The prices of houses in the southern suburbs have been increasing lately. As a result, Lamda is expecting to earn more revenue from the sale of the 1,230 homes it plans to build by the end of the first phase. These homes will go on the market for sale in the middle of 2023, with an average price of 7,600/sqm. This is higher than the initial estimate of 6,600/sqm.
An analysis by the international consulting company, Savills, unveils that prices for prime residences in the region are increasing rapidly.
The current price in Athens is €11,200/sq.m. Despite the rise in luxury home prices in recent years, the Athens market remains competitive. According to the Savills Prime Residential Index Report (Feb 2021), Athens ranks 19th out of 23 cities.
The company expects to collect a total of €2.289 billion from the sales of 1544 houses in the first phase.
The average sale price for each house is €9,400. The average construction cost per square meter for the different housing complexes is €4,500. The gross profit margin for housing sales in 2023 is set at 38%.
If the above forecast is realized, Lamda Development can reduce its borrowing needs, confirming the assessment of the Managing Director, Mr. Athanassios, who believes that "the entire project will eventually be able to finance itself".
The second phase (2027-2037) will create 6,500 houses, estimated to generate €9 billion.
