COVID-19 is fueling a real estate market frenzy in Greece.

The COVID-19 pandemic has dealt a serious blow to Greece's tourism, but it has been a boon to many European house-hunters, turning the sunny state and its islands into the biggest buyer's market in a decade. Holidaymakers from the UK alone have increased demand for Greek property by more than 200% in the past few weeks alone, local and international real estate agents report, following growing investor interest after the UK government announced plans to ease travel restrictions a few weeks ago. In fact, interest was so strong that more than one million online inquiries were registered on the day the government announced the new travel restrictions at the end of June.

According to Britain's largest real estate market Rightmove, Greece ranks first among the most popular search destinations in Europe, after Spain, France, Portugal and Italy. According to real estate representatives, demand for property in these five popular destinations (Greece, Spain, France, Portugal and Italy) has increased by 340% compared to the figures of mid-June. However, it remains to be seen whether the surge in inquiries will lead to actual sales. Agents admit that despite the easing of travel restrictions, Brits are still cautious about traveling abroad, let alone going to Greece for real estate deals.

However, agents say German nationals are already actively buying property in Greece, similar to buyers from France, Austria and Switzerland. "The phone hasn't stopped ringing," says Hilary Dawson of Crete Homes. She adds that she already has property viewings scheduled throughout the summer months, and last week she showed a French couple a seaside mansion in the picturesque town of Agios Nikolaos on Crete.

There are no official statistics yet, but industry representatives estimate that German citizens' investments in real estate have increased by 50% in the last few months, buying large plots in the Peloponnese and million-dollar villas on islands such as Amorgos, Crete, Karpathos and Corfu - this is due to the crisis in Greece's national economy. Due to the country's heavy reliance on tourism and the industry having been paralyzed by the coronavirus pandemic, the European Union is warning that Greece's economy will shrink by 9.7% this year.

Ahead-of-schedule arrivals from Britain are expected next week when the Athens government lifts a ban on British tourists, allowing them to enter the country freely starting July 15. Apart from the nearly 4 million German tourists who vacation here annually and bring in more than 2.5 billion euros ($2.8 billion) in hard currency, Britons make up the largest group of foreign visitors to Greece.

The number of property offers on the Rightmove portal is around 5,750, of which 1,754 are in Crete and are private plots ranging from around €10,000 to over €10 million. More than 25 offers include large-scale seaside resorts, coffee bars and large beachfront plots for development. The list of offers is expected to grow to include more commercial plots and investment properties. Unless there is a miraculous rise in bookings in the coming months, up to 65% of the country's hotels will suffer potential bankruptcy, and hotels on the islands of Crete, Rhodes and Corfu will be particularly affected, government statistics show. "We are yet to see any real activity on the commercial front," says Williams. However, as the end of summer approaches and losses are taken into account, many small businesses will find no option but to sell unprofitable businesses quickly for cash, he said. Demand, supply and cash flow to the world economy are already casting doubt on the prospects of a deep global recession worse than the aftermath of the 2008 financial crisis, the Greek Foreign Ministry has warned.