Market Evolution 1996-2006

All sectors of the Greek property market have experienced good capital and rental growth since 1996. A growing economy, increased business activity, rising consumer spending and lowering interest rates have lead to strong demand for business, retail and residential property.

In Athens, improved infrastructure (new National and urban motorways, new metro, new Attica motorway), which was partly developed due to the 2004 Athens Olympics, has opened up new areas for development.

The solid growth of the market has lead to strong confidence in property investment from all types of investors. The availability of finance for the acquisition for commercial and residential property has had a major impact on the markets over this period.

Increasing property prices has lead to increasing urban land prices and competition between developers for sites. Despite capital increases investors are mostly not seeking to dispose of properties, but firmly believe in further capital appreciation.

Source: Lambert Smith Hampton