The electronic auctions for beach rentals across the country are in the final stages of completion, a process that is ramping up the intensity of the hospitality and tourism industry every year. This is the period when operators are literally on pins and needles, as they struggle to either maintain their business for another three years on the beach they already operate, or to claim a piece of beachfront for the first time, paving the way for new players in the market. In this environment, there is no shortage of fierce conflicts that take place not in conference rooms but in front of computer screens.

Stakeholders can watch in real time the auction unfold, constantly seeing whether their bid keeps them in or out of the competition. This peculiar “game” is conducted without them knowing what their opponents are bidding. All that is revealed is the position in which they are ranked at any given moment, which often triggers successive increases and intense bidding fever. Amidst this bidding madness, one case stood out that illustrates the extent of the competition: in Mykonos, a section of just 500 sq m on Lia beach was “hit” at almost half a million euros, causing a sensation in the market.

The price of the beach was almost half a million euros, which caused a sensation in the market.

Super Paradise

If the case of Lia is puzzling, comparisons with other auctions come to further reinforce the question of how we arrived at almost half a million euros for 500 sq m of sand. Data from this year’s auctions for beach concessions show a different picture, even in Mykonos itself. At Elia beach, one of the island’s most famous and commercial beaches, prices for auctioned sections were around 46,900-46,980 euros.

Similarly, in other areas of Mykonos, such as Plintri (Super Paradise), the final offer reached 88,302 euros, while in Agia Anna it was close to 50,000 euros. In Agrari, the amount moved lower, at around 14,000 euros, while in other parts of Kalafati, the beach ranged between 15,000 and 49,000 euros. Importantly, these are auctioned beach sections and not areas in front of organised beach bars, which, due to their activity and facilities, can support higher prices.

We are talking here about a simple beachfront concession, with specific exploitation limits. The picture becomes even clearer when we move outside Mykonos.

Sifnos Beach

In Sifnos, for example, the Vathi beach was awarded about 7,800 euros. In Tinos, beaches such as Agios Fokas, Agios Sostis, and Agios Ioannis Porto, prices ranged from around 5.000 to 15,000 euros, while in some cases they reached up to 20,000 euros. Even on organised beaches with tourist traffic, these amounts remain at levels linked to the actual exploitability and expected revenues. In other words, this is a market that operates in terms of a real economy.

In this context, Mykonos remains a category in its own right. Despite the problems that have been recorded in recent years in the quality of tourism, from oversaturation to changes in the profile of visitors, the island maintains its identity as a top entertainment destination. It is this identification with the high level of services and the intense tourist activity that keeps prices at higher levels than on other islands.

However, even within this environment, most auctions operate within certain limits. And these limits, as the data shows, have nothing to do with 500,000 euros of Lia.

The backstory on Lia

It was not a rare watch, nor was it an art painting that would change hands at an international auction house. It was neither a valuable piece of jewellery nor a collector’s item that warranted a fight to the finish. And yet, the final “hit” came in at 487,447.31 euros. The object? Five hundred square meters of… sand on a not-so-commercial beach in Mykonos over a period of three years. If one only heard the amount, one would easily assume that this was a real estate investment or at least an investment with a clear potential for goodwill.

In reality, however, this is an auction that leaves more questions than answers and that, even by Mykonos standards, is hardly explained in terms of economic logic. The starting price was set at 48,000 euros. A sum which, although high, is considered to be within the range for a concession of part of an organised beach in Mykonos. However, the development of the process was more reminiscent of an auction of a work of art than a lease of public space.

According to “THEMAS”, three were the main contenders: two Italian businessmen (one of them the owner of a restaurant already operating on the beach) and a Mykonian, also with a business presence in the area, behind the Italian’s business. The process turned into a race without brakes. Bids kept rising at a pace that surprised even people who have attended dozens of auctions.

Show of force

Against this backdrop, the price soared to nearly half a million euros, creating an effect more akin to a show of force than an investment option. And this is precisely where the main problem lies. The economic equation does not add up. Everyone who knows the beach bar and beach exploitation market is unequivocal. By Lia’s standards, paying off such a sum in three years is practically impossible. Even in optimistic scenarios, with high occupancy, increased consumption, and premium pricing, the revenue from sunbeds, drinks, and food is not enough to cover such an expense, let alone generate a profit. And that’s without factoring in operating costs, staff, supplies, and other expenses.

The element that makes the equation difficult is the capacity of that particular department. According to the farm’s data, no more than about 55 umbrella seats can be placed in the 500 square meter section. Simply put, there is a “ceiling” on the revenue the space can bring in, no matter how high the prices are.

The equation is complicated by the nature of the beach. Lia, although it has a loyal audience and a special character, is not among the “heavy” tourist options on Mykonos. Its season, as professionals in the sector point out, is essentially two months long, July and August. Outside of this period, visitor numbers drop significantly, drastically reducing revenues. It is one of the most remote beaches on the island, about 14 km from Chora, which affects the flow of visitors. It is not a first choice for the average tourist, nor does it have the constant traffic that characterises more prominent beaches. A comparison with Elia is typical. There, the season starts earlier, lasts longer, and the beach is larger and better known to the international public.

Visitor numbers are stable and crowded, creating different economic conditions. In Lia, by contrast, the profit margin is limited. Of course, any bidder can make the bidding barren, with the only loss being the 5,000 euro guarantee letter, rather than incurring a cost that cannot be recouped.

E-tenders

The e-auctions for the concession of the use of the seashore and beach were first implemented in 2017, attempting to bring order to a field that for years had operated with opaque procedures and significant discrepancies in terms of prices.

Gradually, the model was extended to more and more regions of the country, establishing a new culture in beach management. The breakthrough came in 2024, with the enactment of Law 5092/2024, which established electronic auctions as the exclusive way of granting the so-called “free beach sections”. These are areas that are not directly granted to adjacent businesses, such as hotels or beach bars, but are put on the market through an open procedure where any interested party can participate.

Currently, the system is fully automated, with the auctions taking place exclusively through the digital platform of the Ministry of National Economy and Finance and the gov.gr portal.

Interested parties will be able to be informed in real time about active notices, submit bids, and monitor the progress of the process. At the same time, specific conditions and restrictions have been set with regard to the use of the concession areas, such as the permitted coverage, the number of umbrella seats, and distances, in order to ensure that the exploitation takes place within a reasonable framework.

However, as more recent cases show, the existence of the digital system does not necessarily mean that the final results are always within economic logic. In some cases, competition, participant strategy, and the pursuit of control of specific points lead to prices that depart from the normal market norms, bringing back the discussion not about the process, but about the outcome itself.