Vacation Rentals Greece – Top markets for investment: Explore the allure of Greece as a prime destination for vacation rentals and fulfill your dream of owning a property in this majestic country!
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Explore the allure of Greece as a prime destination for vacation rentals and fulfill your dream of owning a property in this majestic country!
- Last updated January 1, 2024
Vacation Rentals Greece: Top markets for investment
Key Takeaways
- Greece’s popularity as a top tourist destination, coupled with its economic growth and good real estate market conditions open the doors to great investment opportunities for property investors.
- Learn about the pros and cons of investing in Greece’s real estate market, along with its legality. We also feature the possibility of purchasing a house for foreigners.
- Using the Airbtics Dashboard, the top 10 cities for short-term rental investments in Greece have been revealed. This article also provides valuable insights for property investors aiming for maximum returns.
Unlocking Opportunities: Investing in Vacation Rentals in Greece
Nestled at the southern tip of the Balkan peninsula, Greece is a truly majestic destination that is widely known for its rich ancient history and cultural heritage. This country is famous for being the cradle of Western civilization, leaving a lasting legacy in terms of art, philosophy, politics and literature.
Greece always breaks records when it comes to tourism, thus, its potential as an investment destination is visible. In fact, the country welcomed over 17.4M international arrivals during the period of January-August 2023 and numbers just keep growing as we reach the end of the year! This opens the doors to plenty of opportunities for property investors looking to cater to tourist accommodations.
Moreover, the rental market’s conditions in Greece couldn’t be more favorable to investors. Aside from a robust tourist market, the country also offers affordable property prices, a strong performance in the housing market, and high rental yields year-round.
On the lookout for the perfect spot to buy a rental property in Greece? This article showcases the top cities to invest in vacation rentals in Greece, along with crucial Airbnb metrics. Furthermore, we delve into the pros & cons of real estate investment and its legal aspects in Greece!
Why Invest in Greece Real Estate: Pros & Cons
Greece possesses an undeniable beauty that is further enhanced by its heritage, Mediterranean weather and relaxing lifestyle. So a real estate investment in Greece would allow investors not only to enjoy a nice passive income but also the opportunity to enjoy the luxuries that the country offers!
Here are the pros and cons that you should consider before buying an investment property in Greece and then setting it up as a short-term rental:
Pros of Buying a Property in Greece
GREAT REAL ESTATE MARKET CONDITIONS
In recent times, the property market in Greece has been performing quite well and there’s a lot of demand, especially from foreign investors who have been attracted by the Golden Visa Program. Additionally, economic growth and improved stability coupled with a demographic increase have boosted the housing market demand.
While property prices in Europe have been on the rise, they still remain relatively affordable as you can find plenty of budget-friendly options in Greece. For instance, the average house price in Greece is currently around €2,408 per sq.m.
SOLID RENTAL MARKET & GOOD RENTAL YIELDS
The rental market in Greece is strong and the demand has been steadily increasing. This market demand is particularly influenced by the strong tourist market, bringing high occupancy rates, a nice passive income, and good rental yields to investors. In fact, the average rental yield in Greece stands between 5% and 8%, where the top tourist areas are the most profitable areas.
Moreover, this economic activity contributed 1.65% to GDP in 2022 according to a research report presented at the Prodexpo Real Estate Conference.
ROBUST ECONOMIC GROWTH
Greece is one of the top Europe’s fastest-growing economies! Despite the challenges posed by the COVID-19 crisis, the country has been experiencing a solid recovery, leading to significant growth in employment opportunities! Its real GDP grew 2.2% this year and is projected to grow by 1.9% in 2024 according to the OECD economic outlook.
Cons of Buying a Property in Greece
Aside from the pros of buying an investment property in Greece, let’s discuss some cons so you can know what to expect when investing and living in this country. It’s always better to look at the two sides of each coin to properly set your expectations!
