The top investment returns in luxury hotels and villas in Greece's South Aegean islands

Α Decrease font Enlarge font
The top investment returns in luxury hotels and villas in Greece's South Aegean islandsTourist "boom" drives South Aegean property market offering investors high returns

There are 144 5-star hotels in South Aegean marking a 65.5 percent increase compared to 2011,

This is mainly a result of upgrades to existing hotels and not construction of new ones that showed only a marginal increase of 0.7% over the last 5 years.

The number of beds and bedrooms in all hotels in the region increased by 2.9% and 4% respectively, with the five-star category showing an impressive increase of 47.1% and 48.1% respectively.

These figures, along with the latest trends in the market are included in the most recent report by Algean Property.

The report concludes that many of the islands of the South Aegean represent significant investment opportunities, with high returns, to foreigners who wish to buy luxury villas in order to gain from the rise of tourist arrivals in Greece during recent years.

In 2016, the South Aegean region had a share of 18% of the total arrivals in Greece, ranking second in the country after Central Macedonia.

It also had a 21% share in total nights and 24.6% in total tourist revenue, recording the best performance in Greece while coming third in receipts per visitor (600 euros), after Crete (682 euros) and Ionian islands (612 euros).

Regarding revenue per night, South Aegean ranked second with 78 euros, after Crete (79 euros).

It also showed an average stay of 7.7 days, following the Ionian and Crete (at 8.7 days).

For the 9-month period of 2017, the region recorded a significant increase in receipts (+ 15.8%) compared to the corresponding period of 2016 and had a share 25.9% in the whole of Greece.

Visits rose by 10.4% to a 19% share, and overnight stays by 3% to a 22.3% share.

Revenue per visitor averaged € 647 (+ 7.8% from the corresponding nine-month period in 2016), revenue per night rose to € 80 (+ 0.8%) and average stay reached 8.1 days, with an increase of 3.8%.

Germans show great investment interest in buying villas 

The impressive performance of tourism in the South Aegean during recent years, has stimulated the demand for purchases and rentals of country houses and villas on the islands.

For each island separately, there is strong demand for investors from Germany, Britain, Austria and Switzerland for purchases or rentals of 3-4 bedroom villas, with swimming pool and a high level of infrastructure.

As far as Rhodes is concerned, the stock of holiday homes on the island  is set to rise in coming years due to a rise in tourism resorts but broader building activity in the sector remains low.

Algean points out that Greece's construction industry froze due to the country's debt crisis and a lack of liquidity, resulting in no major changes in the stock of holiday homes. 

In the last two years, some individual projects have begun developing, though the volume still remains low, it said.

Investment opportunities in Rhodes

Rhodes is among Greece's popular tourist destination set to see the biggest change in the quality and quantity of holidays homes on offer.  Rentals on the island are not as developed as elsewhere in the region, yet the market "possesses a certain dynamic one cannot ignore," noted Algean. 

Holiday home rentals in Rhodes offer a gross average rental yield of 5.6%, versus top performers Mykonos (8.4%) and Santorini (6.4%).

"No new developments begun the last few years in Rhodes, resulting in little changes on the island’s holiday home stock," said the report.

"However, upcoming integrated tourist resort projects on the island include the construction of holiday homes within their premises, thus increasing the holiday home stock’s quality and quantity," it added.

Mykonos and Santorini offer top investment returns

The cosmopolitan island of Mykonos is the top performer in terms of investment return, offering an 8.4 percent gross average rental yield, above its competitors in the Mediterranean Sea. Areas of particular interest are southern locations close to Mykonos Town with a focus on three-bedroom villas with a pool, high-end amenities and sea views. The greatest investment interest comes from Scandinavians, Americans and Britons. The average purchase price is € 5,000 - € 7,000 per sq m. and € 9,000 - € 11,000 per week for rent.

