Major tourism investments in our country are on track to be implemented, confirming market estimates that both developments and the arrival of foreign investors will continue, despite the global economic situation.
The main reason why the real estate market shows this resilience is the fact that the Greek economy, emerging from an almost ten-year crisis, is “thirsty” for investments. The competitive real estate prices and the expectations of upward movement of rents, combined with the satisfactory yields offered in relation to mature European markets, attract strong investment interest both from domestic institutional investors, including the Greek AEEAP, and from international investors who come in search of higher returns on their investments. Today, 6 major tourism investments are in the works.
Little Elliniko in Crete
The first concerns the area of 345 acres within the former American Gourni Base in Heraklion, Crete, also known as “little Elliniko”. The project contract is expected to be signed in the coming days between TAIPED and REDS, which emerged as the highest bidder in the relevant tender at the beginning of December 2021 through the electronic auction process (e-Auction). The price paid by the company amounted to 40.2 million euros.
The coastal area under development, with a total area of 345,567 sq.m., is located 13 km from the airport “Nikos Kazantzakis” and 16 km from the city of Heraklion. Also, the property is in contact (frontage 320 m.) with the old National Road of Heraklion – Agios Nikolaos and has direct access to the Northern Road Axis of Crete. In the last 20 years, the Hellenic Center for Marine Research, the “Thalassokosmos” Aquarium, the International Exhibition and Conference Center of Crete, etc. have been developed on adjacent areas of the property.
The plan promoted by REDS envisages a range of developments including hotels (4 and 5 stars), guesthouses, convention and exhibition centre, holiday homes, shopping malls, marina, helipad and other uses.
The investment in Gournes of Heraklion is expected to be one of the largest tourist projects to be built in our country in the coming years. It is expected that the investment will attract significant domestic and international funds, as well as a significant tourist stream, contributing substantially – in combination with the other major projects that will be carried out on the island – to the upgrading, promotion and economic development of Crete and, by extension, of the country and the Greek economy.
According to what the management of REDS had previously stated, the total amount of the investment will reach 200 million euros, while the development schedule is from 5 to 7 years.
Finally, with regard to the casino that will be developed within the area, the Gaming Supervision and Control Committee (EEEP) is in constant contact with REDS, with the aim of launching the tender for the granting of the license, within 2023, according to the standards of competition for the casino in Elliniko.
TEMES’ new investment
The construction of the new five-star tourist accommodation, with a capacity of 487 beds, in the location “Karya or Velika” in the Messinian Gulf, launched by TEMES, is also underway. This is a new investment, with a budget of 49.81 million euros, the financing of which will come from own participation (for 25%), from a medium-term loan (for 45%) and from the granting of aid (for 30%).
According to the Environmental Impact Study, the proposed project concerns a main hotel accommodation (5-star hotel) with a total capacity of 487 beds, which is being developed on an area of 81,147.24 sq.m. and consists of two distinct structural units, as well as the necessary accompanying facilities as follows:
– Hotel complex (eastern part) (107 keys – 220 beds): Includes 107 rooms, lobby reception, bar, restaurant, outdoor oven, outdoor cinema, library, outdoor gym, worship area, wellness area, swimming pool, garden edible, common areas.
– Hotel complex (western part) (130 keys – 267 beds): Includes 130 rooms, lobby reception, bar, restaurant, outdoor oven, outdoor cinema, swimming pool, wellness area, common areas.
– Community and functional spaces (common facilities): Another investment being promoted concerns the construction of a 5-star hotel unit, with a capacity of 160 beds, at Kavros, outside the boundaries of the Apokoronou Municipality settlement in Chania, owned by LYRA IKE. A complex of 5 buildings will be developed on an area of 20,000 square meters.
The investment in Elounda
The Elounda Hills project, the tourist project of Mirum Hellas in Crete, is entering the final stretch. It is expected that all the relevant permits will be issued by the summer and the construction of the first phase of the project will begin in early autumn.
The estimated cost of the total investment (including reinvestments) amounts to approximately 500 million euros and is based on the company’s own funds, bank loans and pre-sales of houses. The project will occupy a total area of 56 hectares, with its completion placed in 2027, while by the summer of 2026 a significant part will have been completed.
Within the framework of the first phase of the project, with a total budget of 400 million euros, two luxury hotels are expected to be developed. One of them, with a capacity of 137 rooms, together with 66 branded villas and 81 branded apartments will form the central core of the project. The second hotel, with 15 rooms, will be developed in the area where the marina will be built, which will be able to berth 64 boats. In addition to the two hotels, as part of the first phase of the project, 31 branded apartments, 2 non-branded villas, 80 non-branded apartments, as well as additional related infrastructure will be created, with the selling prices of the branded homes starting from approximately 1, 5 million euros and may exceed 7.5 million euros.
The second phase is regional and includes an additional 31 branded apartments, 2 non-branded villas and 80 non-branded apartments, as well as additional related infrastructure and amenities.
The sale prices of the branded homes start from around 1.5 million euros and can exceed 7.5 million euros.
Grivalia’s new investments
In the summer of 2023, the ultra-luxury hotel One & Only Aesthesis is expected to start operating in the former “Asteria” of Glyfada. The luxurious facility, which is located within an area of 20 acres, will consist of 128 rooms and suites. The project will have 128 keys, of which 116 are bungalows, suites and villas.
Grivalia’s second project that will premiere in 2023 is the ultra-luxury glamping that is being developed in Voula, while, as the president and CEO of Grivalia Hospitality, G. Chryssikos, recently announced, “a high-quality product is being created, which will set Attica and Greece on a completely different level on the world map, equivalent to that of other European cities, such as Madrid and Barcelona”.
With this investment, which has been subject to the provisions of the development law, the existing tourist camp of the EOT will essentially be revived, with the final classification of the facility in the 5-star category, transforming it into a modern form of glamping (glam camping).
In the redevelopment of the entire area, apart from the campsite, a restaurant, a refreshment stand, a children’s playground, a daycare area with a library, a shop, a cinema, a gym, a regeneration centre, sports fields and an extensive network of footpaths and cycle paths with simultaneous dense planting and outdoor seating are planned, thus offering a leisure oasis on the beach front of Attica.
The new investment in Saronida
A new strategic investment of 840 million euros was recently approved by the Interministerial Committee for Strategic Investments. This is the investment “Saronida Olympos Golf Project” of the company “Beta Real Estate Development SA”.
The new investment concerns the tourism development of a property in the area of Saronida. The object of the specific project is the creation of a complex tourist accommodation, with a golf course, a heliport, a tourist village, a tourist port, as well as facilities for the production of Renewable Energy Sources.
The area is located in Saronida and consists of 6,500 acres. It includes plots of the building cooperative “I Hygeia”, as well as other adjacent lands in the area that starts about 1 kilometer after the Grand Resort Lagonissi. The area reaches the northern and eastern borders of Saronida, while it also includes part of the mountainous mass behind Saronida.
The investment will also include hotel units and residential complexes, commercial areas, as well as the largest golf course in Attica, 18 holes and of international standards. The beach front will also be shaped, while works will also be done for the mooring of boats (marina).