Lux­ury home ren­tal in­dus­try set for high rev­enues this year

Kathimerini English - - Focus - BY NIKOS ROUSSANOGLOU

Greece is set to spend an­other sum­mer in the fo­cus of the high-stan­dard home rentals mar­ket, as this prop­erty cat­e­gory is ex­pe­ri­enc­ing ever grow­ing de­mand at pop­u­lar re­sorts in Greece and abroad.

Data from firms in the in­dus­try put the fig­ure of hol­i­day homes around Greece that have ob­tained the Greek Na­tional Tourism Or­ga­ni­za­tion stamp at over 10,000, with 80 per­cent of them hav­ing been added over the last three years.

The rea­son for that de­vel­op­ment is the ma­jor in­ter­est even in very lux­u­ri­ous prop­er­ties in ar­eas of high de­mand, such as the is­land of My­conos, where ren­tal costs at peak sea­son can reach up to 30,000 eu­ros a week, ri­val­ing in­ter­na­tional des­ti­na­tions like Cannes in the South of France.

On av­er­age, weekly ren­tal rates on My­conos range around 10,000 eu­ros through­out the sum­mer sea­son, mean­ing such an as­set can earn its owner as much as 120,000 eu­ros in just three months.

Con­stanti­nos Sideris, an an­a­lyst at in­ter­na­tional real es­tate con­sul­tancy firm Al­gean Prop­erty, tells Kathimerini that the in­ter­est­ing fact about this mar­ket in 2017 is that this ac­tiv­ity has started record­ing high de­mand since May, ris­ing fur­ther in June. “This year we no­ticed for the first time some strong in­ter­est in lux­ury hol­i­day home rent­ing as early as May, which did not hap­pen in the past. The ex­ten­sion of the ren­tal sea­son lays the ground­work for se­cur­ing even higher rev­enues this year,” ar­gues Sideris.

Ren­tal rates have re­mained rel­a­tively sta­ble this year, show­ing no great change from last year. Nev­er­the­less in spe­cific cases, mainly on My­conos, there have been small hikes in 2017 as a re­sult of the in­crease in de­mand. The swing to­ward lux­ury ac­com­mo­da­tion has even con­vinced ho­tel units to un- der­take the man­age­ment of vil­las in or­der to lease them out and at­tract more guests this year.

Short-term ren­tal plat­form Airbnb is gear­ing up to en­ter this in­ter­na­tion­ally grow­ing mar­ket soon: Ac­cord­ing to a Bloomberg re­port the pop­u­lar web­site is pre­par­ing to of­fer a new ser­vice for highly lux­u­ri­ous vil­las and apart­ments around the world, start­ing from late 2017. Al­ready the first tests to that ef­fect are tak­ing place and, if suc­cess­ful, they will ex­pand to coun­tries around the world. Its tar­get group will be wealthy trav­el­ers who are seek­ing more from their travel ex­pe­ri­ence.

Ren­tal rates have re­mained rel­a­tively sta­ble this year, show­ing no par­tic­u­lar change from last year. In spe­cific cases, mainly on My­conos, there have been small ren­tal hikes in 2017 due to the in­crease in de­mand.

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