The iconic greek island of Santorini ranks second in the Mediterranean in terms of investment return, offering a gross average rental yield of 6.4 percent. Investors with an average budget of  700,000 euros to 1.2 million euros are looking to invest in places offering a view of the legendary island's volcano.  The average purchase and rental prices are € 5,000 - € 7,000 per sq m. and € 7,000 - € 10,000 per week, respectively. The biggest demand comes from Germany, France and Italy.

Kos is a destination where most visitors prefer to stay in a hotel rather than a villa. The average purchase and rental prices are € 2,500 - € 3,500 per sq m. and € 3,000 - € 5,000 per week, respectively. The biggest demand comes from Germany, Britain and Austria.

Paros exhibits one of the top performance returns on investment in the Mediterranean with a gross average rental yield of 6.4%. The highest demand comes from the Scandinavian countries, Germany and France, and the average purchase and rental prices are € 3,500 - € 4,500 per sq m. and € 4,000 - € 7,000 per week.

Patmos has a return of 4.8%, the average purchase and rental prices are € 4,000 - € 5,000 per sq m. and € 3,000 - € 6,000 per week. The largest investment interest comes from Germany, the US and Austria.

The table below shows the best performing gross rental yields at Greece's main holiday destinations that range from 8.4% to 4.3%.

  • Mykonos       8.4%
  • Santorini       6.4%
  • Paros             6.4%
  • Rhodes          5.6% 
  • Chalkidiki      5.4% 
  • Skiathos        5.4% 
  • Elounda         5.3%
  • Porto Heli      5%
  • Patmos         4.8%
  • Chania           4.8%
  • Corfu             4.3%

RELATED TOPICS: GreeceGreek tourism newsTourism in GreeceGreek islandsHotels in GreeceTravel to GreeceGreek destinations Greek travel marketGreek tourism statisticsGreek tourism report

Tornos
  1. 16/08 23:23

    Full moon events at archaeological sites to conclude in Greece Sunday

  2. 16/08 23:12

    Greek Ministers to meet on Monday on Samothrace island transportation issue

  3. 16/08 21:47

    Greece records impresssive primary surplus of €1.779 billion in Jan-July

  4. 16/08 21:28

    Greek hospital worker fined 100 euros for violating smoking ban

  5. 16/08 20:59

    Cyclades International Classical Music Festival on Greek island of Syros

  6. 16/08 16:38

    Full moon shining bright over Koroni castle in southern Greece

  7. 16/08 12:40

    No active firefronts on Evia island but authorities still on alert

  8. 15/08 23:04

    Greek Prime Minister attends August 15 liturgy in island of Tinos

  9. 15/08 19:53

    Dormition of Virgin Mary celebrated across Greece on August 15th

  10. 14/08 17:00

    Greek flight safety expert to win sector's top international distinction

  11. 14/08 16:14

    Urgent measures to reduce flight delays at airports in Greece during peak season

  12. 14/08 15:22

    Passenger traffic in Greek airports soars 4.7% during first seven months of 2019

  13. 14/08 13:29

    Two ferries to arrive at Greek island of Samothrace on Wednesday

  14. 14/08 11:07

    Strong winds to temporarily subside in Greece

  15. 13/08 22:01

    AP: Kevin Spacey offers poetic tribute to Greek statue at Rome Museum (video)

