On the origins of tourist urbanisation in Greece: Land speculation and property market (in)efficiency

This paper places issues of land speculation and property market efficiency within the limited geographical context of a tourist-agglomeration development process in the island of Rhodes, Greece. The study is based mainly on the elaboration of diachronic cadastral data, covering the period from the very beginning of the tourism development in what as of a formerly an agricultural area, until its establishment as an international mass tourist destination. The economic and financial dimensions of land speculation on market efficiency are explored, through a socio-economic perspective. Land property ownership structures, state policies and bank financing practices have produced synergies that encouraged land speculation, with ambivalent effects on space, property markets and tourist activities. Finally, it is argued that land speculation may be regarded as a socially embedded rational action, which leads to an overall inefficient land market.