This concerns the yields from letting them out in relation to purchase prices, rendering Greek island real estate exceptionally attractive.
It is therefore no wonder why houses on Paros and Mykonos have higher returns than residences of the same size and features in Cannes, Saint Tropez or even Capri. In recent years, despite the pandemic, the holiday homes market on Mykonos has evolved steadily from a very promising property niche into the most dynamic and active section of realty.
For a sixth year, Algean Property has conducted a survey across 30 popular destinations in the Med, recording all the latest trends and prospects in the luxury holiday homes market. Once again, for a sixth time, Mykonos, with its comparative advantages and strong brand name, has remained the top destination with an average gross yield of 7.4%. The increased demand has resulted in price growth, while rents rose at a slower pace, which explains the easing of returns compared to 2019 (8.2%).
Paros reached 7.1% as it was one of the destinations that managed to increase their yield rate from 2019 (6.5%). Although prices went up, the rise of rents exceeded the advance of sale rates, thereby closing the gap with Mykonos.
On neighboring Santorini sale prices and rents posted a small increase compared to 2019, though the average returns rate has remained the same (6.3%).
Across the Mediterranean, one can see that, despite the pandemic, top-level holiday residence prices have remained steady overall, or even grew somewhat in value terms in the 30 locations examined. Consequently, returns were generally lower compared to 2019. The rise in demand in luxury destinations in particular and in the sector of luxury properties in the market has resulted in higher property prices and lower yields for investors.
Demand across all Mediterranean destinations soared during the pandemic, with Greece, Spain and France in the lead: “Given the low interest rates in recent years, the purchase of a luxury holiday home is a major investment opportunity,” Algean Property explains.