  16. 13/08 21:56

    Greek Culture Minister meets with Chinese Ambassador to Athens Zhang Qiyue

  17. 13/08 21:56

    Two Greek beaches among world's top-50

  18. 13/08 17:24

    Media report: Secret ‘rooftop beach’ opens in the heart of Athens

  19. 13/08 13:13

    Visitors and revenues of Greek museums and ancient sites rise in April 2019

  20. 13/08 11:31

    Wildfire raging on Evia creates smoke cloud visible from Attica

  21. 13/08 09:42

    Schinias and Marathonas beaches out of bounds in Attica on Tuesday

  22. 12/08 19:28

    US Ambassador welcomes NBA MVP Giannis Antetokounmpo in Athens

  23. 12/08 18:52

    Mayor: Elafonissos island in Greece is a safe tourist destination

  24. 12/08 18:42

    Full moon events at archaeological sites in Greece to conclude Sunday

  25. 12/08 17:59

    Unique intact Hellenistic tomb found in Kozani of northern Greece

  26. 12/08 17:34

    Minister Theocharis: New strategic plan for the development of Greek tourism

  27. 12/08 14:24

    Wildfire on Mount Hymettus of Attica Region under total control

  28. 11/08 22:18

    Perseid meteor shower to peak on Greek sky on Monday

  29. 11/08 22:13

    Greek Prime Minsiter calls for shipowners to register their fleets locally

  30. 11/08 22:06

    Temperatures up to 40C to continue across Greece on Monday

  31. 11/08 22:01

    Building permits in Cyprus record big annual rise during first five months

  32. 11/08 21:47

    Greek island of Santorini becomes a global destination for parkour (videos)

  33. 11/08 21:29

    "Snakes of Virgin Mary" appear again in Greek island of Kefalonia (video)

  34. 10/08 18:32

    Media report: Roofless room in Greek island of Crete available on Airbnb

  35. 10/08 17:52

    First traditional Greek ‘Kafeneion’ opens up in the heart of Paris

  36. 09/08 21:03

    Fifth annual Molyvos International Music Festival opens in Lesvos

  37. 09/08 18:21

    Interest grows for 'last chance' debt settlement scheme in Greece

  38. 09/08 18:15

    French Finance Minister Le Maire meets with Greek officials in Athens

  39. 09/08 17:58

    Global Health Tourism figures honored in Ithaca, the island of Odysseus in Greece

  40. 09/08 17:53

    Ecumenical Patriarch Bartholomew wins 2019 ECOS Environmental Award (video)

  41. 09/08 17:48

    New PM reaffirms commitment Eldorado Gold's investment in Greece to proceed

  42. 09/08 17:41

    Window on Greek olive oil world marks 3rd anniversary

  43. 09/08 17:26

    Greek Minister visits beach for persons with disabilities in Voula suburb of Athens

  44. 09/08 16:43

    Greek Minister: Decisions unlocking Elliniko development project within August

  45. 09/08 16:36

    Turkish Rixos Hotels to operate all-inclusive resort on Red Sea Riviera

  46. 09/08 16:32

    Greek government abolishes 'written justification' clause by employers for firings

  47. 09/08 14:53

    Popular Chinese Travel Show films on Greek Islands of Santorini and Kefalonia

  48. 09/08 14:12

    Renowned Greek sculptor Takis passes at the age of 94

  49. 09/08 12:48

    Exquisite Classical Era grave steles discoverd at cemetery on Greek island of Tinos

  50. 09/08 10:16

    Athens city opens eight airconditioned spaces on Saturday due to heatwave

  51. 08/08 21:35

    Greek Health Minister meets British ambassador to Athens Kate Smith

  52. 08/08 20:49

    Law on return of critical executive powers to mayors passed by Greek Parliament

  53. 08/08 19:31

    Cyprus Antiquities Department on collapse of Venetian Walls in Nicosia

  54. 08/08 18:23

    British travel series comedy ‘The Trip’ comes to Greece

  55. 08/08 18:01

    Parliament Budget Office: Improvement in liquidity for Greece's four systemic banks

  56. 08/08 17:57

    ”Taste of the Danforth” Street Festival in Toronto’s Greektown on August 9-11 (video)

  57. 08/08 17:23

    Athens municipality and government discuss major upgrades in Greek capital

  58. 08/08 17:14

    1st Energy Ministerial Meeting in Athens promotes environmental co-operation

  59. 08/08 13:58

    Concession agreement for marina on Greek island of Chios signed

  60. 08/08 12:49

    Greek shipping expands dominance in European Union and the world

  61. 08/08 10:17

    New 6th century BC finds by excavation works on Despotiko island in Greece

  62. 08/08 00:49

    New York City Greek Film Festival to take place between October 17-23

  63. 07/08 22:42

    Report: How Airbnb fared against top hotel chains, Marriott, Hilton and Intercontinental

