Dimand's plans for affordable housing
Real estate assets demand remains strong relative to supply.
Dimand reaffirms interest in the center of Athens noting that market values have been inflated in Southern suburbs.
As the CEO of the company, Dimitris Andriopoulos, said during the General Assembly, "the pandemic has generated new needs and a new product, it has brought the so-called digital nomads and that is why the housing sector has gained strong momentum while there is also observed lack of available assets".
According to Mr. Andriopoulos, the company will deliver approximately 300 affordable housing apartments in the Minion development as well as in other properties such as the old Emporiki Bank on Sofokleous and Aiolou Streets in Athens but also in Piraeus and Thessaloniki.
Among other things, according to Mr. Andriopoulos, Dimand continues to overweight to urban redevelopments.
As he said, the contract was signed with TEE for the exploitation of the property in Dachtylidi (a part of which about 3,500 square meters will be given as consideration to TEE) where a "green" building of 10,000 square meters will be developed. in collaboration with GEK TERNA and Athens Medical, which is already pre-leased.
The Dimand contract for the development of the new courthouse in Piraeus is also up for ratification at the audit conference.
Finally, with regard to Skyline, the real estate package that will be exploited by the Alpha Bank – Dimand – Premia joint venture, "real estate pre-sales are promising and cost-effective, in the next two months the real estate transfers from Alpha Bank to the new company will begin and are completed next year." The entry of the EBRD into the investor's equity structure (Demand – Premia) is considered certain with a percentage of 15%.
The head of Dimand said that the demand for real estate is still greater than the supply, so the lack of capacity will be an increasing problem in the coming years. "For this reason, in the next three years we have made forecasts and moves for long-term collaborations with construction companies in order to ensure fair prices. Construction costs in Greece continue to grow exceptionally at a rate of 15% to 17%.
Finally, regarding the rise in rents, he said that they seem to be stabilizing.