Athens Apartment Portfolio: Acquisition, Renovation and Short Term Rental Strategy

Navigator Consulting developed a feasibility study, business plan and financial model for the acquisition, renovation and operation of a portfolio of small residential apartments in central Athens. The investment strategy initially covered 20 apartments and was subsequently expanded to assess a portfolio of 30 properties.

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The project was developed during a period of exceptional disruption in the Greek property market. Residential property values had fallen substantially following the sovereign debt crisis, prolonged recession and the introduction of capital controls in 2015. This created an opportunity to acquire well located apartments at historically low valuations and reposition them for the growing short term tourism rental market.

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The proposed properties were concentrated in Pangrati and Mets, established residential neighbourhoods close to the historic centre of Athens. The operating concept combined individually selected and renovated apartments with centralised property management, guest communication, concierge support and cleaning services.

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What We Did

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Navigator assessed the complete investment cycle, from apartment selection and acquisition through renovation, furnishing, market positioning and short term rental operations. Our work included:

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• Development of acquisition scenarios for portfolios of 20 and 30 apartments

• Identification of property selection criteria for individual investment units

• Assessment of acquisition prices, renovation requirements and total investment cost

• Development of renovation specifications and cost estimates for each apartment

• Analysis of short term rental demand, achievable nightly rates and seasonal occupancy

• Estimation of operating expenditure, property management fees and cleaning costs

• Development of portfolio level business plans and financial models

• Assessment of investment returns, cash flow and portfolio expansion potential

• Design of a centralised operating model covering reservations, guest communication, concierge services, cleaning and maintenance

 

Property Selection and Acquisition Analysis

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Each apartment was assessed against a structured set of investment and operating criteria, including:

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• Location and proximity to the historic centre

• Neighbourhood quality and tourism appeal

• Acquisition price and estimated renovation cost

• Floor level and accessibility

• Number of bedrooms and potential guest capacity

• Street or courtyard orientation

• Balconies and external areas

• Natural light

• Noise exposure

• Building condition and common areas

• Layout efficiency

• Suitability for independent guest access

• Expected nightly rate and occupancy

• Potential resale value

 

This unit level approach allowed investors to compare apartments on the basis of total investment requirement, rental potential and expected financial return rather than acquisition price alone.

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Renovation and Property Positioning

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Navigator developed renovation budgets and specifications for individual apartments. The objective was to establish a consistent accommodation standard across the portfolio while adapting each property to its particular layout, condition and target guest segment. The analysis covered:

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• Interior refurbishment and decoration

• Kitchens and bathrooms

• Heating, cooling and hot water

• Electrical and plumbing improvements

• Furniture, appliances and guest equipment

• Lighting and storage

• Security and independent access

• Photography and online listing preparation

• Contingency allowances for older residential buildings

 

Short Term Rental Operating Model

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The properties were designed to operate as independent Airbnb style tourist apartments supported by shared management infrastructure. The proposed model included:

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• Centralised reservation and pricing management

• Online distribution through short term rental platforms

• Guest communication and concierge support

• Cleaning and linen management

• Maintenance coordination

• Lockbox or other independent access arrangements

• Common operating standards across the portfolio

• Performance monitoring by apartment, location and season

 

The absence of breakfast, reception and other conventional hotel services created a relatively lean operating structure. The principal recurring costs comprised platform commissions, property management, cleaning, utilities, maintenance, insurance and local property expenses.

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Financial Modelling

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Navigator developed an integrated financial model covering the acquisition, renovation and operation of the apartment portfolio. The model assessed:

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• Property acquisition costs

• Taxes, legal expenses and transaction costs

• Renovation and furnishing expenditure

• Nightly rates and seasonal pricing

• Occupancy assumptions

• Platform and property management commissions

• Cleaning and guest turnover costs

• Utilities, maintenance and insurance

• Apartment and portfolio level cash flow

• Operating profitability

• Investment returns and payback periods

• Portfolio expansion from 20 to 30 units

 

Outcomes and Results

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The feasibility study established a structured investment and operating framework for acquiring and renovating residential property during a period of severe market dislocation. The project proceeded on behalf of private investors and anticipated the subsequent expansion of professionally managed short term rental accommodation in central Athens.

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The model combined unit level property due diligence with portfolio level financial planning, allowing investors to distinguish between apartments that appeared inexpensive and those capable of generating sustainable rental income after renovation and operating costs.

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Areas of Expertise

Residential property investment; property acquisition strategy; real estate feasibility study; property due diligence; apartment renovation; renovation budgeting; short term rentals; Airbnb investment strategy; tourism accommodation; property management; rental yield analysis; investment planning; financial modelling; portfolio management; Athens property market.​

 

Confidentiality Notice

The project reference presented here is an actual example of Navigator Consulting's experience. Stock photography and conceptual images are used for illustrative purposes only and do not depict the actual project, client, owner or location. Certain technical, financial and commercial information has been modified, generalised or omitted in order to preserve client confidentiality and commercially sensitive information.