SEASONALITY
In most popular tourist destinations in Greece, such as the islands, the rental demand is high, yet it comes with a major downside: seasonality. There’s a high demand for rentals during the summer months, slowing down during the winter season (November – March). Of course, there is still the possibility of getting your properties booked, however, keep in mind that there’s a high chance for the listings to sit vacant during these months.
BUREAUCRACY
Purchasing property in Greece can be a dream come true but it comes with a time-consuming, costly, and bureaucratic process. This involves an extensive amount of paperwork and large legal procedures. So it’s better to be mentally prepared!
And while under Greek law, foreign investors are not obligated to be represented by lawyers when buying a property, it’s recommended to designate one to avoid any major legal issues. Lawyers will help you to coordinate and plan the specific actions!
Is Airbnb legal in Greece?
Understanding the key metrics of Airbnb is crucial, but it’s equally essential to be aware of the legal aspects of being an Airbnb host in your target market. Having said that, in Greece, it is legal to operate a rental or Airbnb listing. Yet, it’s important to note that hosts must register the property in the “Register of Short-Term Property Lets”.
Find out more about Airbnb’s legality in Greece through our STR regulations guide!
Greece Property Investment Visa: Buying a Property as a Foreigner
Many of us harbor the dream of owning property in Greece, so to make our wishes come true, we like to explore diverse possibilities to achieve this. The great news is that Greece offers residency visa programs for foreign investors who meet certain requirements! Broadly speaking, there are no major restrictions when it comes to purchasing a house. But we must mention that EU citizens or residents have a notable advantage in the process.
Some documents that you must have before buying a property in Greece:
- A passport
- Tax Registry Number (AFM)
- Greek visa (for non-EU residents)
- Residence proof
- Copy of annual tax returns
- Government-issued ID proofs
- Proof of obtaining health insurance in Greece
One of the most sought-after programs in Greece for non-EU citizens is the Golden Visa Program, which is a residence-by-investment visa. This visa is provided to non-EU residents who contribute over €250,000 to the Greek economy and commonly it takes around 2 months to be issued.
You can find which documentation is necessary for the Golden Visa here.
Where to Invest in Greece: Prime Locations for Short-Term Rentals
With great investment opportunities, Greece stands out as a promising destination to property investors looking to generate a good rental income. Yet, there’s still a question that we must answer: where should you invest in real estate in Greece?
To identify the best cities for short-term rental investments in Greece, we conducted intensive research on different cities and filtered the top markets:
|
|||||
|---|---|---|---|---|---|
| Location | Airbnb Listings | Best Number of Bedrooms | Airbnb Annual Revenue | Median Property Price | GRY |
| Fira | 681 | 1 bedroom | €500,000 | €57,483 | 11.5% |
| Mikonos | 825 | 1 bedroom | €430,000 | €55,724 | 13% |
| Chania | 2,380 | 3 bedrooms | €350,000 | €42,544 | 12.16% |
| Paros | 538 | 1 bedroom | €220,000 | €31,884 | 14.5% |
| Rhodes Town | 1,095 | 2 bedrooms | €213,000 | €29,928 | 14.1% |
| Corfu Town | 1,491 | 1 bedroom | €180,000 | €29,631 | 16.46% |
| Athens | 10,874 | 2 bedrooms | €180,000 | €23,859 | 13.26% |
| Thessaloniki | 2,910 | 2 bedrooms | €155,000 | €18,291 | 11.8% |
| Heraklion | 1,359 | 1 bedroom | €120,000 | €18,159 | 15.13% |
| Kalamata | 682 | 1 bedroom | €130,000 | €14,076 | 10.83% |
Location
Airbnb Dataset
- Total Airbnb Listings: 681
- Best Number of Bedrooms: 1 bedroom
- Median Property Price (1 bedroom): €500,000
- Airbnb Annual Revenue: €57,483
- Gross Rental Yield: 11.50%
- Total Airbnb Listings: 825
- Best Number of Bedrooms: 1 bedroom
- Median Property Price (1 bedroom): €430,000
- Airbnb Annual Revenue: €55,724
- Gross Rental Yield: 13%
- Total Airbnb Listings: 2,380