  64. 07/08 22:39

    New York Euripides Summer Festival presents "Iphigenia among the Taurians"

  65. 07/08 22:16

    Enaleia: First Professional Fishing School in Greece supported by THI grant

  66. 07/08 22:05

    The Ethnological Museum of Cyprus will be closed due to conservation works

  67. 07/08 21:21

    Tom Hanks finds 'perfect car' during August vacation in Greece

  68. 07/08 18:43

    Greece moving to end long airport delays at popular tourism spots

  69. 07/08 18:16

    IATA: Air freight drops for eighth consecutive month

  70. 07/08 15:17

    Greece ranks 26th globally in water scarcity issues

  71. 07/08 13:58

    Greek Prime Minister Mitsotakis meets Patriarch of Alexandria Theodoros II

  72. 07/08 11:45

    Deputy FM for expats says Greeks in Australia a government priority

  73. 07/08 00:32

    Booking.com: Gen Z second most likely generation to volunteer when travelling

  74. 06/08 19:20

    Qatar's traditional sailboat 'Al Mubaraki' to dock at Piraeus Marina Zeas on Wednesday

  75. 06/08 17:50

    Ancient Greeks may have guided creation of China’s Terracotta Army (video)

  76. 06/08 17:28

    Greek PM Mitsotakis meets with chief of Orascom Group Naguib Sawiris

  77. 06/08 16:57

    Greek olive oil effective in the management of diabetes

  78. 06/08 13:43

    Greek Energy Minister meets US Assistant Secretary for Energy in Athens

  79. 06/08 10:08

    Greek Hoteliers Federation chief: 10%-15% drop in overnight stay rates during 2019

  80. 05/08 17:47

    Tax registry system to connect with police ID registry in Greece as of Wednesday

  81. 05/08 16:16

    Social security debtors in Greece can apply for 120-installments on Tuesday

  82. 05/08 15:56

    Greek Minister: No deadline extension for Helleniko casino concession

  83. 05/08 15:51

    Sports Tourism: Greek tennis star Tsitsipas climbs to No5 in ATP's world rankings

  84. 05/08 14:55

    Piraeus Bank completes €4.2 million property sales in Greece

  85. 05/08 13:44

    Cosco to re-submit €612 million Piraeus port master plan to new Greek government

  86. 05/08 10:55

    Mobilemoons: Newest travel trend of solo trips with a phone instead of a companion

  87. 04/08 22:54

    Tourism revenue drops by 5.8% in Cyprus during May

  88. 04/08 16:50

    Greek Ministry of Foreign Affairs sends condolences after US mass shootings

  89. 04/08 10:10

    Jazz across the water: Sister festivals in Greek island of Rhodes and Bodrum

  90. 03/08 23:51

    Greek expressionism exhibition in Athens until January 5, 2020

  91. 03/08 22:29

    Interior Minister talks expat voting with chief of Greek Community of Melbourne

  92. 03/08 14:58

    Mercouri featured at Ancient Greek Theater Festival of Carnuntum in Austria

  93. 02/08 23:09

    "13,700,000 km3" show on Greek island of Samos from August 4 to September 30

  94. 02/08 22:59

    Ancient traditions celebrated at Biddeford’s Greek Festival in Maine

  95. 02/08 18:44

    Medical Tourism: Greek Health Minister meets Israeli Ambassador to Athens

  96. 02/08 18:21

    Cyprus Minister agrees joint tourist packages with neighbouring countries

  97. 02/08 17:37

    Local authorities to provide air-conditioned havens during hot weather in Greece

  98. 02/08 17:21

    Out-of-court debt settlement mechanism to be overhauled in Greece

  99. 02/08 16:54

    National Hellenic Museum hosts event on refugee crisis in Greece

  100. 02/08 14:45

    The Bachelorette visits Greek island of Crete for season’s final episodes