BUSINESS

Greece is a tourism property top pick

NIKOS ROUSSANOGLOU

TAGS: Property, Tourism

Greece has evolved into a leading destination for hotel and holiday property acquisitions as well as the development of tourism complexes, according to a joint survey by Russian property firm Tranio and the organizers of the Mediterranean Resort & Hotel Real Estate Forum, which is taking place in Greece this week.

The survey shows that investors rank Greece – along with Italy and Spain – among the top destinations for tourism investments, which constitute the most dynamic category among property investments in the Mediterranean region. Four out of seven survey participants (57 percent) said they believe investments in tourism properties and resorts are the most popular or among the most popular realty targets in the Med.

Greece’s main draw for investors is that the local market is considered a developing one and therefore offers high yield prospects. It is also viewed as offering significant investment opportunities, with buyers being able to acquire a property at a low price and reap capital gains after some renovation, refurbishment and possibly a change of use.

On the other hand, delays in the development of plots for tourism purposes constitute a counterincentive for foreign investors, meaning that despite the draws, few finally opt to make such an investment, the survey found.

The most popular destinations for tourism investments are the Cyclades islands – the choice of 55 percent of investors – and especially Santorini, Myconos and Paros. Athens is next, garnering the interest of 36 percent of respondents, followed by Crete, Rhodes and Halkidiki.

US firms and British investment funds have taken the lead among investors that choose Greece today. The type of investment preferred is tourism complexes or hotels of four stars or more, while 46 percent of investors pick the Med to have a holiday home of their own for vacations.

A separate survey by Savills International Development Consultancy, presented on Thursday at the forum, showed a 195 percent increase since the early 1990s in the acquisition of holiday properties internationally, mainly aimed at commercial utilization.

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