Greece along with neighbouring Italy and Spain have been named as the most popular countries in the Mediterranean for investors, mainly from the US and UK, who are looking to build luxury hotels and resorts.
According to a joint survey carried out by real estate platform Tranio and the Mediterranean Resort & Hotel Real Estate Forum (MR&H), the majority (86 percent) of more than 60 participants including leading real estate agents, investors, developers and industry experts agreed that investor interest for property in the Mediterranean region was picking up.
Greece was particularly attractive to real estate agents due to its growing market with high returns, whereas a stable economy and low bank charges were decisive factors for acquisitions in Spain, Italy, and France.
The Cyclades Islands (55 percent) are leading the way as most popular Greek destination for real estate investors, with Santorini, Mykonos, and Paros in the forefront, followed by Athens (36 percent) and Crete (27 percent), then 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.
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.