- Best Number of Bedrooms: 3 bedrooms
- Median Property Price (3 bedrooms): €350,000
- Airbnb Annual Revenue: €42,544
- Gross Rental Yield: 12.16%
- Total Airbnb Listings: 538
- Best Number of Bedrooms: 1 bedroom
- Median Property Price (1 bedroom): €220,000
- Airbnb Annual Revenue: €31,884
- Gross Rental Yield: 14.50%
- Total Airbnb Listings: 1,095
- Best Number of Bedrooms: 2 bedrooms
- Median Property Price (2 bedrooms): €213,000
- Airbnb Annual Revenue: €29,928
- Gross Rental Yield: 14.1%
- Total Airbnb Listings: 1,491
- Best Number of Bedrooms: 1 bedroom
- Median Property Price (1 bedroom): €180,000
- Airbnb Annual Revenue: €29,631
- Gross Rental Yield: 16.46%
- Total Airbnb Listings: 10,874
- Best Number of Bedrooms: 2 bedrooms
- Median Property Price (2 bedrooms): €180,000
- Airbnb Annual Revenue: €23,859
- Gross Rental Yield: 13.26%
- Total Airbnb Listings: 2,910
- Best Number of Bedrooms: 2 bedrooms
- Median Property Price (2 bedrooms): €155,000
- Airbnb Annual Revenue: €18,291
- Gross Rental Yield: 11.80%
- Total Airbnb Listings: 1,359
- Best Number of Bedrooms: 1 bedroom
- Median Property Price (1 bedroom): €120,000
- Airbnb Annual Revenue: €18,159
- Gross Rental Yield: 15.13%
- Total Airbnb Listings: 682
- Best Number of Bedrooms: 1 bedroom
- Median Property Price (1 bedroom): €130,000
- Airbnb Annual Revenue: €14,076
- Gross Rental Yield: 10.83%
Source: Airbtics Dashboard
Insider’s Quick Guide: Find Out the Best Places to Invest in with Airbtics
Identifying promising rental markets can be a time-consuming endeavor. That’s why it’s wise to leverage advanced resources available to property investors to hasten this process.
First, go ahead and explore real estate forums and conduct research on search engines to discover which locations are piquing significant interest among investors. This approach will allow you to sort your list. You should also utilize analytical tools to identify profitable STR markets, especially those that provide dynamic data.
Airbtics Dashboard allows users to explore a city and gain valuable insights, such as important Airbnb KPIs, to simplify their investment research. This dashboard provides users with precise data sets that showcase metrics such as average revenue, occupancy, nightly rates, seasonality, and more.
Sometimes, your target location might not appear in the search results, but you can easily create your own custom market.
Now that you have a clearer perspective of your target market. Feel free to experiment with the filters to identify the results that fit your needs. You can use filters to find what type of property offers the most appealing profit in your chosen area.
One of the greatest advantages of dynamic data is that if you move and zoom in and out of your map, the data will also change accordingly.
You can repeat this process until you find which property type makes a sound investment choice in your target area. By comparing data across various property types, you can pinpoint the option that aligns best with your preferences and goals.
Seizing Opportunity: Greece’s Allure for Vacation Rental Investments
In summary, considering its record-breaking influx of international tourists and favorable rental market conditions, Greece presents abundant opportunities for those seeking to invest in vacation rentals. Whether you’re drawn to the historical allure of Athens or the tranquility of the islands, Greece not only promises financial returns but also the opportunity to indulge yourself in the luxuries offered by this remarkable country.
Yet, while Greece’s beauty adds an extra layer of appeal, it’s crucial to consider the pros and cons discussed in this guide as well as some Airbnb startup costs. And, as you explore prime locations for vacation rentals in Greece, you should use advanced resources like the Airbtics Dashboard to set up data-driven strategies and make smart investment decisions. With its dynamic data sets and informed market insights, this tool streamlines your research process, helping you identify profitable opportunities!
Short-Term Rental Data
Short-Term Rental Data
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