A Literature Review and Emerging Trends on Key Topics of Risks and Challenges Facing Tourism Real Estate Investments
Keywords:tourism real estate, risks, challenges, strategies, economic, environmental, political impact
Tourism real estate entrepreneurs and general real estate investments face a multitude of risks and challenges that can impact their success. These risks can stem from economic, environmental, and political factors. Economical risks such as inflation and recession can affect the demand for real estate investments. Environmental risks such as natural disasters or climate change can lead to damage to the property and the desirability of the location. Political risks such as changes in regulations or geopolitical tensions can also affect the success of the investment. This paper conducts a literature review in order to mitigate these risks for entrepreneurs and real estate investors before making investment decision. This paper includes analyzing the local market, understanding the demographic trends, and identifying potential challenges that may arise. Moreover, the implementation of risk management strategies and the existence of a contingency plan can contribute to the stability and sustainability of this type of investment with a focus on real estate, especially tourism real estate. Further research and analysis are needed to better understand the impacts of technological advancements on the real estate industry. Advancements such as virtual reality and blockchain technology have the potential to revolutionize the industry, but there is still much to learn about how they will affect the market. Additionally, the impacts of climate change on the real estate industry need to be further explored. As extreme weather events become more frequent, it is important to understand how this will impact the desirability of certain locations and the potential for property damage. In conclusion, the risks and challenges facing tourism real estate entrepreneurs and general real estate investments are numerous and varied. It is essential for investors to conduct thorough research and analysis before making any investment decisions and to implement risk management strategies to protect against unexpected events.
This work has been partly supported by the University of Piraeus Research Center.
Copyright (c) 2023 Ioannis Anastasopoulos, Sotirios Varelas
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