A transformative real estate development in Elounda is set to reshape Crete’s property market, ushering in a new era of ultra-luxury living and international investment that positions the island as a premier Mediterranean destination for high-net-worth individuals.
This latest mega-development represents another significant transfer of Greek coastal land to private interests, continuing a pattern of landscape transformation in the name of tourism expansion. As traditional communities and natural environments give way to exclusive resorts and branded residences, questions arise about the long-term cost of this development model for Greece’s cultural and environmental heritage.
The Elounda Hills Project: A €800 Million Game Changer
The centerpiece of this transformation is the ambitious Elounda Hills luxury resort, developed by Mirum Group in partnership with 1 Hotels. This groundbreaking project represents Crete’s first branded residences development and stands as one of the largest luxury resort projects in the Mediterranean region.
Project Milestone Achieved
In November 2024, the Elounda Hills project reached a critical turning point when it received comprehensive approval from the Greek state. This official green light, published in the Government Gazette, covered essential elements including town planning, zoning regulations, environmental guidelines, and infrastructure development, enabling the project to advance to construction and building permit phases.
Key Development Features
The scale and scope of Elounda Hills includes:
- Total Investment: €800 million, making it one of Greece’s most significant real estate ventures
- Development Size: 138-acre integrated eco-resort
- Accommodations:
- 5-star hilltop hotel with 123 rooms
- Boutique marina hotel featuring 14 exclusive rooms
- 257 branded residences, villas, and mansions available for purchase
- Amenities: Two exclusive beach clubs, state-of-the-art watersports center, dedicated kids and teens clubs
- Dining & Retail: Retail piazza with a dozen restaurants and bars, comprehensive spa and wellness center
- Marina: New world-class marina operated by Camper & Nicholsons Marinas, capable of accommodating superyachts up to 90 meters
- Cultural Features: Amphitheater, botanical garden, and extensive supporting infrastructure
Market Response and Sales Activity
Since its official launch in summer 2023, Elounda Hills has reported €130 million in property reservations. This initial response indicates demand among wealthy international buyers for branded luxury residences that promise not just premium real estate, but access to managed lifestyle services, rental programs, and exclusive brand privileges.
Sustainability Claims and Environmental Considerations
Addressing Crete’s Water Challenges
Amid Crete’s ongoing water shortage issues from consecutive dry winters, developers of Elounda Hills have outlined various environmental measures:
- Independent Water Supply: Installation of desalination plants to reduce reliance on local freshwater resources
- Advanced Recycling: Integrated water and waste recycling systems supporting both sustainability and luxury standards
- Eco-Friendly Landscaping: Carefully selected low-water-consumption plantings with optimized irrigation systems
- Pool Infrastructure: Private and shared pools supported by the development’s independent water systems
Design Approach
The project aims to blend contemporary luxury with traditional Cretan elements, according to the leading Greek and Italian architectural firms involved in the design. The development plans to incorporate local stone and eco-friendly materials, while proposing a farm-to-table culinary program intended to support local producers.
Construction Timeline and Phases
Current Status (May 2025):
- Land acquisition and strategic planning completed after nearly two decades of preparation
- Infrastructure works including roads and utilities are actively underway
- Building permits for residences and hotels are being processed
- Marina and beachfront amenities are under construction
Projected Completion Schedule:
- 2027: Soft opening of marina and initial amenities
- 2027-2028: First phase completion including marina, beach clubs, boutique hotel, and initial residences
- 2028: Main 1 Hotels flagship hotel and majority of branded residences
- 2032: Full resort completion
Broader Market Impact on Elounda and Crete
Property Price Leadership
Elounda has established itself at the pinnacle of Crete’s real estate market, with 2025 average property prices ranging from €3,000 to €4,500 per square meter, significantly outpacing other regions across the island:
- Elounda/Agios Nikolaos (Lassithi): €3,000 – €4,500 per m² (luxury segment)
- Lassithi Prefecture (overall): €1,974 – €2,625 per m² (Q1-April 2025 average)
- Chania: €2,500 – €3,500 per m²
- Heraklion: €1,800 – €2,500 per m²
- Rethymno: €1,700 – €2,400 per m²
- Southern Crete: €1,200 – €1,800 per m²
Additional Major Investments
The momentum in Elounda extends beyond Elounda Hills, with the Sbokos Hotel Group developing the Rosewood Blue Palace project. This luxury complex, operating under the prestigious Rosewood Hotels & Resorts brand, is scheduled to open in 2026 and will feature 573 rooms and 44 furnished residences with extensive wellness facilities.
Infrastructure Enhancement
The upcoming Kastelli International Airport, opening in 2027 and located just 20-30 minutes from Elounda, is expected to further boost accessibility and drive increased demand for luxury properties in the region.
Impact on Authentic Crete
While the Elounda Hills agreement and similar high-profile investments represent significant economic activity, they also raise important questions about the direction of Crete’s development. These ultra-luxury projects, designed primarily for high-net-worth international buyers, mark a shift away from the island’s traditional character and accessible tourism model.
The transformation of areas like Elounda into exclusive enclaves may bring increased property values and international attention, but it also risks creating barriers between visitors and the authentic Cretan experience that has drawn people to the island for generations. As these developments cater to an increasingly affluent clientele, local communities and traditional businesses may find themselves priced out or overshadowed by branded luxury experiences.
As construction progresses toward the 2027 opening, the long-term effects of this shift toward ultra-luxury development will become clearer, potentially setting a precedent for how Crete balances economic growth with preserving its cultural identity and accessibility for diverse visitors.
Published on May 30th, 2025
Further reading:
Diktaeon Cave Remains Closed Throughout Summer 2025: Visitors Urged to Adjust Travel Plans
Greek Ministry of Culture Announces New Pricing for Crete’s Historical Sites Starting April 2025
Changes Coming to Kourtaliotiko Gorge in 2025: Limited Access, New Fees, and Swimming Ban
