Hidden treasure: The Peloponnese peninsula is a buyer's paradise

Stretching like a hand into the Mediterranean, the Peloponnese peninsula is a huge area of beautiful mountains, beaches and forests just two hours' drive from Athens. Its location means that plenty of Greeks arrive each summer to soak up the relaxed lifestyle of its small resorts and inland villages but, compared to Greek islands such as Crete, Corfu and Rhodes, the area sees far fewer tourists from overseas.

The peninsula hit the headlines last year when fires raged in the south of the area. However, the flames only affected a small part of the region's 21,500sq km and reconstruction there has already started.

Technically, the Peloponnese is an island, since the construction of the Corinth canal in the 1800s, but it's always referred to as a peninsula and is connected to the mainland by road and rail bridges that make access from the capital a doddle. There are plenty of beaches and coves, fishing villages and resorts, and the names on the map are deeply romantic: Arcadia, Mycenae and Sparta are all here in a region brimming with ancient wonders, including the sacred site of Olympia.

British-born Alex Calothis, who owns agency Dreams of Greece, with his wife Sarah, has settled near Nafplio, a town on the eastern side of the peninsula that's packed with heritage buildings and was the first capital of Greece. He says he's seeing more British buyers though not in such high numbers as other locations. This surprises him as he thinks the Peloponnese is easily accessible and has a wealth of culture and history, plus good-value properties.

For a good selection of property Calothis recommends Asini, Kiveri, Xiropigado and Agios Andrianos where it's possible to buy well-priced properties and building plots with sea views. Old farmhouses with land cost from around £55,000, with a renovated house costing twice that, depending on location and standard. New properties are sought-after, as most Greeks – and a growing number of overseas buyers – want somewhere with little maintenance. A budget of around £160,000 should buy a two-bedroom house in a good location near the sea. Larger properties start from £300,000.

To get right away from it all, you'll need to strike out towards the west coast and the long, sandy beaches of Messina and Laconia.

Brian King, of local agency Theasis, says the region offers miles of gorgeous beaches and pretty towns but suffers from poor infrastructure. But, he says, this is set to change soon with major improvements that will cut journey times and boost visitor numbers. As a result, property here is expected to rise in value, however, prices are still fairly reasonable at present. Away from the coast, older homes in need of work, small two-bedroom bungalows and unfinished new-builds can be found from around £70,000.

King says small holiday homes with sea views start at around £115,000, while new villas with three or four bedrooms start from £160,000. Here it's rare to find property located directly overlooking the beach but King says seafront land is available. He currently has two acres near the popular and pretty village of Koroni for £240,000.

For the moment, though, the Peloponnese mainly attracts those wanting to enjoy the simple and traditional Greek way of life. "The Brits who buy here don't want resorts with chip shops and pubs," says King. "They come here because it's almost a forgotten corner of Greece."

Dreams of Greece: www.dreamsofgreece.com, 00 30 27520 97176;Theasis: www.theasisproperties.gr, 0796 848 5070

Buyers' guide

* EU citizens can buy in Greece but need a tax number, known as an AFM, available from the local tax office.

* Land is sold in stremmas, with each stremma measuring 1,000sq m.

* The size of property you can build depends on the location and size of the plot. Rural properties of 200sq m need a minimum of 4,000sq m of land.

* Old properties or land that has been passed down through families may have issues regarding ownership. Your lawyer should check title deeds thoroughly to determine whether the vendor has the legal right to sell the property in question.