The Greek Real Estate Market in January

grecia calle tipica 1

2021 kicked off with overviews of the RE market’s performance during the last year, and estimates for the year that just started. The market in January seems to be taking slow, careful steps forward with investments limited to a few office spaces, hotels and logistics centres to help accomodate the shift to online shopping by consumers.

What seems to be missing in the last few months are foreign investments in the local RE market. This is expected to pick up again in the second half of the year, after the pandemic is limited and the market has settled down. According to the data published by the Bank of Greece, in the third quarter of 2020, €220.7 m entered the country, a size that is 25% less than the corresponding quarter of 2019. However, this is the quarter of 2020, during which the market functioned almost smoothly, as the traffic restriction measures in the vast majority of countries had been lifted.

January has been a slow month for the RE market in Greece, with very few big deals, at least according to what has been announced. Office spaces and building are still in high demand, as they are very few available in Athens, while the interest remains high for logistic centres and hotels.

More specifically, in January

Hospitality

Hotels are for sale all over the country, as the hospitality sector is considered as a safe investment in Greece. Investments in luxury hotels have not seized despite the pandemic. For example, Prodea Investments AEEAP, Invel Real Estate and Ioannis Papalekas, founder and former head of Globalworth, have joined forces, and cooperate mainly in the hospitality sector with investment in Greece and Cyprus. The specialized vehicle will be based in Cyprus. Papalekas owns 100% of the shares of The Cyprus Tourism Development Company Ltd, owner of The Landmark Nicosia hotel in Nicosia. The transaction is estimated to be completed by the end of March and it is essentially the first step for a wider cooperation between Invel, PRODEA and YODA in the hotel and hospitality area in the Mediterranean region.

Kea island seems to be getting a fair share of quality hotels. The brand new 5-star Ydor Hotel & Spa in Kea was scheduled to open in 2020, but the pandemic had other plans, and the hotel will be ready to welcome its guests from June 2021. The pandemic also delayed the opening of the One & Only Kea Resort, which is postponed to 2022. One & Only is the first %-star hotel in Greece to be built jointly by the Kerzner group and Dolphin, in an investment that will reach 150 m euros and will include private homes.

On another note, the new large hospitality investment Delphi Golf Resort by Scorpios Construction is about to restart. The investment in the area of Desfina, Fokida, includes the construction of a 36-hole golf course, a 5-star hotel with a capacity of 300 rooms and a “wellness village”. According to the project plan 400 people will be employed in the first phase of the investment, while at the full operation of the facilities, the staff will be 1,500 people

Alternative assets

The government seems to be planning the handover of OAKA (Olympic Athletic Centre of Athens) to the HRDH (Hellenic Republic Asset Development Fund) and then to privatize it. This will be done after the Olympic facilities undergo a total facelift that is expected to reach €55 m. The process of renting-transferring the Olympic facilities to the hands of individuals is already in full swing.–

Offices-Retail

Office buildings could not stay out of the big transactions in January. PRODEA Investments sold a portfolio of 18 properties, offices and stores in Greece. The total sale price amounted to €134.2 m, while the fair value, based on an estimate made by independent appraisers, amounted to €129.2 m. On another note, Trastor completed the acquisition of a 7-storey office building at the centre of Athens.

B-Exclusives

Latest news