The price of this market report covers 4 quarterly reports on this sector. This quarterly report will be downloadable instantly as a PDF document, with the 3 remaining reports delivered at regular intervals throughout the year.
The Greek government has overcome a number of key obstacles in recent weeks that have averted a potentially disastrous and disorderly default. Despite pulling back from the brink, enormous political risks remain, not least an upcoming parliamentary election in April in which no political party appears to have support for an overall majority. Over the longer term, in addition to the impact of further austerity, Greece could also have little influence inside the EU and will remain a de facto economic protectorate for years to come.
While we expect the pace of contraction to ease in 2012, we stress that a return to sustainable growth is predicated not just on successful economic reforms but also on targeting policies at future growth industries and restoring confidence. The short term outlook for the real estate sector is not likely to restore investor confidence any time soon: the pipeline is glacial, demand-destruction is endemic and oversupply is rife. The risks therefore for the real estate sector as a whole are firmly weighted to the downside, with the slight silver lining coming in the form of high end space, particularly in the retail and office segments.Key Opportunities:
- The government has announced plans to create a single land registry for all state-owned real estate assets. It is preparing a sale of state assets and real estate that could raise as much as EUR50bn (US$70bn). The sale is expected to attract strong interest from international investors owing to Greece's status as a tourist destination and could lead to the expansion of resorts and complexes.
- Of all the sub-sectors, shopping malls and Grade A office space have proved the most resilience.
- Maximum rents in Thessaloniki outperformed the market.Key Risks:
- The Greek economy will remain mired in depression through 2012 as deep fiscal retrenchment and internal devaluation take a damaging toll.
- The prospect of further spending cuts and tax hikes will ensure that demonstrations and national strikes remain a key feature of the political landscape over the medium term.
- Should the eurozone recovery begin to falter and demand for Greek exports weaken, there is a risk that the economy could contract more than our 2012 forecast.
Click for Report details:Greece Real Estate Report Q2 2012