According to the Property Market Outlook report by the Greek-American Chamber of Commerce, there has been an increase in demand for high-quality residential properties. The markets for retail spaces and office buildings have seen price increases, while the supply of affordable housing continues to be a challenge. Government initiatives provide some relief, with the market benefiting further from political stability and sustained foreign investments.
Hotels Leading the Market
The hospitality sector, according to the survey, is ranked first in terms of performance for the second half of 2024, with an occupancy rate of 95%. This is followed by office spaces and residential properties. While residential properties are considered overpriced in many regions, they still show a performance rate of 75%. In contrast, industrial spaces have experienced a decline in performance. The primary drivers of growth include robust demand for housing, a rise in tourism, and a steady influx of foreign capital.
However, the increasing construction costs remain a significant challenge, as they are slowing down new developments. Additionally, geopolitical tensions, a slowdown in demand, and labor shortages continue to pose difficulties. Other challenges include the limited availability of bank credit and high borrowing costs, restrictions in the short-term rental market, disruptions in the global supply chain, and unfavorable urban planning decisions.
Over the next six months, the positive trend in the hotel sector, residential properties (both urban and holiday homes), and storage spaces is expected to persist. Conversely, industrial spaces are likely to show poor performance. This optimistic outlook is further supported by rising demand, continued growth in tourism, technological advancements, and a shortage of high-quality residential properties.
