Investments in the Greek market hit a new record high in 2023 commercial real estate (offices, shops, hotels and logistics), as, according to estimates by the Proprius company, they exceeded 2 billion euros, marking an increase of 22% compared to 2022. This is a particularly positive development, which is almost exclusively due to domestic investors, who proved to be particularly mobile.
The most popular category was the office buildingsa sector where a total of 780 million euros were invested, followed by hotel/tourist properties, which attracted investments of 500 million euros. An additional 425 million euros were placed in commercial shops and real estate, and another 300 million euros in industrial real estate/logistics.
“During 2023 we saw large-scale transactions being completed, such as Alpha Bank’s Project Skyline, Intrum’s Project Tethys, as well as other important moves, such as e.g. the acquisition by the National Bank group of a series of properties”, says Ms. Niki Sympourahead of Proprius, a real estate consulting company, which represents Cushman & Wakefield in the Greek market.
The Project Skyline concerned the transfer of a portfolio of 573 group properties Alpha Bank, worth 440 million euros. Buyers of the new company created for the exploitation of these properties were 65% of the figure Demand Real Estate, Premium Properties and her EBRDwhile the remaining 35% is still controlled by Alpha Bank itself.
High mobility in offices, as there is a significant shortage of new and green buildings.
Accordingly, the Project Tethys involved the sale of a portfolio of 72 of its hotel properties Intrum Hellas, which were acquired by SMERemediumCap scheme, Latonia Enterprises – Athanasios Laskaridis family office and WHG Europe Limited – Brown Hotels. It is an alliance between her family office Laskaridis familyMr. Nikos Karamouzis as head of SMERemediumCap and the Brown Hotel Group. The amount of the transaction is estimated to have exceeded 250 million euros. Another important move in the market concerned her sale of the Smart Park commercial park, from REDS of the Ellactor group to Trade Estates AEEAP of the Fourlis group. The value of this sale amounted to 115 million euros.
Her group proved to be particularly dynamic National Bankwhich proceeded to invest 300 million euros for the repurchase of dozens of properties, which it had transferred several years ago to Prodea Investments (then National Pangea AEEAP). The two largest properties purchased by the National Bank are its historic building Athens Stock Exchangeat 10 Sophokleous Street, which was sold by Papaleka group, who in turn had bought it at the end of 2020 from Prodea Investments. The value of this transaction is estimated to have approached 67 million euros.
At the same time, Ethniki is currently completing the repurchase of a total of 43 of its properties, for a total price of 237.2 million euros. The largest of these, amounting to 83.2 million euros, concerns the Information Center of the group in Gerakas.
According to Proprius’s analysis, the amount of investments made last year is a particularly positive event, amid the negative climate in most European markets, due to expensive borrowing, high inflation and the two wars that continue to rage in Europe and Middle East. This, after all, is the main reason why foreign investors are mostly absent from the transactions that took place.
According to Mrs. Sympoura, “as far as the course of investments in 2024 is concerned, I estimate that they will fluctuate at a similar level to last year, perhaps even a little higher, with even more and larger investment agreements. The return of foreign investors is also expected. The recent securing of the investment grade by the Greek economy will also contribute to this”.
Regarding the real estate categories that will have the greatest demand, Ms. Sympoura estimates that offices will continue to be “the apple of the bunch”, as there is a significant deficit of new and green buildings compared to demand. That is, it is the real estate category that offers the greatest opportunities.
