Her investment “El Dorado”. Athenian Rivieras has been in full swing since 2019, when the country’s economy began to recover at a faster pace and the confidence of many foreign investors in Greece’s prospects was restored.
The low prices that prevailed at that time also played an important role, as a result of which many new constructions of newly built houses were started, most of which had luxurious features.
The ease with which properties worth hundreds of thousands of euros, or even millions of euros, have been absorbed has boosted investor confidence, resulting in more and more projects being launched, although construction costs have increased by around 40-50% in the last two years. Builders know that they have many alternative options for the utilization of their properties, whether e.g. through direct sales to buyers who until a few years ago did not have Greece and Athens on their “map”, either through long-term rentals, or even through short-term leases.
Many foreign investors, among them several who took advantage of the “Golden Visa” residence permit program, proceeded to buy houses in the southern suburbs with the expectation of long-term exploitation.
At the same time, however, another phenomenon is observed, which concerns the renting of modern properties and in places closer to the urban fabric. Especially in Elliniko, very high rental prices are recorded, comparable to more expensive areas. For example, based on data from Spitogatos (www.spitogatos.gr), modern properties (of the last 10 years) show this year asking rental prices of 16.7 euros/sq.m.. However, prices show a corrective trend, having fallen from 19.5 euros/sq.m. of 2019. But they are a practical proof of the investment activity of the last years. It is typical that a newly built property in Elliniko is rented 40% more or almost 5 euros/sq.m. more, compared to the average of all the houses in the same area. Accordingly, in Paleo Faliro, the discrepancy reaches 23% and in Glyfada 28.7%.
Thus, many foreign investors, among them several who took advantage of the “Golden Visa” residence permit program, proceeded to purchase houses around Ellinikos and in general in the southern suburbs, with the expectation of long-term exploitation and perhaps later sale, in order to capitalize the goodwill recorded in the interim period. Moreover, according to market experts, new construction yields are higher due to higher rents.
The deviations of the asking prices of modern houses are also significantly high, compared to the average of all the houses in the respective area. The biggest difference is found in Anavyssos, with 36.35%, or 800 euros/sq.m. more than the overall average. The average asking price for a modern property is 3,000 euros/sq.m., compared to 2,200 euros/sq.m. which is the average. Accordingly, in Glyfada a new property is sold for 30% more (1,344 euros/sq.m.!) than the average. In Voula, the discrepancy is even greater, reaching 35%, or 1,750 euros/sq.m. more than average.
The fact that Lamda Development’s investment in Elliniko is now in full swing is expected to strengthen the investment “flow” towards the southern suburbs and the Athenian Riviera. Also in focus will be four new residential projects, which will start to be implemented in the coming months, consisting of a total of 1,230 properties, with a gross sales area of 153,300 sq.m.
These are four new complexes, with the brands Neighborhood Retail, Mainstream Alimos, Mainstream Posidonos and High-Rise (50 meter tower). The tower will host 251 apartments, 432 apartments in Mainstream Alimos and Mainstream Posidonos and another 115 residences in Neighborhood Retail, while the average selling price will be around 7,630 euros/sq.m.
The creation of a housing complex is also progressing the investment scheme of the Hines companies (American real estate development group) and Henderson Park (investment group with an emphasis on the hospitality sector). The reason for it Project Voula, which is expected to begin construction within the next few weeks, envisioning the development of approximately 350 luxury residences. The amount of the investment is estimated to exceed 300 million euros.
