Electronic auctions for the lease of beaches: Which beach broke the record with €487,000

The physics auctions for formation rentals crossed the state are successful the last stages of completion, a process that is ramping up the strength of the hospitality and tourism manufacture each year. This is the play erstwhile operators are virtually connected pins and needles, arsenic they conflict to either support their concern for different 3 years connected the formation they already operate, oregon to assertion a portion of beachfront for the archetypal time, paving the mode for caller players successful the market. In this environment, determination is nary shortage of fierce conflicts that instrumentality spot not successful league rooms but successful beforehand of machine screens.

Stakeholders tin ticker successful existent clip the auction unfold, perpetually seeing whether their bid keeps them successful oregon retired of the competition. This peculiar “game” is conducted without them knowing what their opponents are bidding. All that is revealed is the presumption successful which they are ranked astatine immoderate fixed moment, which often triggers successive increases and aggravated bidding fever. Amidst this bidding madness, 1 lawsuit stood retired that illustrates the grade of the competition: successful Mykonos, a conception of conscionable 500 sq m connected Lia formation was “hit” astatine astir fractional a cardinal euros, causing a sensation successful the market.

The terms of the formation was astir fractional a cardinal euros, which caused a sensation successful the market.

Super Paradise

If the lawsuit of Lia is puzzling, comparisons with different auctions travel to further reenforce the question of however we arrived astatine astir fractional a cardinal euros for 500 sq m of sand. Data from this year’s auctions for beach concessions amusement a antithetic picture, adjacent successful Mykonos itself. At Elia beach, 1 of the island’s astir celebrated and commercialized beaches, prices for auctioned sections were astir 46,900-46,980 euros.

Similarly, successful different areas of Mykonos, specified arsenic Plintri (Super Paradise), the last connection reached 88,302 euros, portion successful Agia Anna it was adjacent to 50,000 euros. In Agrari, the magnitude moved lower, astatine astir 14,000 euros, portion successful different parts of Kalafati, the formation ranged betwixt 15,000 and 49,000 euros. Importantly, these are auctioned formation sections and not areas successful beforehand of organised formation bars, which, owed to their enactment and facilities, tin enactment higher prices.

We are talking present astir a elemental beachfront concession, with circumstantial exploitation limits. The representation becomes adjacent clearer erstwhile we determination extracurricular Mykonos.

Sifnos Beach

In Sifnos, for example, the Vathi formation was awarded astir 7,800 euros. In Tinos, beaches specified arsenic Agios Fokas, Agios Sostis, and Agios Ioannis Porto, prices ranged from around 5.000 to 15,000 euros, portion successful immoderate cases they reached up to 20,000 euros. Even connected organised beaches with tourer traffic, these amounts stay astatine levels linked to the existent exploitability and expected revenues. In different words, this is simply a marketplace that operates successful presumption of a existent economy.

In this context, Mykonos remains a class successful its ain right. Despite the problems that person been recorded successful caller years successful the prime of tourism, from oversaturation to changes successful the illustration of visitors, the land maintains its individuality arsenic a apical amusement destination. It is this recognition with the precocious level of services and the aggravated tourer enactment that keeps prices astatine higher levels than connected different islands.

However, adjacent wrong this environment, astir auctions run wrong definite limits. And these limits, arsenic the information shows, person thing to bash with 500,000 euros of Lia.

The backstory connected Lia

It was not a uncommon watch, nor was it an creation coating that would alteration hands astatine an planetary auction house. It was neither a invaluable portion of jewellery nor a collector’s point that warranted a combat to the finish. And yet, the last “hit” came successful at 487,447.31 euros. The object? Five 100 quadrate meters of… soil connected a not-so-commercial formation successful Mykonos implicit a play of 3 years. If 1 lone heard the amount, 1 would easy presume that this was a existent property concern oregon astatine slightest an concern with a wide imaginable for goodwill.

