Beachside holiday homes in Greece, on islands such as Mykonos and Crete, are the highest yielding properties in the Mediterranean region.
According to survey data presented by Greek newspaper Kathimerini, this is helping boost investor demand for Greek properties, which are performing better than holiday homes in countries such as Spain and France.
“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,” the report said.
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 have dipped marginally when compared to 2019, the last time the survey was conducted, but remain high as rents keep up.
The rise in demand for second homes, and, in particular, at the luxury end of the market has resulted in higher property values, it added.
Apart from benefitting from the strong financial performance, homeowners can also make use of the villas for themselves throughout the year.
The necessity of the work-from-home model has blurred the lines between primary and holiday homes, allowing many individuals to spend more time in their second home where they can work while enjoying the Mediterranean climate and lifestyle.
Mykonos, with its comparative advantages and strong brand name, has remained the top destination with an average annual gross yield of 7.4%. Second on the list comes Paros at 7.1%, followed by Santorini (6.3%) and Skiathos (6%).
Beachside homes in Chania on Crete, the country’s largest island, showed yields of 4.8% while in Rhodes, the figure stood at 4.5%. These are key Greek real estate markets which are performing better than Nice and the Turkish coast, where returns at both destinations were at 4.3 percent. In Spain’s Marbella, the yield also came in even lower at 4.2 percent.
Improving infrastructure in Greece, where billions of euros are being poured into upgrading roads, airports and ports are strengthening accessibility to different parts of the country as real estate prices remain among the lowest in Europe.
Elxis has a number of properties for sale from across Greece showing strong investment potential.