The Greek Real Estate Market in October

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With market experts claiming that the RE crisis is left behind in Greece and prices picking up, the market now looks to logistics, office spaces/buildings and residences. As discussed in major Real Estate events in October, suburban residential properties are in high demand, but the residences need to become “greener”.

Meanwhile, some 300 thousand properties are expected to enter the market from the banks through auctions, but not all at once: 20 to 30 thousand/year. Projects Skyline (Alpha Bank) and Terra (Piraeus Bank) with thousands of properties each are expected to be awarded to the highest bidder latest in November.

According to the published reports, it’s been a busy first half of the year for MRICS, which invested mostly in offices, real estate, land, and logistics.

There have not been many announced deals in October, but there is mobility in the hospitality sector, where new hotel permits have been announced, while investors and management companies keep expanding their hotel portfolios.

At the NPL transaction field, the systemic banks keep unloading portfolios to be able to reach their NPL ratio goals by the end of the year. In October Eurobank agreed with doValue Greece the sale of “Mexico” portfolio (€5.2 bn), and NBG announced the completion of the deal with Bain Capital Credit and Fortress Investment Group as well as doValue Greece for the sale of 95% bonds of Mezzanine and Junior repayment priority through securitization of an NPL portfolio s with a total book value of about €6 bn.

More specifically, in

Hospitality

Lots of news coming from the hospitality sector in October, an important being the sale of the five-star Lindian Village Hotel in Rhodes to Zetland Capital. The price for the 188-room hotel surpassed €27 m, and the agreement is expected to be completed in early 2022. At the same time, Intracom group announced the binding agreement for the sale of hotel and villas under development in “Kalo Livadi” of Mykonos. The luxury resort is being built on an area of 100 sqm in a joint venture with London Regional Properties, and it is an investment of approximately € 100 million. The complex has 75 suites, two restaurants, a spa and 12 villas for rent or sale with private access to a small beach. The 50% owned by Intracom was sold for €28.5 m to Amicross Ltd.

In Crete, the Elounda Hills project enters its final stretch. The Planning Authority issued the approval for the entry permit to the construction site and soon a decision by the Ministry is expected to be signed, which will mark the beginning of the works in ​​approximately 700 sqkm. The investor’s goal is to create a tourist village with a budget of about 550m euros, which will be a reference point for luxury tourism in the southeastern Mediterranean. The same with the project of Dimand and Prodea in Crete, that also received permits for its hospitality (two hotels) and residential project in Chania. In Athens, Brown Hotels launched a new hotel, and another launch is expected soon.

In the center of Athens, Intrakat is expected to deliver the first 5-star hotel “Xenodocheio Milos”, an investment of € 8.5 million, by the end of 2021. The hotel is under construction at the junction of 3-5 Kolokotroni and Voulis streets at a building, which belongs to the Army Share Fund. The hotel is formed by twin properties that will later be consolidated by a glass addition to the top floors.

In Crete, HRADEP has put up for auction the land property where the former American base used to be, in Gournes, Irakleio, and 4 companies have expressed interest: COMER GROUP, CLUB HOTEL CASINO LOUTRAKI A.E. – LYKTOS HOLDING Α.Ε. – DIMAND SA – REDS SA, – and VIVION INVESTMENTS S.à r.l. According to HRADF at the property can be developed a mixed-use project with tourist infrastructure, casino, and a theme park.

Commercial use /Alternative Assets

One of the biggest buildings in the center of Athens will be put up for auction. The former, legendary Minion shopping center has an area of 20 thousand sqm, and occupies a whole block.

At the same time, AVAX Development and Dimand reached an agreement to jointly develop a modern mixed-use building complex on a plot of 18,730 sqm in Neo Faliro. The plan is to develop a mixed-use building with offices and, while the total investment is expected to exceed €100 m.

In the logistics sector, BriQ Properties announced that it has signed a lease agreement for the logistics center it is developing in Aspropyrgos. The 40 thousand sqm property will be leased by Quest Group.

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