5 new trends in residential construction in Greece - What types of real estate are being invested in.

The adaptation of sustainable practices in the construction of residential buildings, according to similar assessments, is a key criterion for investments in the construction industry, as it is equally important for the value of housing as its location.

Given the ongoing dynamics of the construction industry in Greece in 2023, which is reflected in the development of various indicators of economic conditions, such as industry output, investments, and private construction activity.

What changes are occurring in the adoption of sustainable practices in the construction industry, particularly in residential real estate?

The EU recently announced the need for reconstruction aimed at the energy renovation of buildings from 2028 to 2032, which creates new obligations for owners who want to sell or rent out their property, and which will be finally enshrined in Greek legislation upon the implementation of the directive. The "Energy" directive is particularly significant, especially in countries like Greece, where a substantial portion of old housing was built before 1980.

What is changing for potential buyers and sellers of residential real estate based on new data compared to a decade ago?

The construction changes that have occurred in building specifications since 2020 compared to previous years are chaotic, says Joseph Arambatjis, CEO and owner of the construction company EPICYCLOS. Changes have been seen at all levels, from the use of waterproof concrete to building envelopes and engineering systems. Additionally, due to a labor shortage, an increase in real estate prices is expected in the coming years. Ultimately, this means that modern properties in Greece still have much lower prices compared to other European countries.

Another significant difference we've noticed compared to a decade ago is the value now placed on architecture, whether it's the renovation or construction of an apartment building, which was previously very low or nonexistent. The role of the architect today is crucial, even when renovating individual rooms like the kitchen or bathroom of a property. As a construction company, since 2009 we have been investing in architecture, both through internal research and external collaboration with major architectural firms, he says.

New trends in construction today in Greece. This new data is changing not only the supply and demand for residential real estate but also radically transforming the construction industry and the real estate market. They are affecting not only the construction of new residential buildings but also the existing vast stock of housing in our country.

In particular, the trends that are being shaped according to Mr.

• The market landscape is changing almost every six months. In the last 2-3 half-years, there has been a trend where Greek families, aiming to acquire a new modern home, are lowering their expectations. High interest rates and economic constraints are leading to a preference for smaller apartments. Additionally, the fact that many Greeks prefer not to start large families has resulted in a high demand for one-bedroom apartments ranging from 50 to 60 square meters, which have always been a reliable investment opportunity with good returns.
• There has been a stable increase in demand for luxury real estate in recent years, which currently has a significant audience in Greece. Many Greeks, as well as buyers from the Middle East, Europe, America, and China, are choosing to invest in this category, mainly due to our geographical location and the attractive property prices.
• Large investments in commercial real estate are currently being made in Greece. As a result, there is a trend of creating small residential communities around major commercial buildings, even in a small market like Greece. Areas such as Marousi are creating new conditions with thousands of new jobs, where employees choose to live in close proximity to their workplace to enhance their daily lives and quality of life. Within this context, the next project at EPICYCLOS is the construction of modern and flexible residential buildings on an excellent plot in a strategic location in Marousi, which is currently in the architectural design phase.
• Large urban reconstructions, including Helliniko, as well as numerous major hotels being built across Greece, will definitely shape the development of the construction and real estate sectors.
• There will be a huge demand for skilled labor, which will drive up construction costs and, consequently, real estate prices, which will continue to rise for at least the next 5 years. He cites the example of a large hotel complex being built on Paros, where the main challenge is smartly managing investor demand while keeping construction costs low, so that the project is executed in the best possible way and remains a serious investment for the owners.

Source: APE-MPE.