BUSINESS

REICs go it alone on property developments

NIKOS ROUSSANOGLOU

TAGS: Property, Business

New property developments have been on the rise in recent months, as investors and developers make targeted investments to cover the gap created in the last decade of market idleness.

Even so, it is estimated that the new office buildings under construction do not exceed 65,000 square meters in total, though they have largely secured tenants already, at least provisionally. However, this figure is expected to grow considerably after the fall, as a series of new projects concerning the reconstruction of existing buildings and the development of plots are in the licensing stage.

Sector officials note that such developments will allow real estate investment companies (REICs) to have full control of the investment product they wish to create, setting the precise standards and the partial features they desire so as to secure the biggest possible capital gains.

For example, NBG Pangaea REIC has started a number of new property developments on its own, mainly office buildings, such as the construction of a new, 15-million-euro bioclimatic structure in Maroussi, north of Athens, and a 4-million-euro student accommodation complex in the northern port city of Thessaloniki.

Another important move comes from Dimand Real Estate, which intends to develop two buildings it is about to acquire in Athens from the Bank of Cyprus into offices.

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