Investors Eyeing Greece for Resort & Hotel Real Estate, Says Survey

The island of Santorini is a favorite Greek destination for real estate investors.

Greece, together with Spain and Italy have been ranked at the top as being the most attractive countries in the Mediterranean for investors, according to a joint survey carried out by real estate platform Tranio and the Mediterranean Resort & Hotel Real Estate Forum (MR&H).

The poll, which looks into international investors’ sentiment in the Mediterranean resort and hotel real estate market, analysed the responses of more than 60 participants – real estate agents, investors, developers and industry experts – for a month.

According to the findings, the majority of respondents (86 percent) agreed that investor interest for property in the Mediterranean region was picking up.

The key factor winning over buyers for real estate in Greece was a growing market with high yield prospects. A stable economy and low bank charges were decisive factors for acquisitions in Spain, Italy, and France, while attractive investor visa programs attracted interest in Spain, Portugal, and Cyprus.

Source: Tranio, MR&H

The Cyclades Islands (55 percent) were a favorite Greek destination for real estate investors, with Santorini, Mykonos and Paros in the lead, followed by Athens (36 percent) and Crete (27 percent). Farther behind are Rhodes and Halkidiki.

“Investors in Greece are buying up distressed assets for redevelopment or conversion, but are shying away from any greenfield [investments]. The investment envi­ronment is complicated by protracted judicial procedures. Neverthe­less, if the whole bureaucratic climate improves, so will investment,” said one survey participant.

Paros Island. Photo Source: http://likenoother.aegeanislands.gr

Other Mediterranean destinations attracting buyers is Costa del Sol, along the Andalusian coastline.

Interest is particularly focused on 3- or 4-star hotels and resorts, with the leading reason for investment being personal use as holiday homes or as part of portfolio diversification activities.

Meanwhile, real estate funds from the US and British private equities appear to be at the forefront of interest for Greek properties, the survey found.