Annual yields on holiday homes located on the Ionian islands, sitting between Greece and Italy, are approaching the ten percent mark amidst rising demand, says Algean Property.
In a report titled Ionian Sea: Everlasting Experience, Algean says that in 2019 gross average yields for holiday homes in Corfu reach 7 percent and 8.3 percent for Zante. On the island of Cephalonia, the yield hit 9.7 percent.
"In recent years, Russian and Middle Eastern buyers have been particularly interested in Corfu and, to a lesser extent, in the rest of the islands. Potential buyers mainly look for 2-3-bedroom properties with views and proximity to the sea," says the report.
"The average budget for holiday homes ranges between 500,000 - 700,000 euros. Up until recently, buyers were mostly retired couples looking for small houses with gardens without luxurious amenities complementing the property. However, the development of the short-term rental market in the Ionian Sea attracted buyers who, perceiving the area’s growing potential, bought properties for investment purposes, giving a new dimension and prospect to the region’s economy," it adds.
The Ionian region mainly attracts buyers from the UK, Italy, Germany and the Scandinavian countries (Sweden, Finland).
Construction activity in the region is rebounding strongly.
Last year, the number of newly built properties recorded an annual growth rate of 15 percent while building activity volume jumped by 45 percent in 2018, compared to 2017 levels. The residential stock in the area consists mainly of private, detached properties. The presence of residential complexes currently is relatively small, with the existing units usually comprised of 2 - 3 residences at most.
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