Not long ago, funds fought over a portfolio of four (4) RE assets by Alpha Bank. The price was over €90 m and the performance lower than the one of similar transactions. This is only one example of the aggressive strategy adopted especially by new companies that enter the local real estate market.
According to RE experts, the funds predict that Greece can present high performance of 7,3% – 7,5%, in the office RE market, the time between 2019 – 2023.
As mentioned at the 14th RED Business Forum, although European retail is expected to suffer from the slowdown in growth and tourism, Greece is forecast to increase store rentals this year and the next. Meanwhile, the growth rate of the Greek economy is estimated at 1.9%, with the corresponding figure for the European economy being set at 1%.
The local RE market experts pointed out that the development rates do not support such rental raise as the one expected by the funds. The expensive buyouts create expectations to the sellers and could delay the market development, they said.