Few choices for good retail property harms prospects
The outlook on Greece's retail property is positive but a lack of development activity due to the country's eight year crisis has brought down supply levels, said Cushman and Wakefield Proprius in a report.
Rising tourism and private consumption is seen helping boost the economy and shine to commercial assets but there are slim pickings for investors looking for a prime asset in the retail sector in the country's large cities.
"With lack of development activity, the overall vacancy rate in dominant shopping centres and prime high streets is expected to remain low. The lack of prime supply might limit the activity of potential investors despite the positive outlook," said the report titled Q1 Retail market snapshot.
Investment activity in the first three months of the year was weak, said the report after a busy fourth quarter when investments hit 38 million euros. In the first quarter, NBG Pangaea Reic acquired a standalone commercial building along 66 Ermou street for 5.7 million euros and one in Kolonaki of 1,086 square meters for 3.75 million euros. Trastor also acquired a store in Ermou street for 2.5 million euros.
"Investor demand is focused on well-positioned high street stores and supermarkets," added the report.