High yields in holiday homes
The capital gains from sales price increases and the significant income from renting property out via digital short-term rental platforms make the purchase and exploitation of holiday homes in Greece a particularly profitable investment, according to research by Elxis – At Home in Greece, which specializes in selling holiday homes to foreign buyers.
The acquisition of a newly built villa near the sea, with at least two bedrooms, is evolving into one of the best investments in recent years.
“During the last 12 months, the cost of purchasing a newly built holiday home in Rethymno with an area of 80 square meters, three bedrooms and a swimming pool, amounted to 327,000 euros. This is 16.7% higher than in 2023 (€280,000) and 23.3% higher than in 2022 (€265,000). However, if the owner also chooses the rental solution, the potential profit can be even greater,” says Elxis CEO Giorgos Gavriilidis.
Based on the company’s analysis:
- a fully furnished house of 50-80 sq.m. with a terrace and a swimming pool can be rented for €80-140 per bedroom for one night
- a similar property, but bigger, from 120-150 sq.m., can fetch from €180 to €240 per bedroom for one night.
For example, a house of 50-60 sq.m. with one bedroom secures up to €140, while a larger property of 80-100 sq.m., which has at least two bedrooms, can earn an income of up to €480 per night.
The amount of rent charged depends on the view and distance from the sea and popular tourism attractions, the construction year, the existence or not of a garden or swimming pool, as well as the distance from an airport.
The final yield also depends on operating expense: If owners choose to utilize a management company, they should also calculate the cost of the commission (from 10% to 30%) with a full package of services, from cleaning and maintenance to the reception and service of visitors. Most foreign buyers prefer to use such companies, as few are able to manage their property due to distance and time constraints.
Source: eKathimerini.com
