Eight Greek destinations, including the popular tourist islands of Mykonos, Paros and Santorini, are among 30 in the Mediterranean ensuring the highest returns and keeping their investment dynamic strong, according to a report released this week by Algean Property.
According to Algean analysts, despite Covid-19, the holiday home market in the Mediterranean has evolved into the most dynamic and active sector of the real estate industry in the area.
In its latest “Ride the Wave Yields Report” for 2022 recording the latest trends and prospects in the luxury holiday home market, Algean Property analysts found that Mykonos, Paros, Santorini, Skiathos, Porto Heli, Halkidiki, Kefalonia and Chania (Crete) are in the lead in terms of annual yields.
The report findings are based on research conducted across 30 popular destinations in the Mediterranean. Overall, across the 30 locations under review, sale prices have increased and yields are lower compared to their 2019 levels.
A growing demand especially in luxury destinations and the luxury real estate segment has led to higher prices and lower yields. Demand across Mediterranean holiday destinations soared during the pandemic, with Greece, Spain and France leading the race.
According to Algean analysts, given the low interest rates, purchasing a luxury holiday home has proven to be a good investment opportunity, with estimates showing that 45 percent of customers are already buying their vacation property as a potential investment. At the same time, many Mediterranean holiday home markets and destinations are becoming “primary home markets”.
Of the 30 destinations under review, nearly half are in Greece. Data on Greek real estate indicates that from 2018-2021, residential property prices have grown from 10 percent to 30 percent, depending on location.
The Algeon 2022 analysis shows that Mykonos, Paros and Santorini are still the top Mediterranean destinations, further establishing their investment dynamics, even in the post pandemic holiday home market.
For the sixth time, Mykonos – thanks to its comparative advantages (mild weather, beautiful seashores) – and strong brand name is the top performing destination with an average gross yield of 7.4 percent.
Paros (7.1 percent) was able to increase its yield compared to 2019 (6.5 percent). Sale prices and rents on Santorini experienced a slight increase compared to 2019 but overall performance remained the same (6.3 percent). Sale prices, rents and yields on Skiathos remained unchanged compared to 2019 at 6.0 percent, while Porto Heli increased yields to 5.3 percent compared to 2019 (5.1 percent).
Halkidiki, Chania and Kefalonia share the same 4.8 percent yield.