Best Places to Live in Crete – Absolute Paradise!

As the largest of the Greek Islands, Crete offers a refreshing escape from the crowds that spend their  time on overcrowded neighbors like Santorini. This gorgeous, rugged Greek island is perfect for those who want to explore—whether that means hiking through dramatic gorges, downing fresh Greek salads, or simply relaxing on stunning beaches.

But because Crete is so large, it can be harder to figure out the best places to stay for your different itineraries. Pick the wrong location, and you might spend ages just trying to drive between the best places, wasting precious time you’d rather spend enjoying the island.

In this guide, I’ll help you explain the best towns in Crete for every type of traveler in 2025, covering closest attractions (that are currently open), best restaurants, and key pros and cons of each area. I’ve personally stayed in many of these places, and I’ll share real photos and quick suggestions to help you choose the perfect hotel or guesthouse—depending on the kind of trip you’re planning.

Where to Stay in Crete – Best Places to Live in Crete 2025

1. Rethymno: The Ideal Base for Explorers
2. Chania: Picture-Perfect Venetian Charm
3. Heraklion: The Lively Gateway City
4. Amari Valley: Authentic Mountain Escape
5. Spili: Mountain Town With Character
6. Frangokastello: Beach Lover’s Paradise
7. Margarites: For Culture & Craft Lovers

Where to Stay in Crete: Best Areas & Accommodations

Rethymno: The Ideal Base for Explorers

Why Choose Rethymno?

This charming town strikes the perfect balance between authentic Cretan culture and tourist-friendly amenities. As Crete’s third largest settlement after Heraklion and Chania, Rethymno offers the best of both worlds – enough infrastructure to be comfortable while maintaining its historic character.

Top Experiences:

• Get lost in the Venetian-Ottoman quarter’s maze-like alleys adorned with vine-covered trellises
• Enjoy fantastic Cretan cuisine at great prices in family-run tavernas
• Visit nearby attractions like Arkadi Monastery (27 mins) and Imbros Gorge (53 mins)
• Perfect base for exploring western Crete’s highlights within an hour’s drive

Where to Stay: Villa di Casa Maria

During my stay, this gorgeous villa won me over with:

• Spacious outdoor seating area with panoramic sea views
• Prime location near the Venetian fortress
• Easy parking (a rarity in Crete!)
• Just minutes from the old town
• Excellent air conditioning (essential in summer)
• 9.8 Booking.com rating confirms its excellence

Pro Tip: While Rethymno has beaches, serious beach lovers might prefer staying closer to Frangokastello’s sandy shores.

Chania: Picture-Perfect Venetian Charm

The Harbor District

Chania’s stunning Venetian harbor is arguably Crete’s most photogenic spot, especially at sunset. The blend of medieval architecture with lively cafes creates an unforgettable atmosphere.

Urban Conveniences:

• Best shopping options on the island
• Wide variety of restaurants and bars
• Good transportation connections
• All necessary amenities within easy reach

Top Accommodation Picks:

Serenissima Boutique Hotel (9.5/10)

• • Romantic 5-star luxury just 100m from the beach

  • Perfect for couples seeking a special stay

Artemis Rooms (9.4/10)

• • Affordable harbor-front rooms with sea views

  • Excellent value for money

Royal Sun (9.2/10)

• • Full-service hotel with pool and fitness center

  • Ideal for travelers wanting all amenities

Heraklion: The Lively Gateway City

Why Stay Here?

While often overlooked by tourists, Heraklion offers:

• Best ferry connections to other Greek islands
• Vibrant nightlife and urban energy
• Proximity to must-see Knossos Palace
• Excellent archaeological museum

Transport Hub Advantages:

• Marin Dream Hotel provides convenient harbor access
• Perfect for early morning ferry departures
• Basic but functional accommodations available

Must-Do Experience:

Visit Knossos Palace right at opening (8am) to:

• Beat both the crowds and intense heat
• Enjoy the site in relative peace
• Consider skip-the-line tickets for efficiency

Amari Valley: Authentic Mountain Escape

Off-the-Beaten-Path Charm

This collection of tiny villages offers:

• Traditional Cretan mountain life
• Breathtaking views of Mount Ida
• Complete escape from tourist crowds
• Excellent hiking opportunities

Recommended Stays:

• Amari Luxury (9.7/10): Surprisingly affordable high-end option
• Elia Meronas (9.3/10): Perfect hiker’s base with stunning terraces
• Arvanes (9.4/10): Budget-friendly with pool and mountain views

Nearby Excursions:

• Arkadi Monastery
• The beaches of Plakias
• Charming village of Spili

Spili: Mountain Town With Character

Why It’s Special:

• Quintessential Cretan inland town
• Famous lion-head fountains
• Cooler mountain temperatures
• Quick access to Preveli Beach

Accommodation Highlights:

• Heracles Hotel (9.2/10): Central location with parking
• Panorama Luxury (9.7/10): True boutique excellence
• Metochi Villas (9.2/10): Great for families or groups

Frangokastello: Beach Lover’s Paradise

Resort Highlights:

• Direct access to sandy beaches
• Crystal-clear shallow waters
• Ultra-relaxed atmosphere
• Fewer crowds than north coast beaches

Best Places to Stay:

• Kritamos Beach (9.7/10): Simple beachfront apartments
• Paradisos (9.6/10): Family-friendly with playground
• Notos Villas (9.6/10): Modern detached villas

Margarites: For Culture & Craft Lovers

Pottery Village Charm:

• 17 active ceramic workshops
• Continuing 4,000-year Minoan traditions
• Quaint cafes with vine-shaded seating
• Peaceful inland atmosphere

Exceptional Stay:

• Villa Kamelia (10/10): Rare perfect-rated property
• Spacious for groups (sleeps 12)
• Beautiful gardens and pool
• Ideal base for exploring central Crete

Each of these areas offers a distinct Cretan experience, whether you’re seeking beach relaxation, mountain adventures, cultural immersion, or convenient exploring bases. The key is matching your preferred travel style with the right location – a decision that will make all the difference in your Crete experience.