Greece tops the list of preferences for the international investment community, with 43% of investors considering our country the most attractive European destination.
Data from two new international surveys by Questex reflect a significant shift in Greece’s profile as an investment destination, as the country has climbed from fifth place—where it ranked in the previous survey—to first.
According to the findings, Greece accounts for 43% of investor preferences, followed by Italy with a 29% share, and then Spain and France, each with 14%.
The survey reflects the broader shift of international investment capital toward Europe. Eighty-two percent of investors state that the European market is a priority when it comes to implementing their investment plans, while 63% view Europe as a significant investment opportunity.
In fact, geopolitical uncertainty is acting as a catalyst for the redirection of capital toward markets considered more stable and predictable. Within this context, Greece is strengthening its position, as it combines a strong tourism offering, international demand, and opportunities for value creation.
Moreover, the country’s geographical location at the crossroads of Europe, the Middle East, and Asia is a significant advantage, as it positions Greece as a key gateway to the European market.
None of the survey participants stated that they are reducing or suspending their investment activity due to the uncertain geopolitical environment. On the contrary, 57% stated that they are shifting their investments toward alternative European or more resilient markets, with Mediterranean destinations—and Greece in particular—being the primary recipients of this redirection of capital.
The major shift observed in investment strategy concerns the type of real estate that capital is seeking. According to Alexi Khajavi, President of Hospitality & Operational Real Estate at Questex, investors are no longer focusing as much on projects that require development from scratch (greenfield projects), but rather on mature, operating assets that can be upgraded to create additional value.
“The development of new hotel properties continues to be viewed as a higher-risk investment. There are many factors that can affect the completion of a project,” he noted.
The previous model involved purchasing a lower-category hotel, investing capital in renovations, and converting it into a higher-category property. Today, interest is shifting more toward existing high-quality properties, including five-star hotels that carry an international brand.
More specifically, according to a survey by Hospitality Investor, 57% of participants are seeking professionally managed five-star hotel assets, while 29% are considering three-star resorts with the potential to generate added value through upgrades. Conversely, urban hotel assets are no longer a priority for investors.
The Greek market offers a limited number of such opportunities. Demand from international capital is growing, but the supply of mature investment products remains low.
“Investors are seeing significant growth in tourism, an increase in arrivals, rising tourism spending, and the potential to generate new value,” emphasized the head of Questex.
As he noted, Greece has become one of the most attractive tourist destinations, drawing travelers from Europe, the U.S., and Asia.
In contrast to mature markets such as the U.S., where a large portion of the hotel inventory is already developed, Greece still offers opportunities to upgrade existing properties and create added value.
The broader market picture confirms, however, this shift among investors toward upper-upscale and luxury properties, featuring strong brands, professional management, and the ability to maintain high rates.
In terms of destinations, investment interest remains concentrated in Athens and the Greek islands, with popular tourist destinations leading the way. The Greek capital remains the top choice for investors, with Mykonos, Santorini, Paros, and Naxos attracting strong demand.
Positive signs are also emerging for Kalamata, due to infrastructure development and the upgrade of the city’s airport, as well as for Crete, where improved connectivity is creating new opportunities in conjunction with the construction of the new airport in Heraklion.
In contrast, investment interest remains limited in northern Greece, Thessaloniki, and mountain destinations.
The Challenges
Despite the positive investment climate, the Greek market continues to face significant challenges.
According to Alexi Khajavi, one of the most significant issues for the Greek market is the limited presence of international operators. “Greece has not yet seen the same level of development of so-called ‘white-label operators’—that is, companies that manage hotel properties without owning them and without necessarily operating under their own brand. “There are some cases, but not to the extent we see in other European markets or in the United States,” he noted.
He also emphasized that some investors are now accelerating their exit from their projects ahead of schedule due to the “increasingly challenging environment taking shape in the market.”
As Alexi Khajavi noted, seasonality remains one of the key issues, since a hotel that operates for only six months a year presents a different investment profile compared to an asset that operates year-round. Extending the tourist season is considered critical for increasing returns and the value of investments.
“An investor cannot commit large amounts of capital to an asset that will operate for only six months a year,” he emphasized, adding that labor shortages, rising wage costs, and energy expenses are key factors that international investment funds take into account.
It should be noted that the survey findings reflect the trends expected to be at the center of discussions at the R&R Forum this coming November, as investment funds continue to focus on the European resort and leisure hotel sector. The R&R? Forum is organized by Questex, with Enterprise Greece participating as Country Patron.