The New Hellinikon Project: Your next Investment opportunity

Helliniko will be undergoing a radical transformation with vast expenditure that will place it high on the investment ‘agenda’. Through this project, the entire national economy is expected to experience a boost with the development of a major tourist attraction. But that’s not all! Future investments in both culture and entrepreneurship will, initially, lead to the creation of partnerships between individuals and companies and ultimately attract international capital.

The investments at Hellinikon will be just as much concerned with culture as they will with entrepreneurship.

The emphasis will be on the creation of a Metropolitan Park which on completion will be considered as one of the largest coastal parks in the world consisting of seven different recreational areas. The project will be extended to the coast where the beaches will be upgraded and cover 3.5 km of premium coastline. In addition, casinos, recreation areas and 2 large shopping malls are to be built. New sports and educational facilities, health and cultural centres, museums and sophisticated hotel units with landmark architecture will also be included in the planning of the works. The total area of the Hellinikon project will cover 6,2km² with ease of access facilitated by a large network of sidewalks and cycle lanes.

Promoting the area’s history is also one of the aims of this project, as many of the buildings within the perimeter have been classed as ‘listed’. These will be restored and take on a new form. An example of this is the aircraft hangar of the former airport which will be converted into an aviation museum. Furthermore, preservation of the environment and national cultural heritage is one of the main aims of this project and accordingly 600,000 m² will be designated to green areas with parkland while all the archaeological sites will be highlighted.

The Metropolitan Park will be one of the largest coastal parks in the world, consisting of seven recreational areas.

There is no doubt that the strengthening of the nation’s economy will be a natural consequence of this major investment project. But what exactly will these benefits be? According to the official statements from Lamda Development, the company that has undertaken the implementation of the Hellinikon project, it is expected that about 10,000 new jobs will be created during the construction period alone. Subsequently, and by the end of its completion, these new positions will have exceeded 75,000. The announcement goes on to predict that the number of tourists visiting Athens will increase by one million compared to the current number of tourist arrivals. For a country like Greece which bases a significant proportion of its economy on tourism, this will be a major boost.

An overall increase in the country’s productivity is estimated. According to the relevant studies of Lamda Development, the forecast is that Greece’s GDP will have increased by 2.4% by the completion stage of the project. This figure has been calculated in accordance with the total investment cost which amounts to 8 billion euros. However, the expectations of the revenue that the project will bestow on the Greek state far exceed the costs. It is estimated to reach in excess of 14 billion euros . The news is also positive for the private sector, as real estate and local companies are greatly expected to increase their revenue as a consequence of the construction projects.

Greece’s GDP will have increased by 2.4% by the final stages of construction, through the creation of as many as 75,000 new jobs in the long run, while the number of tourists will increase significantly.

But how will real estate benefit from this project? The answer can be found both by the response from project managers and extensive research that has been conducted.

The CEO of Lamda Development, Odysseas Athanasiou, maintains it is “purely a business venture”. The company intends to spend 2 billion euros on the construction of 10,800 apartments with an average size of 110 m² each, two skyscrapers, offices and three luxury hotels. The amount collected by the company for the financing of the investment reaches 650 million euros, as Mr. Athanassiou pointed out. According to the business plan of Lamda Development, the company is expected to secure an additional 400 million euros from the sale of real estate, the construction of retail stores and the rentals from sports facilities. A further € 800,000 will be secured from bank loans.

Overall, he stressed that the results of the company’s studies indicate that 58% of the profits will come from the sale of apartments which are estimated to be sold for €3.5-4,000 per m². Furthermore, the percentage of profit to be earned from other properties is estimated to amount to 28% while the 2 major shopping centres will increase the total profit by 8%.

58% of the profits from the investment in “Project Helliniko” are expected from the sale of apartments, while from other properties the profits will amount to 28%.

The Institute of Economic and Industrial Research (IOBE) conducted a study based on investments in the area and concluded that there will be a significant increase in construction and production activity as a direct consequence of the project. This regeneration will, in turn, strengthen the economy and significantly stimulate an injection of private capital with intense foreign interest in buying real estate in the area and which is projected to surpass 10,000 properties all offering “golden” opportunities to international investors. Therefore, one can appreciate that the value of the development and construction is significant as it corresponds to the studies which have shown that the interest will be equally great.

Studies by the IOBE have concluded that the Hellinikon project will attract foreign real estate investors to the area.

Furthermore, NBG Pangea, one of the leading real estate investment companies in Greece has also conducted some interesting research which claims that due to the investments at Hellinikon, there will be an increasing supply of real estate in the market for at least the next five years. With the increase in demand from purchasers and rentals, prices will rise not just in the surrounding suburbs but also in the centre of Athens with an annual growth rate expected to reach as high as 5%. Yields are estimated to be more than 15% higher than those found in other European capital cities. This explains why Greek real estate will very soon be back on the radar of foreign investors.

Athenian Real Estate, therefore, is about to make a comeback, and will also make the future prospects of real estate throughout Greece, more than optimistic. The analysts at Algean Property, a real estate servicing company are in agreement. In their related study, they talk about the revival of the so-called “Athenian Riviera”, the coastline along the southern suburbs of Athens. Specifically, they report that “as Athens has become a popular tourist and investment destination, global companies are currently investing in large hospitality projects and residential complexes along the seafront. Of course, this has resulted in an increase in the total value of all properties in the southern suburbs, with the most concentrated investment being made in Helliniko. For some properties, in fact, it is estimated that their value will exceed € 6,500 per m².

However, their most interesting findings in their current study is the connection between investments in the area around Hellinikon with the new trend of working remotely. This new opportunity has allowed professionals to combine their home and work space with the stunning landscape and beauty of the area and which offers them the chance to take part in numerous outdoor activities away from the hustle and bustle of the city centre. This has greatly strengthened the demand for buying and selling not only in Helliniko, but in all the southern suburbs which line the coast. Now, the search and purchase for the ideal property does not necessarily need to take into account the requirements of easy access to work.

In view of the above, it seems that the development project at Hellinikon has sown the seeds for an optimistic future with brighter and more favourable prospects for investors both within the southern suburbs and the surrounding areas. Research studies have shown that the real estate market will be affected both directly, through the construction of new properties and indirectly through the attraction of funds for new investments. The new Hellinikon project will not only impact the surrounding area but will also leave its mark further afield, both in Athens and throughout Greece.

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