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

However, investors in Greece are buying up distressed assets for redevelopment or conversion, but shy away from any greenfields

The island group of Cyclades is the top choice 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 analyzed 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.

Read more HERE