Greece seeing fresh wave of property investment amid demand for serviced apartments

Greece’s property sector is seeing a fresh wave of investment, as both foreign and domestic developers look to expand the country’s offerings of serviced apartments, tapping into one of the fastest growth segments in global real estate.

In the last several months, foreign investors like U.S. hospitality giant Wyndham Hotels & Resorts, Spain’s Libere Hospitality Group, Israeli-backed company Vision Greece and Germany’s Limehome have announced plans to expand into Greece’s newly developing serviced apartment market.

At the same time, Greek companies like DKG Development and Zoia are also developing projects, either on their own or in partnership with foreign investors. Likewise, Greek unicorn Blueground – one of the country’s most successful startups – has been riding the global trend for several years.

Occupying a niche between hotels and long-term rentals, serviced apartments cater to rising demand from both business and leisure travelers for flexible, medium-term accommodation with select amenities. Guests can range from corporate professionals on long-term assignments to long-stay vacationers, and from globe-trotting digital nomads to university students.

Capitalizing on this emerging segment, investors – both in Greece and abroad – are increasingly building new developments or else repurposing existing properties. According to some market estimates, there are already 3,500 serviced apartments in operation around Greece and another 1,000 could be added by the end of next year. Globally, the serviced apartment market is estimated at more than $100 billion and is projected to grow at a cumulative aggregate growth rate of 12.7% through the end of the decade.

By the end of next year, for example, Wyndham will be offering travelers options in two new residences near Athens and in northern Greece. The first, Wyndham Residences Piraeus Marina Zeas, which is being developed in conjunction with DKG, comprises 72 units in two adjacent 8-storey apartment buildings in the port city of Piraeus. The second, in conjunction with Oikos Property Developments, comprises 150 villas with full hospitality services.

Separately, DKG has six buildings comprising 400 units under development around Piraeus and recently signed a management agreement with Libere for a unit in the nearby Dafni municipality of greater Athens.