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Celebrity residents – a Mykonos case study

By Antonis Loizou

Recently in this column, we wrote about real estate and celebrities and how their “name” and ownership of units in a certain project can impact property prices.

We want to expand this to celebrity residences and their effect on property sales and prices. This time we have opted to put under scrutiny Mykonos, which has become more and more popular as a destination among the famous and well-to-do over recent years.

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Mykonos itself is a Greek island in the Cyclades cluster in the Aegean Sea. With 30,000 inhabitants (during the winter months), which rise to 100,000 over the summer period, and accommodating around 2 million tourists, it is an island where everything is exaggerated.

Of course, every destination has its own attractions and the distinguishing feature of this Aegean island is that it is barren of trees, due either to natural factors or because land has been razed by locals (who burn down any kind of vegetation in order to prevent plots from being classed as forest land and thus not being permitted to build on them).

What is interesting, however, is that the local architecture has managed to be retained due to strict planning, which encompasses everything from public WCs to hotels and other structures. Meanwhile, Mykonos’ narrow streets have their own allure, albeit that they are very dangerous at almost all times – especially at night given the fact that there is no lighting, pavements, and so forth.

It follows, therefore, that a visit to Mykonos is an experience worth visiting at least once and for those who have not been there, we provide a rough table of comparison of services (against their Cyprus equivalents) rated from 1-10 marks.

VALTE F100 EDO

As for Mykonos real estate prices, it depends on location, the quality of the view offered, the state and services of the beach and who the neighbours happen to be!

On average, Mykonos property prices near the beach that enjoy very good views, and which have some kind of a reasonable public access, may be broken down as follows:

Apartments: €4,000/sq.m. (Cyprus: €3,000/sq.m.)
Houses: €10,000/sq.m. (Cyprus: €5,000/sq.m.)
For units actually on the beach, the rough breakdown is as follows:
Apts: €10,000/sq.m. (Cyprus: €7,000/sq.m. – excepting Limassol)
Houses: €12.000/sq.m. (Cyprus: €8.000/sq.m. – excepting Limassol)

Clearly, Mykonos is not a destination for thin wallets. Not only is the accommodation luxurious, but eating out (if you go to an out-of-town destination) is an experience. A bottle of wine is, on average, €30 (the Cyprus average is €15) and going up to several thousand euros, whereas on average taxis cost €60 round trip; public transport is very cheap, however, setting you back €2½-€3/trip.

Property tax is another consideration to factor in, bearing in mind that with our own abolition of the property levy, Cyprus real estate became quite competitive. For, say, a two-bedroom apartment in Mykonos, we were informed that property taxes would reach €270-€350 p.a. Also, the let period is around five months p.a., as opposed to the average equivalent period of seven months p.a. in Cyprus. The let rates are similar to those found in the Protaras region, whereas lets must be more than 30 continuing days in order to be legal (albeit that this regulation is similar to Cyprus as well, but is not implemented in either country).

In conclusion, bear in mind also the constant winds and turbulent seas of Mykonos, which are quite a frequent occurrence, earning the island the title of: The Island of Winds, and that, due to the expense of a Mykonos visit, the stay period is, on average, four to five days (whereas the average stay in Cyprus lasts eight to 12 days). Nonetheless, a tourist’s impression in terms of expenditure is not necessarily correct, given that there must be, away from the “in” places, other worthwhile locations, both in terms of real estate and entertainment, and at much lower prices.

Antonis Loizou & Associates Ltd Property Valuers & Property Consultants, www.aloizou.com.cy, nicosia@aloizou.com.cy

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