In reality, however, this is an auction that leaves much questions than answers and that, adjacent by Mykonos standards, is hardly explained successful presumption of economical logic. The starting terms was acceptable astatine 48,000 euros. A sum which, though high, is considered to beryllium wrong the scope for a concession of portion of an organised formation successful Mykonos. However, the improvement of the process was much reminiscent of an auction of a enactment of creation than a lease of nationalist space.

According to “THEMAS”, 3 were the main contenders: 2 Italian businessmen (one of them the proprietor of a edifice already operating connected the beach) and a Mykonian, besides with a concern beingness successful the area, down the Italian’s business. The process turned into a contention without brakes. Bids kept rising astatine a gait that amazed adjacent radical who person attended dozens of auctions.

Show of force

Against this backdrop, the terms soared to astir fractional a cardinal euros, creating an effect much akin to a amusement of unit than an concern option. And this is precisely wherever the main occupation lies. The economical equation does not adhd up. Everyone who knows the formation barroom and formation exploitation marketplace is unequivocal. By Lia’s standards, paying disconnected specified a sum successful 3 years is practically impossible. Even successful optimistic scenarios, with precocious occupancy, accrued consumption, and premium pricing, the gross from sunbeds, drinks, and nutrient is not capable to screen specified an expense, fto unsocial make a profit. And that’s without factoring successful operating costs, staff, supplies, and different expenses.

The constituent that makes the equation hard is the capableness of that peculiar department. According to the farm’s data, nary much than astir 55 umbrella seats tin beryllium placed successful the 500 quadrate metre section. Simply put, determination is simply a “ceiling” connected the gross the abstraction tin bring in, nary substance however precocious the prices are.

The equation is analyzable by the quality of the beach. Lia, though it has a loyal assemblage and a peculiar character, is not among the “heavy” tourer options connected Mykonos. Its season, arsenic professionals successful the assemblage constituent out, is fundamentally 2 months long, July and August. Outside of this period, visitant numbers driblet significantly, drastically reducing revenues. It is 1 of the astir distant beaches connected the island, astir 14 km from Chora, which affects the travel of visitors. It is not a archetypal prime for the mean tourist, nor does it person the changeless postulation that characterises much salient beaches. A examination with Elia is typical. There, the play starts earlier, lasts longer, and the formation is larger and amended known to the planetary public.

Visitor numbers are unchangeable and crowded, creating antithetic economical conditions. In Lia, by contrast, the nett borderline is limited. Of course, immoderate bidder tin marque the bidding barren, with the lone nonaccomplishment being the 5,000 euro warrant letter, alternatively than incurring a outgo that cannot beryllium recouped.

E-tenders

The e-auctions for the concession of the usage of the seashore and formation were archetypal implemented successful 2017, attempting to bring bid to a tract that for years had operated with opaque procedures and important discrepancies successful presumption of prices.

Gradually, the exemplary was extended to much and much regions of the country, establishing a caller civilization successful formation management. The breakthrough came successful 2024, with the enactment of Law 5092/2024, which established physics auctions arsenic the exclusive mode of granting the alleged “free formation sections”. These are areas that are not straight granted to adjacent businesses, specified arsenic hotels oregon formation bars, but are enactment connected the marketplace done an unfastened process wherever immoderate funny enactment tin participate.

Currently, the strategy is afloat automated, with the auctions taking spot exclusively done the integer level of the Ministry of National Economy and Finance and the gov.gr portal.

Interested parties volition beryllium capable to beryllium informed successful existent clip astir progressive notices, taxable bids, and show the advancement of the process. At the aforesaid time, circumstantial conditions and restrictions person been acceptable with respect to the usage of the concession areas, specified arsenic the permitted coverage, the fig of umbrella seats, and distances, successful bid to guarantee that the exploitation takes spot wrong a tenable framework.

However, arsenic much caller cases show, the beingness of the integer strategy does not needfully mean that the last results are ever wrong economical logic. In immoderate cases, competition, subordinate strategy, and the pursuit of power of circumstantial points pb to prices that depart from the mean marketplace norms, bringing backmost the treatment not astir the process, but astir the result itself.