The Real Estate & Hospitality Development in Greece
The year 2024 has seen Greece climb the ranks in terms of hospitality investments. According to the Greek press, the value of hotel investments in Greece rose to €3 billion in 2023, reflecting a 23% increase compared to the previous year. This growth is attributed to the robust tourism sector that has been developed in Greece in the past decade, which has consistently attracted a high influx of visitors, boosting the demand for quality accommodation.
Comparatively, Greece outpaces many of its European counterparts in attracting foreign investments into developing its hospitality industry. Countries like Spain and Italy, though traditionally strong in tourism, have seen slower growth in hotel investments – specially from foreign capital. Greece's proactive policies and investor-friendly environment have made it an attractive destination for international hotel brands and developers seeking a safe investment with a high yield.
According to the Hellenic Chamber of Hotels, investment in Greece's hospitality sector exceeded €1.5 billion in 2022, reflecting strong post-pandemic recovery and growth. This momentum continued with a consistent annual growth rate of 10-15% in hotel investments over the past five years.
Regarding new hotel developments, the Greek Tourism Confederation (SETE) reported that approximately 50 new hotels opened across Greece in 2022, adding around 8,000 new rooms to the market. These new hotels vary in type: about 35% are boutique hotels, which are increasingly popular in destinations like Santorini and Mykonos, and around 25% are luxury hotels catering to high-end tourists.
Greece's unique geography, with its numerous islands, leads to diversified hospitality investments across the country. According to the Greek National Tourism Organization, significant investments have been concentrated in the capital, Athens, with over €500 million invested in new hotels and renovations, adding around 3,000 new hotel rooms in 2022. Meanwhile, the islands of Santorini, Mykonos, and Crete have also seen substantial investments. Crete leads with over €250 million invested in new developments and expansions, adding around 20 new hotels. Santorini follows with investments totaling €200 million for 15 new hotels, and Mykonos with €150 million for 10 new luxury hotels.
A significant portion of hotel investments in Greece originates from foreign investors, with major contributions coming from the UK, Germany, the USA, and the Middle East. Foreign companies and investment trusts are highly active in the Greek market, capitalizing on the country's thriving tourism industry. This interest is underscored by major hotel chains and luxury brands expanding their presence, recognizing the long-term potential of Greece's hospitality sector.
Furthermore, Greece's Golden Visa program has played a crucial role in boosting this trend. The program allows investors to secure residency by making substantial investments in real estate, including hotels. Since its inception in 2013, the Golden Visa program has been instrumental in attracting foreign investments, contributing to over €2 billion in hotel and real estate investments.
Read More:
Greece Real Estate Market in 2024 - Why to Invest in Greek Properties
New Rules for the Greece Golden Visa: Prices Increasing Up to €800k
Greece Golden Visa - Residency by Investment in Greece
Greece Golden Visa Boosting Investments for Hospitality
The Greece Golden Visa program has become a pivotal element in driving investments in the hospitality sector. This program offers residency to non-EU citizens who invest a minimum of €250,000 in Greek real estate, including hospitality the sector. However, it's crucial for prospective investors to act swiftly, as the price for the investment will increase to €800,000 minimum.
According to the Greek government, the Golden Visa Real Estate option price will increase, marking a complete overhaul of the program with the introduction of 3 new price tiers. However, the changes are already approved and fully into effect since March 31st, 2024, investors can still apply under the existing €250,000 minimum requirement if they submit a 10% deposit by August 31st, 2024, and complete their investment by December 31st, 2024.
The new Greek Golden Visa rules will now recognize the renovation of listed buildings with historic importance or under special protection, allowing investments to remain at €250,000 regardless of property size or location. This option can be implemented over 5 years, ensuring full restoration of the property by the time of the first Golden Visa renewal.
According to the Hellenic Chamber of Hotels, approximately €400 million was allocated solely to renovating and upgrading existing hotels in 2022, aimed at enhancing quality and meeting the growing demand for high-end accommodations. A significant portion of these investments focuses on making hotels more sustainable, following EU regulations, with around €150 million invested in eco-friendly technologies and practices during the same year.
Investing in hospitality developments through the Golden Visa program not only offers a pathway to Greek residency and visa-free travel throughout the Schengen area but also promises attractive returns. Several prominent hotel projects funded through this program underscore its viability and appeal. For example, investments in luxury resorts and boutique hotels have experienced substantial appreciation, aligning with the increasing demand for upscale accommodations in Greece.
The Promising Perspective for Touristic Sector in Greece in 2024
Greece's tourism sector presents promising prospects for real estate investors in 2024. The country's appeal as a top travel destination continues to grow, as evidenced by the numbers from 2023, offering ample opportunities for property owners to generate significant profits. Investors can capitalize on the tourist market by offering vacation rentals, benefiting from a steady stream of international visitors.
