What are the trends in the individual sectors of the real estate market and how is investment interest formed
At the center of investment interest is still the real estate market in Greece, despite the new challenges that have appeared at the international and European level.
But what are the trends in the individual sectors of the real estate market and how is investment interest formed?
According to the Research and Analysis Department of Cerved Property Services, which closely monitors the real estate market, keeps in touch with the prevailing conditions and identifies new trends, the Greek real estate market has proven to be extremely resilient and the international unfavorable economic climate does not seem to reverse the trends its upward trends.
In more detail, as stated by Dimitris Andritsos, managing director of Cerved Property Services, “in the residential sector, although inflation and the rapid increase in construction costs have adversely affected demand in recent months, the asking prices continue to show upward trends, while transaction prices remain stable. The increase in rental values combined with low bank deposit rates strengthen the investment role of housing, with the result that the housing market functions as a compensator of the inflationary risk for Greek and foreign investors”, adds Mr. Andritsos. As he points out, “the interest of AEEAP and institutional investors in housing is remarkable, which manifests itself in new residential developments, while professional development plans are being reshaped to include residences”.
Mr. Andritsos also estimates that “the acceleration of the growth rates of e-commerce and the consolidation of online markets established during the pandemic period created increasing needs of companies for storage, management and distribution of products and a strong demand not only for large-scale logistics but also for smaller warehouse buildings near the centers of large cities to serve the needs of the last mile and dark stores (storage center for the service of electronic orders). Therefore, all Greek AEEAP and many commercial companies are developing and acquiring new modern warehouses, price trends are upward while yields are falling. The logistics sector has been particularly favored in recent years and this is expected to continue.
Regarding the rest of the commercial properties, offices and shops, the managing director of Cerved Property Services (a member of the European AVM Alliance) states that “the market moves at two speeds. Telecommuting has favored the new generation of newly built offices, increased the quality requirements of users and intensified the need for housing in safe, flexible, comfortable, bioclimatic and high-standard spaces. Modern companies are mainly looking for ‘green’ buildings and investors are complying with ESG criteria to acquire sustainable real estate portfolios.”
“These new trends combined with the lack of quality stock in the Greek office market create an increased demand for state-of-the-art office space. Therefore, AIFMs and institutional investors continue to invest in such offices. Their prices are rising, their yields are shrinking, occupancy is assured and consequently the gap between old stock and modern offices is widening. The two speeds also apply to stores where while high street and high street stores have fully recovered, secondary market stores are shrinking. However, with the expected tourism boom this summer, the retail sector will be particularly boosted in the tourist areas of the country,” he adds.
G. Gavrielidis (Elxis) – Greece is a rising star of investments in the Mediterranean
“The interest of foreign buyers for holiday homes in Greece is expected to remain strong, especially from investors from Germany,” emphasizes Mr. Giorgos Gavrielidis, CEO and founder of Elxis, a brokerage and advisory services company specializing in the field of luxury holiday homes.
“With high energy prices scaring many in Europe ahead of winter, the warm climate in places like Crete and low property prices make the Greek market even more attractive. Greece offers excellent value, something that investors are seeing more and more as the country is now the rising star of investments in the Mediterranean”, says Mr. Gavrielidis to APE/MPE and to journalist Aleko Lidorikis. “Inflationary pressures and geopolitical developments result in more intense buying activity, since in periods of high inflation real estate is an investment haven. “Data from our company shows that home sales to German nationals increased by 300% in the first half of this year, compared to 2021. This increase places German buyers in first place among holiday home buyers in the country, over investors from other European countries, such as the Netherlands, Belgium and the United Kingdom,” he emphasizes.
“Also, data from Elxis, which has been active in the real estate industry for more than 30 years, shows that Germans have the largest sums, going on to purchase homes that reach an average of 350,000 euros,” says Elxis CEO .
RES-EMP
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