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COLLIERS' 2013 OUTLOOK FOR GREEK REAL ESTATE MARKET
- Slow recovery and stabilization expected key trends for the upcoming year -
(Virtual Press Office) -- For three years now Greece has now been under the austerity restructuring program with financial support from the EU, ECB and IMF and will continue to be so in 2013. However, the reforms appear to have started to affect positively some macroeconomic indicators and building basis for real estate opportunities creation, according to Colliers International's research regarding 2013 predictions.
Ana Vukovic, Managing Director | Greece commented: "Following three years of austerity and economic descend, we expect 2013 to be a year where the first signs of stabilization and market mobilization will be evident. It won't be a year, where high volume of deals will be concluded, which will heavily depend on the market's reaction to the new tax framework concerning property ownership and income, but will mostly rely on the regeneration and restoration of the investment confidence in the Greek market. Activity from global investors is going to become more evident and mostly concentrate on hospitality product."
Elevated Investment Interest in 2013
More activity is expected from global investors in 2013 as the first signs of privatizations were evident in 2012, while the risk of existing Eurozone is diminished Although it is just the beginning, it is anticipated to speed up privatization projects and plans, sending a message for a business friendly framework that can upgrade the potential for economic recovery and growth. Priority is expected to be given to infrastructure road & rail networks, ports, marinas, tourism business, exporting companies, energy and logistics.
Industrial Opportunities Expected Despite Low Activity
Real estate industrial activity in the logistic market is estimated to remain limited due to limited bank financing and time needed for implementing competitive structures. However, increased yields combined with lowering of rental values should eventually raise opportunities and motivate the market while equilibriums are expected to prevail in the medium term.
Offices Slow Comeback
Colliers anticipates the office market to show signs of stabilization and recovery. Vacancy rates should remain stable for prime office locations as demand is concentrated in these areas. Prime rents should be stabilized not only due to the vacancy rates but also as a result of the limited development pipeline of prime office premises. In secondary sub-markets, rental rates are expected to depict a further drop, approximately 15.0% to 25.0%.
Shopping Centres and Retail Parks Continue as Key Interest
Demand is foreseen be mainly for large stores in central market locations. Shopping Centres and Retail Parks have become the preferred format of foreign retailers as well as local retailers and is expected to remain to be so.
Since the scenario of Greece exiting the Eurozone is excluded from the agenda following recent progress in negotiations between Euro Zone, IMF and Greece Colliers predict an acceleration of the economic restructuring and reforms. The new bailout package reduces dramatically the sovereign debt leading to a more secure period. Recapitalization of domestic banks, combined with higher absorption rates of credits from European funds is estimated to improve the country's competitiveness.
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About Colliers International
Colliers International is the third-largest commercial real estate services company in the world with 12,300 professionals operating out of more than 522 offices in 62 countries. A subsidiary of FirstService Corporation (NASDAQ: FSRV; TSX: FSV and FSV.PR.U), it focuses on accelerating success for its clients by seamlessly providing a full range of services to real estate users, owners and investors worldwide, including global corporate solutions, brokerage, property and asset management, hotel investment sales and consulting, valuation, consulting and appraisal services, mortgage banking and research. The latest annual survey by the Lipsey Company ranked Colliers International as the second most recognized commercial real estate firm in the world.
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Office Assistant CPMC
Tel: +30 210 68 32 440
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