At the panel discussion on “Property Investing in Greece” during the 6th Institutional Asset Management Conference organized by the Hellenic Association of Institutional Investors (HEII), moderated by Mr. Aristotelis Karytinos, CEO of Prodea Investments and Vice Chairman of the HEII Board, it was emphasized that in the future, Real Estate Investment Companies (REICs) must be strengthened with new products and the participation of domestic institutional investors must be broadened.
Panelists agreed that companies should focus on developing specialized asset classes such as student housing, logistics and warehouse facilities, and commercial properties. This is expected to be achieved through redevelopment projects as well as upgrading existing infrastructure—a trend that has primarily emerged in recent years in city centers such as Athens and Thessaloniki.
Mr. Ioannis Ganos, CEO of Alpha Urban Properties, remarked that following the decade-long crisis, real estate is making a strong comeback and is no longer regarded as a “taboo” topic. The company is now targeting core assets, positioning itself in the office sector, which, according to him, is currently undersupplied, as well as in retail and logistics assets. Regarding the Greek economy, Mr. Ganos highlighted that “Greece’s macroeconomic stability creates opportunities to attract foreign investors, but active participation from domestic institutional investors, such as pension funds, is also required.” He added, “We must be able to offer foreign investors new products, such as REICs.”
Diversification is Key
On the other hand, Mr. Kostas Markazos, CEO of PREMIA REIC, stressed that the “key” for the real estate sector going forward is the diversification of REICs’ portfolios. According to him, Premia operates in multiple sectors, with an emphasis on tourism, logistics, student housing, as well as innovative investments such as the emerging wine industry. Regarding challenges faced by the sector, Mr. Markazos noted that “although the institutional framework for REICs has improved, the tax regime has recently deteriorated, which negatively impacts investment prospects.” He expressed hope that “this will improve in the future.”
Mr. Dimitris Papoulis, CEO of Trade Estates REIC and Chairman of the Investment Committee, discussed the sectors in which his company specializes and leads, such as shopping centers and logistics. According to him, Trade Estates anticipates strong market growth and aims for investments exceeding €1 billion by 2031, seeing good return potential for long-term investors.
Ms. Despina Chamilaki, Managing Partner of Grivalia, noted that “most banks now share the same approach and seek assets that make sense for us. Our investment portfolio currently stands at €1.5 billion.” She mentioned plans for offices with long-term leases and rents at reasonable levels. The existing portfolio also requires redevelopment, with an investment of around €100 million planned. The portfolio yield is slightly above 7%. Ms. Chamilaki expressed a somewhat pessimistic outlook regarding investor activity, stating, “I saw more momentum in 2016 compared to now. The only assets that really interest investors are shopping centers, as well as residential and student housing.”
Finally, Mr. Georgios Elekidis, Managing Director of Bain Capital, observed that Greece benefits from a positive macroeconomic environment but lags in market size. The company identifies opportunities in loans and real estate, with a focus on converting properties into core assets. However, he expressed concern over regulatory instability, such as frequent changes in the Insolvency Code (NOK), which discourage predictable investments.
