Strategic investments in urban real estate: The smart choice
Investment choices vary and an investment decision may eventually turn out to be particularly complex. Today's financial environment is extremely volatile, as market behaviour is affected by consecutive social, environmental, technological and cultural changes. The digital revolution and artificial intelligence, climate change and the transition to renewable energy sources, the population crisis and geopolitical conditions greatly affect the world of investments.
In this dynamic environment, the real estate market is a popular investment choice, which offers opportunities to create wealth and diversify business activities. In particular, investments in large urban properties have a strategic aspect, as they contribute to the sustainability of national and local economies, and to social equality.
High returns and ESG value
The return on a real estate investment primarily depends on the property location. In high-demand areas such as great urban centres, the value of a building may go way up. Factoring in the fact that investors enjoy protection against inflation, as rent income is in line with increases in inflation, such an investment becomes even more attractive.
The return also depends on the age of the property, its architecture and its sustainability – i.e. whether it follows the current trend of green buildings. Therefore, investing in large urban properties is a smart choice, as these buildings meet the highest specifications in terms of construction, aesthetics and sustainability.
In addition to positive return expectations, strategic investments in urban real estate development have a strong social impact and high ESG (Environmental, Social and Governance) value, as they:
- Improve life in the city – By redesigning public spaces, providing better housing and entertainment options, and redeveloping degraded areas.
- Create new jobs and boost local businesses – Focusing on construction, tourism and the food industry.
- Enhance environmental protection – By reducing carbon emissions, increasing green spaces and using renewable energy sources.
Positive investment sentiment in Greece
Over the last years, the Greek economy has been on a recovery track after a long economic crisis. The growth rate in the construction sector is remarkably high again, despite inflationary pressures raising the cost of materials. Foreign strategic investors see Greece as an attractive destination offering emerging opportunities to raise the value of their investment capital. At the same time, the Golden Visa programme is greatly boosting interest for investments in luxurious urban real estate across the country.
Apart from this favourable economic juncture, Greece’s natural beauty, warm climate and particular historic identity attract all investor profiles, such as businesses or digital nomads. According to Bank of Greece data, between 2019 and 2023 net foreign investment in Greek real estate showed a remarkable increase of + €7.6 billion compared to the previous decade.
As far as property features are concerned, buyers increasingly turn to buildings that combine high energy efficiency, modern design and aesthetics. They show particular interest in tourist areas, as well as in big cities with infrastructure and rich cultural heritage, the first choice being Athens.
Attica: Focusing on the Athens Riviera
Right now, the prefecture of Attica is the main area of interest for investments in Greece. Apart from the metropolitan centre of Athens, investor attention is focused on the Athens Riviera. This is the coastal zone along the southern suburbs of Athens on the Saronic Gulf, from Piraeus to Sounio, covering a distance of 70 km.
The Athens Riviera is one of the most impressive coasts in the Mediterranean, with dozens of organised and free beaches, crystal clear waters and scenic landscapes. In about 30 minutes from the centre of Athens and only 40 minutes from the airport, people can relax and enjoy sports, go shopping and spend time in the famous clubs on the beach front. One of the advantages of the area is the constant upgrading of infrastructure through major urban regeneration projects, such as The Ellinikon.
No wonder the demand for real estate in the area has increased spectacularly over the last years. For example, prices on the beach front increased on an annual basis by 7.5% in 2023 and by 7.9% in 2024. By all indications, investment prospects are particularly promising both in the short and in the long run.
The Ellinikon: European first in real estate investments
The investment of The Ellinikon in the area of the old airport in Athens offers a new way of life, combining innovation, sustainability and aesthetics. In a place of great natural beauty with a total surface area of 6.2 million m2, a 15-minute city is going to house green residential buildings, one of the largest coastal parks in the world, restaurants, clubs, offices and infrastructure buildings.
LAMDA Development’s mission is to have a positive impact on society. With The Ellinikon, we are improving the urban landscape and contributing to the well-being of the people. By the time the project will be completed, we expect to have created more than 85,000 new jobs in Greece. The value and degree of acceptance of the project is also evident from the fact that at end-2024 91% of residential buildings were already covered by sale or rental agreements.
The Ellinikon currently is the largest strategic investment in real estate in Europe. With this new city within a city, we aim to put Greece on the global real estate investment map.