International Investments in Mediterranean Hotel Real Estate – 2018
International investments in hotel real estate in the Mediterranean are on the rise. This is indicated by the results of an online survey conducted in 2018 jointly by Tranio and MR & H. The majority of respondents (86%) note that the activity of international investors is growing.
The activity of international investors in hotel real estate in Serdtremit
More than half of MR & H respondents (57%) believe that hotel real estate is the most popular or one of the most popular categories of investment properties in the Mediterranean region. At the same time, only 34% of respondents adhere to such an opinion from Tranio, and about half indicate that interest in hotel real estate is at an average level compared to other types of income property. In any case, only a small percentage of survey participants consider this category unpopular.
How much are hotel properties in Serdtsemire popular with international investors compared to other types of profitable real estate?
Spain, Greece and Italy are at the top of the ranking of countries that are most attractive to investors, although their places in this rating are again differently rated by respondents Tranio and MR & H:
Which Mediterranean countries are most popular among international investors in hotel real estate?
The factors of popularity of a country are a stable economy and low bank rates (Spain, Italy, France), programs for granting residence permits for investments (Spain, Portugal, Cyprus), a growing market with high yield prospects (Greece).
According to individual respondents, investor interest in Spain stopped increasing after real estate prices passed the bottom and bank rates began to rise.
One respondent notes that in Greece, “investors buy out depressed assets for conversion or redevelopment, but keep clear of empty plots for new construction. The investment climate is complicated by protracted bureaucratic procedures, but problems with them are gradually diminishing. ”
Speaking of individual locations that are popular among investors, in Greece, 55% of respondents distinguish the Cyclades, namely Thiru (Santorini), Mykonos and Paros. Many also consider Athens (36%) and Crete (27%) to be promising, some respondents mention Rhodes and Chalkidiki.
In Spain, 39% of respondents believe that the Costa del Sol and other locations on the coast of Andalusia (Malaga, Marbella, Benalmadena, Torremolinos, Fuengirola) are particularly attractive. Barcelona is preferred by 22% of the participants, and among the other locations mentioned are the Balearic Islands (primarily Ibiza) and the Costa Brava.
Finally, in Italy, 18% of respondents indicate Rome, Milan and Apulia.
Responding to a question, people from which countries invest in hotel real estate in the Mediterranean, respondents named primarily the United States, China and the Arab countries, as well as Russia and other countries of the former USSR. However, the ratings of countries of origin of investors once again differ between respondents Tranio and MR & H.
Investors from which countries are buying property in the Mediterranean
In Greece, according to respondents’ estimates, real estate funds from the United States, as well as British private investments, are noticeable among investors.
The most popular types of hotel real estate are 3-4 star hotels, as well as resorts. Hotels were in the first place in the ranking of Tranio respondents, gaining 33% of the votes, and resorts leading in the ranking of MR & H respondents (38%).
Type of hotel property, popular among international investors
According to one of the respondents, “the concept of tourist recreation has completely changed over the past few years. Tourists on the Mediterranean coast are turning to new destinations in search of more “local” sensations. So traditional large hotels face difficulties, while serviced apartments offering immersion in the local atmosphere are gaining in popularity. Some traditional hotels have even been redeveloped into apartments. ”
Almost half of the respondents (46%) believe that the main reason for buying hotel property in the Mediterranean is the desire to have their own housing, where you can come to rest. However, almost as many survey participants (41%) believe that investors buy such real estate in order to diversify their portfolio.
Mainly the motive of international investors buying hotel property in the Mediterranean
Investments are not always successful, and the main cause of failures, according to 72% of respondents, is ineffective management of an investment object. The remaining answers are lagging far behind.
The reason why real estate in the Mediterranean may not be profitable
Material prepared for InfoReactor
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