The Greek Real Estate market slowed down even further in July, with very few transactions being completed and investors looking mostly for the dust of the pandemic blast to setlle down. The state regulation to help the market has been more than welcome by owners and tenants , even though, according to the market players it may not be enough. The state has also decided to help the borrowers with a mortgage by chipping in with a percentage to their monthly installments in order to avoid a new wave or mortgate NPLs.
According to DBRS, the pandemic could bring a shock to the Greek Real Estate market. The unprecedented economic shock will have a negative impact on construction activity and real estate transactions in the second quarter of 2020, while increasing uncertainty about market developments and prices in the second half of the year, says the rating agency.
Meanwhile, the second quarter of the year ended with a 15% drop in the values of commercial stores, according to the market players. The corresponding decline in office buildings approached 12% compared to the previous high of 2019.
Meanwhile in Cyprus the state statistics agency revealed the data for the RE prices during the first quarter of 2020, just before the pandemic. According to these, there has been an increase in the prices of residential properties by 2.5% compared to the last quarter of 2019 and a 1.1% increase compared to the corresponding quarter of 2019.
Despite 2020 being a very bad year for the hospitality industry in Greece, the investors are getting ready for future seasons. The authorities have given a green light for 8 hospitality investments totalling € 1.1 bn Three of the resorts will be built on Ios island, one in Peloponnese, one in western Greece, in Aktio Vonitsa, two on Mykonos island and one, a marina at Vlychos on Lefkada island.
Even though there have not yet been significant changes in residential rents especially in popular areas of the cities, analysts say that his may change in September/October with a drop of prices due to the pandemic.
Meanwhile, Intercontinental International REIC informed the investors that it proceeded with the sale of a residential property with total surface 265 sqm located at 79, Vasilissis Sophias Avenue, Athens. The sale price reached €715.000.
Despite the pandemic, Trastor REIC announced the acquisition of a retail property in Piraeus. According to the announcement, “following the General Shareholders Meeting approval granted on 09.05.2019, Trastor REIC announces the acquisition of a retail property in Piraeus. The property is located at the most commercial high-street in Piraeus, at the junction of Kountouriotou Str., Sotiros Dios str. and Praxitelous str. The total surface area of the property is 333 sq.m. and consists of basement and ground area with mezzanine and is fully let. The acquisition price is €1,465,000.
The pandemic has also hit the malls all over the country. According to the date released in the Landa Development newsletter, the three Lamda Development malls are gradually getting back on track. Of the three, the Mall Athens suffered the biggest blow from the pandemic. According to the data, a week before the newsletter drafting there was a drop in traffic by 47% compared to the same week of 2019. The impact on Mediterranean Cosmos is smaller (-28 %) and in Golden Hall (-13%). The traffic is not comparable not only because of the pandemic but also because there was no simultaneous start of all areas of activity of the malls after the end of quarantine.
Piraeus’ landmark tower to get a 99-year lease and a facelift Prodea Investments and Cante Holdings Ltd announced the signing of the 99-year concession for Piraeus Tower, one of the most emblematic commercial buildings in Piraeus. The concession has been granted by the Municipality of Piraeus to Piraeus Tower S.A., a joint venture between Prodea Investments and Cante Holdings, for an initial annual consideration of €1,010,000. Prodea Investments holds a 30% stake in Piraeus Tower S.A. whereas Cante Holdings Ltd holds 70%. Cante Holdings Ltd is a joint venture between Dimand Group (65%) and EBRD (35%). The 22-story tower, the municipality’s largest asset, has been in disuse for over 45 years. Piraeus Tower is the second tallest building in the wider region of Attica.
On another note, Amazon Group is preparing to operate a local office in Greece. Reportedly, the office will be part of one of its main activities. More specifically, the company “Amazon Data Services Greece SA” has been established and has its headquarters at 280 Kifisias Avenue in Chalandri.