The Real Estate Sector in Greece



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 :

  • Full-service hotels dependent on conferences/business travelling
  • Offices with dense spaces and lack of health & wellness specifications
  • Seasonal hotels dependent on foreign tourism and Tour Operators
  • Serviced corporate apartments dependent on short-term stays with limited services
  • Tourism-oriented retail, especially luxury merchandise
  • Shopping centres with dense F&B facilities
  • Mixed-use retail, F&B and leisure spaces in dense and urban locations
  • Co-working office spaces focusing on density rather on services
  • Airport linked retail spaces except warehouses

The Best-Insulated Sectors are:

  • Modern logistics warehouses, especially with cold storage for food
  • Last-mile distribution centres serving e-commerce retailers
  • Medical & life sciences offices leased to private/non-governmental providers
  • Quality long term rental residential with adequate home working spaces
  • Essential goods retail, especially for click & collect with home delivery
  • Flexible self-storage due to historically durable demand through recessions
  • Spacious residential with wellness & energy efficiency specifications
  • Data centres operated by third party service providers

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

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