The tourism and hospitality sector plays a pivotal role in Greece's economy, contributing approximately 20% to the total GDP. This underscores its importance, not only as a major employer, providing jobs to a significant portion of the population, but also in supporting economic recovery and reducing unemployment rates. Data from the Bank of Greece reveals that the balance of travel services in Greece in 2023 recorded a surplus of €18,162.0 million, marking a 15.3% increase from €15,751.5 million in 2022.
According to the study, in 2023, spending by residents of euro area countries visiting Greece reached €9,065.7 million, marking a 12.5% increase from the previous year. Residents of non-euro area countries spent €2,104.0 million, showing an 8.0% increase. The Bank of Greece data highlights the nationalities of tourists, with spending from Germany rising by 9.7% to €3,571.3 million, and spending from France increasing by 11.6% to €1,425.4 million. Spending from the United Kingdom grew by 5.3% to €3,294.4 million. Spending from the United States saw a sharp increase of 14.4% to €1,373.6 million, while spending from Russia decreased significantly by 21.7% to €32.4 million.
The potential for high occupancy rates and attractive rental yields makes Greece an ideal market for real estate investments. Additionally, the country's diverse tourist offerings—from pristine beaches and historical sites to vibrant city life—ensure a steady demand for various types of accommodation, catering to different traveler preferences.
Greece Golden Visa Commercial & Touristic Property
Investment Visa offers a distinctive array of property developments meticulously designed for investors pursuing opportunities through the Greek Golden Visa program. Our extensive portfolio complies comprehensively with the latest guidelines established by the Government as of February 2024, ensuring full eligibility and compliance. Covering locations across Greece, our listings encompass a diverse selection of commercial and tourism-oriented properties in Athens, Thessaloniki, and Crete. These prime locations not only promise exceptional investment potential but also provide investors with the ideal setting to capitalize on high returns.
Whether you're seeking a strategic commercial venture or an enticing tourist destination, our properties are strategically positioned to maximize investment opportunities under the Greek Golden Visa framework.
Greece Golden Visa Residence by Investment in Crete
REF: IV1562
The Olive Residence development is a stunning new development in the area of Mesampelies, Heraklion, Crete. This exclusive complex comprises 38 sophisticated residences, perfectly poised for those seeking an ideal Golden Visa qualifying investment in the biggest Greece Island. This development will cover two residence Types, been 21 Maisonettes; two-story homes offer private gardens and swimming pools, designed for luxurious living and privacy. The second option will be 17 Double Frontage Apartments, among 8 feature private roof gardens and Jacuzzis, providing an exceptional view and upscale lifestyle.
REF: IV1608
The Emerald is a development in Pireaus, the port city of Athens and main maritime hub of the country. This development is an excellent investment opportunity in the heart of booming Piraeus, with packages of 2 separate studio apartments to meet the threshold requirements of the €250,000 Greek Residency by Investment program. With only 10 units available, this development offers Amenities such as Aluminium Window Frames with Double Glazing, Autonomous Heating System, Elevator, LED Lighting Technology, and Thermal insulation on walls & windows.
Piraeus International Hotel Investment
250k Golden Visa RBI Hotel Investment
REF: IV1623
The Piraeus International Hotel Investment is currently one of the premier hospitality investment opportunities in Greece and Europe. With all necessary licensing in place and a global hospitality brand set to operate, this investment promises high demand due to its central Piraeus location and the minimum investment threshold. Addressing the shortage of high-end accommodation in Piraeus, the 4-star hotel will feature a bar and restaurant, gymnasium, and business center, with 59 standard rooms and 6 suites. Renowned developers are offering 100 share options, presenting investors with two different investment structures to choose from.
Investment Visa as Your Trusted Partner for Hospitality Investments
At Investment Visa, we specialize in guiding investors through the process of capitalizing on Greece's booming hospitality sector. Our expertise and comprehensive services ensure that your investment journey is smooth and successful. We provide tailored advice on the best investment opportunities, including the Golden Visa program, helping you maximize your returns while securing residency in one of Europe's most enchanting destinations.
Partner with us to explore the myriad opportunities in Greece's hospitality industry and take advantage of the rising market trends. Whether you're interested in luxury hotels, boutique resorts, or vacation rentals, Investment Visa is your trusted ally in navigating the Greek real estate landscape.
-
Citizenship by Real Estate Investment: Your Guide to Global Opportunities
In an increasingly interconnected world, obtaining a second passport has become an attractive option for global investors. This method, known...
