ARiadni Real Estate Blog

Investment opportunities in real estate, but also

19 August, 2020

The economic crisis caused by the pandemic has made real estate prices attractive by favoring both buying and selling, placing large investors in the local market, and renting, offering opportunities to individuals, such as students and professionals, who in previous years were faced with " stingy "rents.

In some cases, the prices were prohibitive, changing the plans of students and entire families whose members are doctors, security personnel or professionals in areas with frequent transfers.

The above is pointed out, among others, in Fortune Greece by Ioannis Revythis, member of the Board of the Hellenic Realtors Federation (OMASE). "This year the situation will be a bit idiosyncratic in terms of rental housing due to the absence of foreigners who rented houses through websites, Airbnb etc ..", he states characteristically estimating that in both 2020 and 2021 there will be several houses in the Greek market for long-term leases, especially in the center of Athens but also in big cities. It is found that due to the pandemic many landlords move from short-term to long-term lease.

"There is great availability and reasonable prices", Mr. Revythis answers, noting that he does not foresee a price increase. On the contrary, it predicts a drop of 10-15% on average. He explains that in properties near Metro stations, Shopping Centers and Universities, a big drop is not expected, but the supply of real estate will be able to meet domestic demand as all the houses that were available for rent through platforms, in the context of short-term leases, no longer cover even 5% of this market.

Ioannis Revythis notes that the absence of foreign visitors, who are basically the clientele of this market, results in a reduction in short-term leases of this type by 90-95% in the period 2020-2021. A recovery should not be expected before the spring of 2021, which will depend on developments around the availability of a vaccine to deal with the pandemic.

Brokers see opportunities for both large investors and individuals. By the way, today it was announced the acquisition by the companies Henderson Park and Hines - which have already invested in the hotel market of Crete - a plot of 71,000 sq.m. in Attica, in the area of Voula, for the development of a residential complex.

It is noted that investors are placed in the midst of crisis taking advantage of opportunities while the situation favors individuals, especially in tourist islands but also in areas with universities, where in previous years prices were "close". Now students, doctors, security guards and other professionals, who often returned to their bases as they could not find real estate at reasonable prices, will have better opportunities. Real estate market players estimate that in 2020 and 2021 the situation will be completely different.

The measures for the pandemic

With regard to disagreements between the government and property owners over measures to deal with the effects of the pandemic, a convergence of views is sought to: on the one hand help shopkeepers who are unable to meet their obligations due to reduced turnover, and on the other hand the owners many of whom - almost 90%, according to the OME - are smallholders) have some tax breaks and not suffer further as they have already been forced by the government to reduce rents by 40%.

The owners consider that the arrangements so far are minimal while it is noted that the Panhellenic Federation of Property Owners (POMIDA), which had requested to be reimbursed through tax offsets 50% of the forced reduction of rent and professional housing that was legislated to deal with has persuaded the government to introduce and implement a 30% reimbursement procedure for the owners.

At the same time, of course, concerns are growing as Covid-19 cases increase, as additional restrictive measures in catering businesses bring pressure for a new extension of the forced rent reduction.

SOFIA EMMANUEL
                                                                                         

fortunegreece.com