BUSINESS

Athens realty still a goldmine

NIKOS ROUSSANOGLOU

TAGS: Property

The prospects of the Greek commercial property market remain strong, at least as far as the projected course of sale prices and rental rates is concerned.

This upbeat outlook was provided by foreign and Greek institutional investors who participated in this year’s survey on the prospects of the European property market next year by PwC for the Urban Land Institute.

The survey placed Athens ninth among 31 cities in Europe based on the estimated course of prices and rent for investment properties (e.g. office buildings, logistics centers, etc.). This is regarded as an important development amid the pandemic, with institutional investors agreeing that the Athens realty market offers significant opportunities for future capital gains and rental revenues.

“The Athens market did not have the time to emerge from its recent downward cycle formed during the financial crisis, so there still is a significant scope for future capital gains, both on rental rates and on prices,” Eri Mitsostergiou, ULI president for Greece and Cyprus and head of the European research department at Savills property consultants, told Kathimerini.

“Several European cities reported an increase in prices and a reduction in returns in previous years, which has not happened in Athens to the same degree as the rebound started later. Athens is also considered a safe investment choice for several institutional investors due to the shortage of quality properties. It is therefore estimated that existing good-quality buildings will maintain and possibly increase their value in the future, in contrast with properties of lower standards,” she added.

The dominant trend among investors concerns a swing towards safer choices of properties and markets due to the pandemic, adds Mitsostergiou. Notably, in last year’s survey Athens topped the chart.

The Greek capital’s overall investment prospects for 2021 also remain positive, meanwhile, though there has been no improvement to its position on this chart, as it remained in 28th place, like last year. This is not due to any specific reason, but rather to the size and shortage of properties that prevent it from rising among its peers.

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