Certain assets classes in the real estate sector in Greece are exposed to a sustained long-term commercial impact as a result of the pandemic crisis and the anticipated operational social distancing protocols that are implemented.
In general, the impacts can differ, and consistency and spacious prime assets with accredited wellness requirements and digitally enhanced connectivity networks are likely to be most resilient. Prime logistics and critical goods retail units can emerge stronger.
Quality housing may have structural tailwinds, but there are possible consequences for architecture, density, location and quality of life.
Moreover, in the short term, hotel and leisure properties are undoubtedly affected by the forced containment of non-essential travelling.
In addition, some hospitality assets will also need to change their business models and spaces in the longer term, as well as non-food retail and F&B spaces will need to be adapted.
Based upon the above consolidation and restructuring in the sector is expected. The sectors of the market that are more at risk than the others are :
The Best-Insulated Sectors are:
Prices remain competitive and also the market is now experiencing crisis management.
After years of stagnation or low growth, it's necessary to plan brand new developments and implement existing commercial projects that meet the present and long-standing needs of the real estate market.
The big bet is to still draw international institutional investors and foreign buyers either through the acquisition of NPLs or through opportunities within the hospitality, holiday and "Golden Visa" sectors.
Autor: Yacine Bougrassa, CEO, BKMS Family Office