In Greece, this trend is taking root, signalling a shift in the traditional hospitality landscape. In the hospitality tapestry, DKG Development stands as a one of the pioneering players introducing investment properties to the local market. This strategic move reflects a deep understanding of the shifting landscape and a dedication to setting new benchmarks. By seamlessly blending the independence of furnished suites with the convenience of hotel services, DKG is not just redefining accommodation but reshaping the very essence of hospitality in the country.
Why Invest in Serviced Apartments?
The countrys' tourism sector, which welcomed over 22 million visitors in 2024, fuels demand for flexible accommodations. According to Savills' Q1 2024 European Hospitality Report, Athens saw a 12% year-on-year increase in average daily rates (ADR) for short-term rentals, outpacing cities like Barcelona and Lisbon. Combined with Golden Visa programs, which offers residency for €250,000+ investments, this positions the country as a high-growth market for investors targeting both tourism and business travel.
Key Takeaways
Tourism-Driven Demand: 30M+ annual visitors and 12% YoY ADR growth in Athens create prime opportunities for short-term rental investors.
Prime Locations Pay Off: Glyfada (25% luxury booking surge), Piraeus (12% price growth), and Psirri (22% RevPAR jump) offer varied entry points for high returns.
Athens Outshines Europe: With 15% RevPAR growth (vs. 9% EU average) and lower entry costs than Paris or Amsterdam, Athens delivers superior ROI.
Future-Proof Investments: The €8B Hellinikon Project and rising demand for eco-friendly tech-enabled stays.
What to Consider Before Buying a Rental Investment
Before taking the plunge into rental property ownership, it's crucial to assess everything from local market trends and financing options to the long-term management challenges, ensuring your investment is both sound and aligned with your financial goals.
Key factors include:
Regulatory Landscape: The country requires short-term rental licenses (EOT), but reforms in 2024 aim to streamline approvals.
Sustainability Trends: Savills notes a 20% rise in demand for eco-certified properties in Europe; integrating energy-efficient features can boost appeal.
Tech Integration: Smart home systems (e.g., keyless entry, IoT devices) are critical, as 67% of European travellers prioritise tech-enabled stays.
Source: Hellstat.com
Short-Term Lets in Athens: Capitalising on Tourism
Athens’ short-term rental occupancy hit 73% in Q1 2024 (Savills), driven by cultural tourism and business conferences. Neighborhoods like Plaka and Koukaki benefit from proximity to the Acropolis, with nightly rates averaging €120–€180 for a one-bedroom unit. The city’s RevPAR (Revenue Per Available Room) grew 15% YoY, outperforming the European average of 9%, making it a standout for ROI-focused investors.
High-End Furnished Residences in Greece
Luxury rentals command ADRs up to €500/night in prime areas like Mykonos and Santorini. Savills highlights that upscale properties with curated experiences (e.g., private chefs, yacht access) saw 18% higher ADRs than standard luxury units in Q1 2024. Thessaloniki’s waterfront and Piraeus district are emerging hubs, blending cosmopolitan amenities with Mediterranean charm.
Source: piraeusgate
Prime Locations in Athens for Investment
Focus on these high-demand areas:
Glyfada: Coastal appeal with upscale shopping and dining, plus a 25% spike in luxury bookings linked to the Hellinikon Project (Savills Q1 2024).
Piraeus: The bustling port district, revitalized by cruise tourism and new infrastructure investments, offers 12% YoY price growth (Savills) and proximity to key business hubs.
Psirri: A vibrant mix of nightlife and historic sites, with RevPAR surging 22% due to heritage tourism.
Koukaki: Near the Acropolis, popular with cultural tourists and Airbnb users, boasting €120–€180/night rates for one-bedroom units.
Explore Cost Effective Real Estate Opportunities in Athens
Athens offers Europe’s third-highest rental yields (5.5%) after Istanbul and Zagreb (Savills). The Hellinikon Project, set to add 10,000 jobs and a €8 billion GDP boost by 2030, is elevating adjacent suburbs like Elliniko and Alimos. Investors can target pre-construction units here for capital appreciation potential of 7–10% annually.
Athens vs. Europe’s Major Markets: A Cost-Benefit Analysis
Per Savills, Athens’ RevPAR growth (15%) dwarfs Paris (6%) and Berlin (8%). Entry costs are also lower:
Athens: €250,000 buys a two-bedroom unit near the city center.
Amsterdam: Similar properties exceed €600,000, with yields below 3%.
Dubrovnik: Higher tourism premiums but stricter rental regulations.
Source: grandviewresearch.com
Top 16 European Cities for Expansion in 2024
Savills ranks Athens 6th in its 2024 European Hospitality Index, citing its post-pandemic recovery and infrastructure investments. Top cities include:
Lisbon: Tech nomad demand drives 14% ADR growth.
Valencia: 11% YoY occupancy rise due to “bleisure” (business + leisure) travel.
Athens: Boosted by new airport routes and cruise traffic.
Source: dkg-development.com
DKG Development Investment Properties
The commitment to responsible development standards is a hallmark of DKG Development's approach. The company's pioneering efforts aim not only to provide innovative solutions for modern living but also to contribute to a sustainable future for Greek tourism. With a focus on creating distinctive properties that harmonise with the local environment, DKG is elevating the real estate landscape in Athens, Piraeus and beyond.
Part of the managed properties allure lies in their agility and adaptability. The sector's relative youth allows for nimble responses to customer feedback and rapid implementation of solutions. Limehome, a strategic partner of DKG Development, exemplifies this agility by integrating technology into its operations, ensuring a seamless and responsive guest experience. Investment properties resilience during the pandemic is attributed to their ability to cater to both short- and long-stay requirements.
The fusion of comfort, flexibility, and technological innovation propels this dynamic partnership into a new era of hospitality, inviting guests to experience the best of both worlds.
Final Thoughts
The Hellenic rental market is a convergence of tourism resilience, regulatory ease, and undervalued assets. With Athens’ hospitality metrics outpacing much of Europe and luxury demand soaring, investors can capitalize on short-term gains while hedging against inflation. Pairing data-driven location choices—like Piraeus, a strategic gateway fueled by cruise traffic and infrastructure upgrades—with sustainability and tech enhancements will maximize returns in this dynamic market.
Sources:
Savills. (2024). Spotlight: European hospitality (Q1 2024). Retrieved from https://pdf.euro.savills.co.uk/european/spotlight-european-hospitality---q1-2024.pdf
Grand View Research. (2023). Managed apartment market outlook: Europe. Retrieved from https://www.grandviewresearch.com/horizon/outlook/serviced-apartment-market/europe