February 2, 2023

Athens News

News in English from Greece

€3 billion projects that will change the face of Attica


Large projects with a budget of more than €3 billion, excluding indirect budgetary benefits from large interventions, have been launched or are about to start in 2023.

It is expected that they will further change the face of Athens and Attica, improving chronically degraded areas and raising already developed areas to a new level. Characteristically, such projects as the cyber park on the site of the PyRKAL factory, the double reconstruction of the Panathinaikos and Botaniko stadiums, and the reconstruction of Eleonas will create a new spatial dynamic in the urban fabric of the capital, unloading the center of Athens.

At the same time, major hospitality projects, such as the emergence of Hilton as a new integrated center with extensive entertainment activities, or the development of iconic hotels on the Attic Riviera, such as One & Only in Asteria and two new luxury hotels in Elliniko branded by major foreign prestigious chains will be added to the already established large Athens hotels, elevating the capital’s status as an international destination and further strengthening the local economy. None of these projects is without serious problems and obstacles. However, their dynamics are such that these obstacles will not interfere with any of them, according to the market and investors committed to them.

In Vouliagmeni

These are projects that respond to the high demand for high-yield luxury residential real estate, with the Athenian Riviera leading in terms of the number of transactions. Asteras Vouliagmeni is a “magnet” for high-value deals: the proceeds from the sale of 13 villas on the southwestern side of the peninsula exceeded 500 million euros. Significantly, Erietta Kurkulu-Latsis and her brother Philip recently became buyers of two plots of land in a unique property on the Attic Riviera, and the total price of the transaction was 75 million euros. The sites are located on the southwestern side of the Vouliagmeni peninsula, where the now demolished Aphrodite Hotel is located. The cost of building houses, each with an area of ​​more than 1,000 m2 on average, will be borne by their new owners. The total area of ​​all 13 plots is about 80 ha, which makes the average size of each plot 6.15 ha, and the price of each plot ranges from 37.5 million euros to 39 million euros, which corresponds to a price of 6.3 million euros per hectare.

Stars of Glyfada

A unique piece of the southern suburban real estate puzzle is the piece of land on which the Asteria Glyfada Hotel was located, where Grivalia Hospitality is developing the One&Only Aesthesis Integrated Complex with a completion date of Spring 2023. According to the architectural design, 14 independent residences, non-volatile, with a private outdoor area and parking will be built on the western border of the site. The advantage of these complexes is that they are located within walking distance from Athens and at the same time have the tranquility of the sea coast and the feeling of a private island. The total building area will be less than 1% of the area, i.е. less than 28,000 m², of which 20,000 m² will be existing buildings. The project, which has a budget of 150 million euros, will build a five-star hotel with 127 rooms managed by One & Only. One of the complex’s two two-story buildings – with a curved shape – belongs to the main reception building, which will house commercial and hotel premises (12 rooms). The 100 bell towers of the complex, which were the benchmark in the 1960s, will be converted into 95 furnished apartments as ten of them will be grouped in pairs.

Hilton

Tourist facilities are an integral part of the constantly changing map of the real estate market. TEMES plays a leading role in this sector. In the heart of Athens, at the Hilton Hotel, TEMES has begun the renovation of the Hilton complex, which will include the creation of 50 luxury residences that will operate under the Hilton Conrad Residences and Waldorf Astoria Residences brands. Investments in building facilities, infrastructure and equipment, which of course include a hotel and other infrastructure of the finished complex, will exceed 130 million, in addition to 145 million already spent since 2016 on the acquisition of real estate. Thus, the total investment will exceed 275 million and, according to market circles, may approach 300 million.

Agios Kosmas

However, TEMES has also entered into a joint venture with Lamda Development to develop a hotel and residences to be located on the Agios Kosmas marina and a hotel complex on the other side of the waterfront adjacent to the upscale residential area of ​​Lamda. The majority stake in the scheme, which will develop two luxury housing projects, each around the perimeter of two respective luxury hotels, is retained by the group, which will develop a hotel and residences on one side and a hotel complex on the other. In both companies, TEMES will own 70% and Lamda Development will own 30%, and the total investment is estimated at more than 300 million euros.

