Debt-riddled Greece could be a draw for vacation home investors

In the market for an island villa?

Bargain hunters might want to look toward the Mediterranean, where the crumbling economy in Greece is apparently attracting a growing number of foreign investors seeking to capitalize on the crisis.

George Eliades, a managing partner of Algean Property, tells CNN Money inquiries on vacation homes on Greek islands have surged over the past three weeks — despite the economic instability that has the world’s stock markets on watch.

Developments regarding Greece’s status in the Eurozone is expected to be determined at a summit of European leaders this weekend. The outcome could yield pluses and minuses for investors willing to take the risk.

On the plus side, bargains could get even better for buyers if Greece abandons the euro for a new currency, according to CNN.

On the minus end, investors could see a sharp drop in property value as taxes increase to support the Greek government’s efforts to rebuild its floundering economy.

Property prices on Greek islands have dropped 30 percent since 2011, according to Eliades, while the market on the mainland continues to slide further downward.

Investors, mostly from Europe, are keeping a close watch on popular islands such as Mykonos, Santorini and Port Heli where vacation homes are experiencing dramatic price drops in the midst of the country’s debt crisis.

Buyers from the Middle East and Asia are reportedly also vying for really good deals in the troubled Greek market.

But while Greece is being touted as a “buyer’s market” right now, agents caution that holding out for better is still a gamble, adding these deals won’t be there forever.

Join Realtor Diane Brennan for That Real Estate Show Sundays at 8 a.m. on KTAR News 92.3 FM.