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It is characteristic that according to your data Bank of Greece, It was observed 4.2% increase in property prices in 2020, after an increase of 7.9% registered in 2019.
The price increase in the fourth quarter of 2020 compared to the corresponding quarter of 2019 was 2% for “new” apartments, up to 5 years old, and 3% for “old” apartments, more than 5 years old.
For 2020, the average annual growth rate for prices for “new” apartments was 4.7%, while the average annual growth rate for “old” apartments was 3.9% in 2020.
But what are the trends in your individual branches? Real-estate market; In large investment properties but also in urban properties that interest thousands of citizens?
Increase in the stock of real estate in affected sectors
During the ten-year economic crisis, as noted in ΑΠΕ – ΜΠΕ, ο George I. Kormas, CEO of Piraeus Real Estate, Director of Group Real Estate and Senior General Manager of Piraeus Bank, the real estate market suffered a sharp decline, mainly due to the reduction in transactions, price drops of up to 40%, as well as the absence of new developments.
However, I will express a “heretical” and optimistic view that the economic crisis has contributed in part to the rational development of the Greek real estate sector. This was achieved by creating a large stock of properties for sale, mainly to companies that will use them to meet their commercial objectives, but also to maintain prices at very competitive levels in relation to neighboring Mediterranean countries.
«The effects of the pandemic on the economy It is expected to generate a new increase in the stock of real estate from sectors that were significantly affected such as tourism, restaurants and retail. The real estate market the next day will continue its upward trend until March 2020, picking up the thread from where it left off. “Along with tourism, the real estate market will bring impressive financial results, both for homeowners who will see the value of their property increase, and for the country as a whole,” said the Piraeus Bank group executive, based on available data. . .
Small storage spaces on demand – Bioclimatic buildings
When asked which specific subsectors of real estate development have the greatest growth prospects, Mr. Kormas states that the pandemic will bring with it major reorganizations on the importance of the real estate sectors.
“Warehouses are a category of real estate that is benefiting significantly from the pandemic due to the significant increase in electronic commerce, the new element being the increase in demand for small stores, in or near large cities that will solve the problem called last mile, that is, the shipment of products from the distribution center to the end user. “We will also see an increase in demand for bioclimatic buildings, mainly offices with integrated ventilation systems, on main roads with good access and larger homes with areas available for teleworking.”
Answering the question of what will be the characteristics of the properties that will be in demand, George Kormas points out that “the stock of buildings in Greece for the most part is more than 30 years old, is built to outdated building standards and does not comply with the new requirements for an urban development that respects the environment, with a low energy footprint. ”“ The pandemic gave an image of the future to use, and therefore to the demand for urban real estate. telecommuting, which will remain for many reasons and the next day, at least in the logic of a hybrid work model, showed the need for larger residential properties where it is possible to isolate between different members of the household. It also demonstrated that it is possible to live outside of big cities by enjoying larger, cheaper and closer to nature residential properties and at the same time providing its services productively, says Mr. Kormas, noting that Piraeus Real Estate through From its experience and continuous data collection and processing, it is able to provide a competitive product across the entire range of real estate.
The cooperation of all parties in the buying and selling process is essential: “spring” phenomenon
THE Alexandros Demertzis, Real estate consultant specializing in real estate in premium areas of Athens and suburbs notes that in recent months there has been a particularly high demand for valuable urban real estate in areas such as the downtown area around the Presidential Palace, as well as in the suburbs such as Filothei, Psychiko Kefalari, etc. Demand for investment purposes began shortly after the start of the pandemic, as there was a possibility that prices would fall and in recent months the prices of properties in many premium areas of the geographical area have peaked. broader capital have skyrocketed. The demand is seen mainly by high-income Greeks and by manufacturers who after years have appeared in a very dynamic way, while foreign stakeholders who demonstrated and made purchases before the pandemic are on hold as they cannot follow the levels of sale prices. Alexandros Demertzis also estimates that there will be intense mobility of urban real estate in the areas where the renovations will begin, such as the Elliniko area, by both Greek and foreign actors.
Waiting stop by strangers
Mr. Demertzis attributes the waiting attitude of foreigners to the fact that, especially in the smaller properties that aimed at visa buyers, can not travel, especially the Chinese who accounted for a large market share.
Some, but few in number continue markets with virtual visualization but certainly in this market it is expected to be present “spring” effect when air travel starts at a normal pace and not with the current strict restrictions. There is also a large increase in demand in the market for seaside homes of all categories on islands in particular, as after the experience of the pandemic many seek safer vacations in their own homes. And here the phenomenon of “spring” will work for the same reason as the return to normality in air travel.
In general, it indicates that there is an increase in the sale prices of real estate. As exarchia characteristically says, Kolonaki and Omonia tend to purchase Exarchia prices before the pandemic. The question and the question is whether these prices established by the sellers will be able to be achieved and for how long the potential buyers. He points out that in about a semester to a year from today, trends will have taken a clear path.
Mr. Demertzis also emphasizes the cooperation that all parties must have in the process of buying and selling a property for it to be completed successfully. Prospective buyers and sellers should seek the advice of professional real estate consultants to maintain reasonable price levels and not allow for exaggerations that are not in the interest of either party.
Purchase and sale agreements are implemented – Recovery differentiation based on ownership
For his part Konstantinos Georgiakos, CEO of Intrum REO points out that the first indications in the real estate market show that interest is maintained with the important sale agreements that have been launched, to be implemented keeping the focus on special types of properties and in specific areas, especially in urban centers.
Referring to individual sectors of real estate development, Mr. Georgiakos notes that “the effects of the pandemic throughout the real estate market are not uniform and recovery rates will vary depending on the type, location and characteristics of properties.” “We note that although the pandemic has shown that many can work from anywhere, both individuals and businesses want to be close to basic infrastructure, social activities, and easy access to health care. The focus is therefore on in modern level houses in the suburbs of the big cities, Athens and Thessaloniki, which are less populated and have a higher proportion of common areas and vegetation per inhabitant ”.
“There is still great interest in smaller logistics buildings in the vicinity of cities to meet immediate distribution needs (last mile). The future of quality logistics, which combines good location, accessibility and size characteristics, is defines positively on the visible horizon with AEEAP, which has already made significant investments. Currently, the annual returns of the main logistics are close to 8.5%. In this context, we believe that the increase in demand combined with supply Limited modern storage space will accelerate further increases in your prices.
According to Mr. Georgiakos, realizing the market challenges, Intrum Hellas created Intrum REO Solutions, the first real estate management company to invest in software systems, digital marketing and skilled human resources, having secured the group’s full support in resources. and know-how, to offer solutions through a high standards single window.
