International real estate broker Tranio has announced the exclusive release of a joint report with the Mediterranean Resort & Hotel Real Estate Forum (MR&H) to explore international investors sentiment in the Mediterranean resorts and hotels market.
According to the announcement they analyzed the responses of more than 60 participants over one month. The respondents, who were real estate agents, investors, developers and industry experts in the region, were all partners of Tranio and MR&H. Some of the key findings were:
- The majority of respondents (86%) note that the activity of international investors is increasing in the region
- Spain, Greece
,and Italy top the ranking as the most attractive countries for investors
- The main factors contributing to a country’s popularity among investors area stable economy and low bank charges (Spain, Italy, France), residency or citizenship by investment programmes (Spain, Portugal, Cyprus), and a growing market with high yield prospects(Greece).
- 55% of the respondents named the Cyclades Islands: Tyr? (Santorini), Mykonos and Paros as the most popular locations among investors in Greece
- 39% of the respondents believe that the Costa del Sol and other locations on the Andalusian coastline (Malaga, Marbella, Benalmadena, Torremolinos, Fuengirola) are particularly attractive
- 3/4star hotels and resorts are the most popular investment types among international investors
- The two main motivations for investing in hotel real estate are for personal use (as holiday/second homes), as well as portfolio diversification of investors
- 72% of respondents believe that an investment in hotel real estate in the Mediterranean becomes unprofitable because of ineffective asset management.
Topping the list of most interesting sub-markets were Spain, Greece, and Italy. In the post-event report MR&H reported an overall positive investment landscape for Europe and the Med:
“This positive picture in Europe and the Mediterranean is funneling down directly into the hospitality industry. Europe’s hospitality market is outperforming the rest of the world, with a 6.6-percent uptick in RevPAR year-to-date August. The demand/supply quotient is still in hotel owners’ favor. Occupancies in Europe are 10-percent higher than the previous peak, and northern Mediterranean cities are performing at a high level with a 10- to 20-percent occupancy premium over the southern and west Mediterranean.”
Among the top resort properties mentioned at the meetings, Ikos Olivia and Club Med Marbella stood out.