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Investments of over € 5 billion scheduled for Greek real estate and hotels

Investments of over € 5 billion scheduled for Greek real estate and hotels

Many funds and strong “players” in global real estate and tourism markets expecting new investments in Greece, given that most of the foreign investors gain confidence on Greek economy and its growth prospects. A large number of company reports describe a really attractive investment environment in Greece anticipating that there are discussions for important deals on property and hotel industry, of value higher than € 5 billion.

According to a Wall Street Journal article, investments in 5-star hotel units will take place in Greece and their total value is going to exceed € 4 billion. Foreign investors base their assessments on the event that many Hollywood stars choose Greece as a holiday destination and on the Greek tourism success story in general.

A bright example, according to the WSJ article, is the Nikki Beach Resort and Spa, situated in Porto Cheli (Peloponnese). This resort was fully booked until the end of the summer, while the average price for a room was 320€ and 850€ for a suite.

Dolphin Capital, on of the biggest real estate investement groups, has already invested €400 million in new property developments and plans to invest about €1 billion in the next 8 years. Other groups intending to invest in Greek real estate market are Hilton Worldwide Holdings Inc, Four Seasons, Rotana (Abu Dhabi) and Nikki Beach Hotels and Resorts.

It should also be mentioned that the domestic real estate is of high interest. More specifically, property transactions amounted to €1.2 billion in the last 1.5 year, while the deals’ value was only €0.9 billion in period 2008-2012. Key sellers, according to Dow Jones Newswire, are Greek banks and Hellenic Republic Asset Development Fund (TAIPED), while the urban renewal of Elliniko region seems to be the biggest opportunity in Greece.

To sum up, the investment climate in Greece has improved considerably in recent months, since the expected investment are estimated at €700 million by the end of 2014. Nevertheless, the procedures regarding a property acquisition remain quite confusing. Consequently, obtaining professional services by experienced real estate agents and tax consultants is absolutely necessary.