Tranio-MR&H survey: Cyclades islands top hoice for hotel investment in Greece

The island group of Cyclades is the top hoice for hotel investment in Greece according to a joint report conducted as a collaborative project between Tranio and MR&H with the aim to explore international investors sentiment in the Mediterranean resort and hotel real estate market. 

The survey analysed the responses of more than 60 participants over the period of one month. The survey was taken by real estate agents, investors, developers and industry experts in the region, all partners of Tranio and MR&H.

Key findings from the report

• The majority of respondents (86%) note that the activity of international investors is increasing in the region
• Spain, Greece and Italy top the ranking as the most attractive countries for investors
• The main factors contributing to a country’s popularity among investors area stable economy and low bank charges (Spain, Italy, France), residency or citizenship by investment programmes (Spain, Portugal, Cyprus), and a growing market with high yield prospects(Greece). 
• 55% of the respondents named the Cyclades Islands: Thirа (Santorini), Mykonos and Paros as the most popular locations among investors in Greece
• 39% of the respondents believe that the Costa del Sol and other locations on the Andalusian coastline (Malaga, Marbella, Benalmadena, Torremolinos, Fuengirola) are particularly attractive
• 3/4­star hotels and resorts are the most popular investment types among international investors 
• The two main motivations for investing in hotel real estate are for personal use (as holiday/second homes), as well as portfolio diversification of investors
• 72% of respondents believe that an investment in hotel real estate in the Mediterranean becomes unprofitable because of ineffective asset management

More than half of the respondents surveyed by MR&H (57%) believe that resort and hotel real estate is the most popular, or one of the most popular, categories of investment properties in the Mediterranean region. At the same time, only 34% of Tranio’s respondents share this opinion, and about half of the respondents indicate that interest in resort and hotel real estate is at an average level versus other types of income property. In both cases, only a small proportion of those surveyed consider this category unpopular.

The factors which make a country popular among investors are a stable economy and low bank charges (Spain, Italy, France), the residence permit for investment programmes (Spain, Portugal, Cyprus), and a growing market with high yield prospects (Greece). According to some respondents, investor interest in Spain temporarily stopped increasing after real estate prices hit rock bottom and bank charges began to rise. And if we take Greece’s case, one of the respondents noted that “investors in Greece are buying up distressed assets for redevelopment or conversion, but shy away from any greenfields. The investment environment is complicated by protracted judicial procedures.

Nevertheless, if the whole bureaucratic climate improves, so will investment.” As to the locations popular among investors in Greece, 55% of the respondents named the Cyclades Islands, namely Tyrа (Santorini), Mykonos and Paros. Many also consider Athens (36%) and Crete (27%) promising, while some respondents mention Rhodes and Halkidiki. In Spain, 39% of the respondents believe that the Costa del Sol and other locations on the Andalusian coastline (Malaga, Marbella, Benalmadena, Torremolinos, Fuengirola) are particularly attractive. Barcelona is preferred by 22% of those surveyed, and the Balearic Islands (primarily Ibiza) and Costa Brava are among the other locations mentioned. Finally, Rome, Milan and Puglia were each named by 18% of the respondents as preferred destinations.

Answering the question of who are the top nationalities investing in Mediterranean resort and hotel real estate, respondents said that nationals from Russia, the United States, China and the Arab countries, and other countries of the former Soviet Union, top the list. However, both Tranio and MR&H respondents differ in their views as to the ranking of the investors regarding their nationality. According to the respondents, in Greece, real estate funds from the United States, as well as British private equities, stand out among investors.

The most popular types of resort and hotel real estate are 3/4­star hotels and resorts. Hotels top the list of Tranio respondents (33% of the votes), while resorts lead the MR&H rating (38% of the respondents’ votes).

One of the respondents said that “the concept of vacations has completely changed over the last few years. Tourists are searching for new destinations in the Mediterranean peninsula, looking for a more authentic and "local" experience. So, traditional "big" hotels are facing a challenge whereas the new type of hotels like serviced apartments, which offer a more authentic experience most of the time, are gaining ground. It is worth mentioning that a number of traditional hotels have changed into serviced apartments.”

Almost half of the respondents (46%) believe that the main reason for buying resort and hotel real estate in the Mediterranean is a desire to have their own housing where they can take a vacation. However, almost the same number of the survey participants (41%) think that investors are buying such properties to diversify their portfolios.

About Tranio

Tranio is an international real estate platform with a dedicated and independent team of analysts and real estate investment experts. The company publishes daily news, local property market reports, analysis on overseas property investors, expert advice for first-time buyers and investment tips. 

About Questex Hospitality Group

Questex Hospitality Group serves the worldwide hospitality, travel and related industries that together contribute over $6 trillion to global GDP. Through our innovative platform of targeted solutions, the group serves the sector’s entire ecosystem from tourism and hotel development and investment to hotel design, purchasing, management and operations. The Questex Hospitality+Travel Group serves every B2B segment of the industry via our proven demand generation, learning, loyalty and rewards solutions as well as our network of live events. For more information visit https://www.questex.com/markets/hospitality.

RELATED TOPICS: Greece, Greek tourism news, Tourism in Greece, Greek islands, Hotels in Greece, Travel to Greece, Greek destinations , Greek travel market, Greek tourism statistics, Greek tourism report

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