The weekly rental rate for a luxury holiday home in the high-end market of Myconos, in the Cyclades, jumped to 11,500 euros this year, up 1,000 euros from 2017 and topping the Mediterranean chart, according to a report published by real estate service provider Algean Property.
For its annual report titled “High End Holiday Homes in the Mediterranean,” the company studied the average gross yields for investors in high-end holiday homes across 30 Mediterranean countries, and found that Myconos, Santorini and Paros provided the highest returns in the region in 2018.
This makes Myconos a reference point for holiday home investors. The island marginally increased its results, producing an average gross yield (AGY) of 8.5 percent.
However, the report found that despite maintaining a strong performance (as in 2017 with an AGY of 8.4 percent), the data demonstrate that holiday home returns on Myconos have reached their peak.
The AGY on Santorini came to 6.4 percent for the third year in a row while Paros recorded a marginal drop from last year (6.3 percent).
Algean says tourism is by far the leading factor behind the rise in Greece’s holiday home yields, noting that in recent years the holiday home market has served as an auxiliary service to the local hospitality sector, covering the growing demand for holidays in Greece.
“This led to an increase in holiday home rental rates, which, coupled with the price correction recorded in the Greek housing market due to the financial crisis since 2008, made all major Greek destinations top performers within the Mediterranean,” it said.
The number of international tourists who traveled to Greece in 2017 (27.2 million) was up 9.6 percent on 2016 (24.8 million), which confirms the positive correlation between increased AGY in key tourist destinations in Greece and the increased numbers of visitors.
“Our research confirms that the Greek holiday home market continues to be the most attractive in the Mediterranean, offering the highest yields compared to its immediate competitors in the area,” Algean says in the report.
“The steady course of the Greek economy, coupled with the price correction in the holiday home market and the growth recorded in rental rates, mainly due to the major upturn in the country’s tourist figures, point to the holiday home market continuing to have an upward course over the years to come.”