10,800 new Lamda apartments pose big test for Greek market
Lamda Development will build 10,800 apartments at the Hellinikon complex, in what will be a major test for Greece's recovering residential housing market.
Strong demand from foreign buyers seeking to take advantage of low prices and Greece's Golden Visa program has driven up housing prices in the country but a sharp rise in supply levels could well dampen the positive momentum.
Experts warn that the property market is facing a key hurdle as banks and funds get ready to auction off 180,000 homes tied to unpaid loans in the next few years. The economy of Greece is recovering but at a moderate rate as the labour market remains very weak and household income levels low.
Lamda said in a prospectus on its upcoming 650 million euro rights issue that the apartments will be an average of 110 square meters and priced between 3,500 euros to 4,000 euros per square meter, except for those located right on the beach.
The company, controlled by the Latsis family, has been busy striking up deals to local real estate agents to sell the new apartments, while demand from abroad is expected to be strong,
In a time frame that stretches over 25 years, the Hellenikon urban complex also includes the construction of three hotels with a total of 1,000 rooms, two shopping malls, a museum, sports facilities, offices and a metropolitan park.