Real Estate: The Prospects for Residential Development in the Greek Market

With the urban development of the Ellinikon project, in the Athens Riviera, fully underway, attracting both domestic and international investors, along with a number of residential projects also progressing in Athens and other urban centers, there are speculations on the growth prospects regarding the real estate in Greece.

According to the CEO of Wealth Avenue PLC, a Cyprus Stock Exchange-listed company active in the market of real estate in Greece, there is a gap in the Greek market for residential developments involving investments between 1 and 10 million euros.

Local small-scale developers lack the liquidity for such projects, while large players do not include them in their business plans. The scale of residential developments varies depending on the area. Different needs and infrastructures exist in regional cities, Thessaloniki, Patras, Heraklion, and each municipality in Athens.

One of the most crucial factors when choosing a location is the property site, its proximity to major transportation hubs or road networks, as well as its distance from the sea are to be considered.

Additionally, factors like purchase price or profit-sharing percentages should be assessed to classify the investment as an opportunity in the Greek property market. The potential demand from foreign buyers is also a key factor, which is addressed through partnerships with foreign companies.

Residential Projects

Property prices per square meter differ depending on the area, targeting specific income brackets. For instance, in an Athenian suburb, new apartments might sell for 2,500 euros per square meter, meaning an 80 square meter apartment costs 200,000 euros, while in the southern suburbs, prices might start at 6,000 euros per square meter, with an 80 square meter apartment costing half a million euros.

A positive development is that banks have resumed lending, typically requiring a 30% down payment, but this limits access for many young people who don’t usually have the necessary amount.

What is more, building projects are now constructed following architectural plans, something that was not commonplace in the past. Aesthetics, construction quality, and energy efficiency are crucial, and new technologies are standard rather than a luxury.

Source: tovima.com