LOOKING AHEAD-2018. Promising prospects across the board
The real estate industry showed signs of stabilization during 2017, with most of the sub-sectors ending the year with a positive sign. The prospects for 2018 are promising, backed by the positive performance of the economy, tourism and the overall favorable investment climate.
The commercial and the office sector maintained a steady course, albeit with a low volume of transactions. 2018 is expected to be a stronger year for both markets, due to the limited supply of class-A office spaces, the relocation of many companies, the interest of large commercial chains entering the Greek market and the very competitive prime yields compared to other European countries.
The logistics sector confirmed its increased dynamics and growth as there was a strong demand from retail, e-commerce and third party logistics (3PL's).
The residential market continued the price correction in 2017, even though at a declining pace, indicating a stabilization of the housing market that leaves a small margin of expected growth from 2018 onwards.
The holiday home market showed a very strong performance in 2017, recording a steadily upward volume of transaction as well as high rental return in key markets across the country.
The holiday home market is expected to continue growing rapidly over the coming years as rental yields continue their positive trend and asking prices remain stable, keeping Greek holiday home market’s investment prospects greater than its immediate competitors in the Mediterranean.
The residential market continued the price correction in 2017 even though at a declining pace, indicating a stabilization of the housing market that leaves a small margin of expected growth from 2018 onwards.
The hospitality sector kept a steady upwards pace recording positive trend in all key performance indicators in 2017. The outperformance of tourism was a decisive factor for the industry’s further development, attracting the interest of investors and hotel management companies.
A number of existing hotels changed hands and reopened or underwent renovations in 2017 which, along with the ongoing developments that began over the last few years, paved the way for a new era of growth for the hospitality sector in Greece. Foreign investors, developers, and international hotel operators are reportedly planning to enter the Greek hospitality market, specifically in well-known tourist destinations as well as in Athens.