Wednesday April 1, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Quality commercial spaces seen leading property market recovery

By Nikos Roussanoglou

The category of high-standard commercial properties will be the first to post a rebound in the local real estate market, according to a Bank of Greece report on monetary policy published earlier this week. It also notes that the prices of such properties are expected to stop declining this year thanks to the revival of investment interest in income properties as a result of the improvement in the business climate as well as confidence.

In terms of demand, the greatest interest is to be found in tourism/hotel properties, as well as the market section of leased office space and high-standard stores. The BoG notes that there is also investment interest in large, modern logistics spaces.

The report estimates that the prices of lower-league commercial properties will continue to fall over the next few quarters. A gradual recovery is expected from next year, provided that no unforeseeable circumstances arise, such as political instability.

It is worth noting that there is only a handful of quality commercial properties available that would fulfill buyers requirements. After all, combined with the absence of bank funding, the dramatic decline in rental rates and demand in previous years has led to something of a freeze in new commercial property development.

In 2013 alone rental and acquisition rates declined by 16.3 percent and 16.9 percent on average year-on-year. Now the Bank of Greece report estimates that the stock of high-standard commercial properties will show a gradual rebound in the medium term, as property development companies attempt to cover part of todays demand and will need to boost the existing supply.

Other reasons that lead investors to back out of putting their money in the market are the difficulties and legal obstacles that arise from the institutional framework, such as town-planning and land usage legislation, as well as some owners unrealistic financial demands.

Demand is often discouraged by the bureaucracy that dominates the Greek real estate market, along with a lack of clarity in town-planning regulations and the nonexistence of a complete and precise land register, the BoG report concludes.

ekathimerini.com , Friday June 13, 2014 (20:31)  
Fitch downgrades ratings of four Greek banks
Paris, Berlin see Greek-Russian courtship as sideshow
JPMorgan says Greek bond pessimism is overdone
Sarantis SA to buy Avas rights in Greece from Procter & Gamble
Greek anti-establishment protesters occupy buildings, enter Parlt grounds
Anti-establishment protesters occupied several public buildings in Greece and briefly entered the grounds of parliament in Athens on Wednesday, calling for the release of jailed members of a...
Greek panel begins campaign for WWII reparations from Germany
A Greek parliamentary committee set up by Prime Minister Alexis Tsipras's government to demand reparations for the Nazi occupation of Greece began work on Wednesday, in a move likely to heig...
Inside News
BASKETBALL
AEK could get a wild card to the Euroleague
AEK shows capable of climbing as high as third in the Basket League, as its 16-point home win over third-placed Aris on Sunday confirmed it can challenge both Aris and PAOK to the first spot...
SOCCER
Cyprus soccer eyes reunion after 60-year divorce
Turkish Cypriot soccer officials on Monday vowed to press ahead with attempts to reunite with the Cyprus Football Association, (CFA), triggering a political storm on the ethnically-split isl...
Inside Sports
COMMENTARY
Going his own way
While up until the last election we had become accustomed to referring to the coalition government led by Antonis Samaras as one featuring a split personality, no political psychoanalyst cou...
EDITORIAL
Righting the wrongs
A country that wants to move forward should study and deal with its past mistakes in a mature and responsible manner. Greece was hit by an unprecedented debt crisis and it came to the brink ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Fitch downgrades ratings of four Greek banks
2. Paris, Berlin see Greek-Russian courtship as sideshow
3. JPMorgan says Greek bond pessimism is overdone
4. Sarantis SA to buy Avas rights in Greece from Procter & Gamble
5. Greek anti-establishment protesters occupy buildings, enter Parlt grounds
6. Greek panel begins campaign for WWII reparations from Germany
more news
Today
This Week
1. Going his own way
2. Finance Ministry officials to discuss talks progress as EU pushes for action [Update]
3. Athens aims to tighten ties with Russia
4. Spike in migrants reaching Lesvos
5. Greek economy minister sees deal with EU/IMF on reforms next week
6. Buffett says Greek exit from euro may not be a bad thing
Today
This Week
1. Next Monday is D-Day for state funds
2. Eurogroup unlikely to be held soon to discuss Greek reforms
3. Moscow expects progress from Tsipras visit
4. Some more equal than others
5. Greece to present reforms by Monday, says gov't spokesman [Update]
6. Greece optimistic on deal with euro area next week
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2015, H KAΘHMEPINH All Rights Reserved.