ECONOMY
Foreign Banks Landing In 2022
2022 is going to be a competitive year for the banking sector in Greece. Major global banks, namely Goldman Sachs, Bank of America, Nomura Bank, banks from France, Sweden and Bulgaria all aim to establish a branch office in the Greek capital in the coming months. For those who already have a presence in the country such as JP Morgan and Deutsche Bank will be further expanding their banking businesses.
Greek GDP Growth The Highest In Eurozone
Greece recorded the biggest GDP growth rate 13.4% in the eurozone in the third quarter of 2021 compared to the same period last year. Eurostat, the statistics compiled by the EU, projected Greece’s annual GDP in 2021 will see a gain of 6.7%. On the other hand, Deutsche Bank estimated Greek economy will record an explosive surge of 8.7% in 2021.
How Well Greece Manages Global Crisis?
A new study on crisis management and resilience during the pandemic has ranked Greece amongst the top ten in multiple categories. The international study by Berteslmann Foundation compared 29 OECD and EU countries to find out how well equipped they are to cope with the crisis, paying specific attention to “the resilience of democracy, the resilience of governance capacity, economic resilience and the resilience of the welfare state during the first year of the pandemic.” The study found that Greece did exceptionally well across multiple categories, and that its governance was improved by the pandemic.
INVESTMENTS
Funds Continue Pumping Into Greece
International investment funds are returning to the Greek property market after a break from the pandemic, here are a few examples:
Dromeus Capital has secured funds of more than €300 million that it intends to invest for the acquisition of logistics assets and data centers. It is also staking a claim to the Project Terra package of Piraeus Bank properties, worth over €1 billion.
Brook Lane Capital is also eyeing Project Terra, having also set up a joint venture with Noval Property to purchase and develop office space. Specifically, the construction of a complex of office buildings in Maroussi (former Kodak property) with a total area of approximately 49,000 sq.m. The project will be implemented through The Grid, which is 50% controlled by Noval Property and 50% by Mavani Holdings Limited (owned by Brook Lane Capital). Brook Lane is also said to be the main candidate for developing a mixed-use tower block consisting of a hotel, apartments and office space at Elliniko, in cooperation with Lamda Development, an investment expected to exceed €150 million.
REAL ESTATE
Commercial Rental Income On The Rise
The provisional data released in mid-December by the Bank of Greece revealed that nominal prime office prices in the greater area of the Greek capital in the first half of 2021 increased by 3.2%, compared with the second half of 2020. During the same period, nominal prime retail prices for the entire country grew by 1.1% while retail rents were up by 0.9% compared with the second half last year.
Rental Income Tax Relieve
More than 6.3 million property owners will pay a lower annual property tax (ENFIA) for 2022. According to the Minister of Finance, Christos Staikouras, this reduction, which is estimated to be in the range of 2.5–3%, is added to the average reduction of 22% that is valid from 2019.
On the other hand, the Greek government is considering of lowering the 45% tax rate for the top rental income bracket by adding one or two more tax brackets in order to ease the financial burden imposed on many landlords.
INDUSTRY NEWS
Golden Visas Make Up Lost Ground
989 Golden Visas have been issued during the first 11 months of this year on the ground of real estate investment, a sign of recovery despite the ongoing peril of the pandemic, as the total number of permits issued under the same category in 2020 was 938. It is expected that the figure will likely come close to or exceed 1K for the whole year.
The latest data shown that 9,473 such permits have been granted to individual investors, and a total of 28,411 including their family members since the scheme launched in 2015. The lion’s share have gone to the Chinese, who account for 67%, while Turkish nationals came second and followed by Russians and Lebanese.
TOURISM
Attica: World’s Leading Seaside Metropolitan Destination
Greece’s Attica region was crowned “World’s Leading Seaside Metropolitan Destination” at the recent World Travel Awards (WTA) 2021, against leading destinations including Cape Town, Dubai, Miami, Shanghai, Jakarta and Perth of Australia.
The Attica region was rewarded due to its award-winning airport, luxury hotels and accommodation options for all budgets, the Acropolis, one of the world’s most significant cultural heritage monuments, blue Flag awarded beaches, food and entertainment services, marinas, numerous gastronomy options on the Athenian Riviera and a unique combination of mountain and sea.
Discover Greek Winter Hidden Gems
The Civil Aviation Authority (CYA) announced that travel traffic rose by 344.25% in November 2021 compared to November 2020, and arrivals from abroad rose by a whopping 524.7% in the same month compared to last November. Moreover, the number of flights in November 2021 rose 110.6% compared to the same month in 2021. Looks like some travellers are well aware of the country’s unique hidden gems in winter beyond the places for “sun and sea”.
One-of-a-kind Experience Park
Lamda Development opened on December 20th a part of the Elliniko Metropolitan Park to the public, ahead of its project schedule. The Experience Park covers an area in excess of 70,000 square meters and constitutes an integral part of the Metropolitan Park. Five hundred trees have been planted on the site alongside 55,000 other plants – all Mediterranean species, according to a design that is based on local biodiversity.
