.a.), unless there is a subsidy from the investment program ESPA up to 50% of investment costs. The rentability with ESPA (sales-costs/costs) is 8,3% p.a., however in this case developer is obliged to operate villas for rent at least five years after ESPA.
2. Our plots are superior. They are positioned in a secluded place with absolute privacy, surrounded with beautiful greeny hills, 100 meters from the beach of Chiona. We think that the price of 3.000,-Eur/m2 is very low for such a place, 3.600,- is quite realistic.
4. The variant with selling price 3.600,- Eur/m2 already ensures profit 8,8% p.a . It does not include ESPA, means no rental operations, and sale will be made after finishing the villas- after two years.
6. Besides an economical part of the project, you must take into account also other benefits, why we want to do business in Crete. We want to improve our lives, our health, get new impulses, new motivation.
Our investment scenarios:
1. Investor joins us by entering in our joint-stock company Crete Property a.s. ( based in Czech jurisdiction) . This company implements our plans. Profit is distributed per share. Stockholders can buy villas after finishing the project, which is either two years ( without ESPA subsidy) or seven years ( with ESPA).
2. An investor wants to make the whole investment alone on behalf of his name or company. In this case, we can assist him and provide management of the project, including building permits, suppliers evaluation, and selection, signing contracts, etc.
3. An investor wants to buy a ready villa for a market price.
RNDr. Petr Fiala
Crete Property a.s.
Babice nad Svitavou 321
Tel: 00420 603179357
Web: www.kretadomy.cz, www.climbcrete.com
Our videos: https://www.youtube.com/channel/UCAXFZEmTGgPFas240dKlIuA?view_as=subscriber
We prepared this document also in PDF format and in Powerpoint, send me an e-mail and I will send the document to you.