Thursday November 27, 2014 Search
Weather | Athens
14o C
8o 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)  
ILO report warns of prolonged social crisis unless steps are taken in employment
Greek tobacco firm Papastratos planning 25-mln-euro investment
Bourse index recovered on Wednesday
EU finds seed money for investment plan to unlock EIB funds
Ship with 700 migrants safely towed to Greek coast
Officials say a broken-down smuggling ship carrying 700 men, women and children trying to emigrate to Europe has been safely towed to just off the southern Greek island of Crete. Authorities...
Independent Greeks MP to be questioned over bribery claims
Independent Greeks MP Stavroula Xoulidou is to appear before a Supreme Court prosecutor on Thursday to answer questions regarding claims that she was offered a bribe to back the government's...
Inside News
SOCCER
Atletico drubs Olympiakos 4-0, leaving Reds with slim chances of CL qualification
Atletico Madrid avenged its 3-2 defeat in Piraeus in September with a 4-0 win over Olympiakos on Wednesday, meaning the Greek champion only has mathematical hopes left for a spot in the next...
SOCCER
Atletico eyes last 16 berth against Olympiakos
Greek champion Olympiakos faces a tough task if it is to prevent last season's beaten finalist Atletico Madrid sealing its passage into the last 16 of the Champions League at the Vicente Cal...
Inside Sports
COMMENTARY
Scraping together the 180 MPs will not be enough
Even if the coalition government was to scrape together the 180-MP majority it needs to elect a new President in the 300-seat House, skeptics say, what will change really? There is one evide...
EDITORIAL
Taking back whats stolen
A large group of public prosecutors and state officials (coming from various departments) have been working on major corruption cases. Of course it is their duty to do so, yet their actions ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Ship with 700 migrants safely towed to Greek coast
2. ILO report warns of prolonged social crisis unless steps are taken in employment
3. Greek tobacco firm Papastratos planning 25-mln-euro investment
4. Independent Greeks MP to be questioned over bribery claims
5. Greece paralyzed by major strike, flights cancelled
6. Chief suspect in Piraeus bar shooting arrested
more news
Today
This Week
1. Troika talks to continue after failure to wrap up negotiations in Paris
2. Greece scrambles to find food, shelter for 700 migrants on crippled ship
3. Greek diplomat dies in fall under Thai train
4. Chief suspect in Piraeus bar shooting arrested
5. Greek, German, Portuguese, Spanish debt to benefit most from ECB QE - ABN Amro
6. Bourse index recovered on Wednesday
Today
This Week
1. Give Greece a chance
2. Biden heads to Istanbul amid tension over Cyprus EEZ violation
3. Scientists expand excavation of ancient Amphipolis
4. Extremism from a bygone era
5. Piraeus nightclub shooting leaves 3 seriously injured
6. Coscos Greek unit adds multinational rail-freight client
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.