Saronida

Staying in the southern suburbs, further developments are expected next year for the Saronida Olympos Golf Project, which will build a 6,000-acre hotel, holiday home and golf course in Saronida with a budget of €840 million. A tourist port and renewable energy facilities are also planned, with the investment being carried out by Beta Development Real Estate, which has previously worked with Arab funds present in Astera Vouliagmeni and the tourism project in Mykonos.

The former premises of the PYRKAL industrial plant, located on 157 acres of land, just three kilometers from the center of Athens, will house nine ministries, which are currently located in 127 buildings.


Government Park, “Botanico” renovation and two logistics centers
Another project worth 250 million euros, which will be ready next year, when a tender is expected to be announced, is a government park on the territory of the former Pirokal industrial complex. The 157 hectares, just three kilometers from the center of Athens, will house nine ministries, which are currently located in 127 buildings and cost 33 million euros in rent and operating costs. Ministries to be transferred include the ministries of finance, development, labor, health, environment, culture, interior, rural development and tourism. Together with them, the State Property Fund (EESYP) and the State Real Estate Company (ETAD), the State Property Fund (TAIPED) and the Independent State Revenue Administration (ADSE) will be resettled. The ultimate goal of the project is to convert the current government office buildings into residential space given the high demand for housing in the center of Athens. The project comes with an estimated fiscal benefit of €1 billion over 7-8 years.

In the municipality of Athens

A stone’s throw from the Acropolis, in the areas of Eleonas – Votaniko, belonging to the third municipal district of Athens, according to experts, the next big wave of urban revival should take place. The reason is that there is still a significant amount of unused land in these areas, which will increase due to planned developments such as a double redevelopment and the relocation of transport companies from Elione. The budget of the Botanikos Double Redevelopment – Alexandra Avenue project is 267 million euros, with 100 million euros of activities already included in the Recovery Fund. It relates in particular to redevelopment projects in Botanikos and includes road works, a cycle path, construction of storm water and sewerage networks, green spaces and public spaces in the area of ​​the double redevelopment and the naval fort. A tender is currently underway for the construction of the new Panathinaikos Football Stadium in Votanikos, with a deadline of 12 January. By 2026, it is planned to build a modern FIFA-UEFA category 4 stadium with a capacity of at least 38,500 seats (up to 40,000). The arena, which has a budget of 126 million euros, will include 1,300 luxury seats, 325 underground parking spaces and seven retail outlets. The new arena is in particular demand due to two features. View of the Acropolis and easy access to it with the help of public public transport. The dual redevelopment is the largest urban regeneration at the municipality level of Athens as the area will have a modern road network and infrastructure. The stadium will also attract significant real estate investment and leading real estate players have already established themselves in the area. This mobility is understandable given that the necessary road and street lighting works will be carried out in the wider Eleonas area, and that linear public spaces 20 meters wide will be created on both sides of Iera Odos, as well as a cycle path.

At the same time, the relocation of hundreds of transport companies located in Botanikos will play a key role in the revitalization of the area. According to an agreement signed between the Hellenic Real Estate Development Fund and the municipality of Fili, the latter will create the largest transport and logistics center in Southeast Europe. In fact, a green innovation business park will be created on an area of ​​about 450 hectares in the Spiles district in Fili. The project budget, which will be implemented either through a public-private partnership (PPP) or under a concession, is 500 million euros, including activities to connect the park with Attiki Odos and the national railway network. The goal is to complete the studies and licensing procedures in 2023 so that the tender will take place in 2024 and the move in 2025.

In Triasio

The freight center on the Triasio field is also crucial to the development of Greece as a transit hub. The contract, under which the ETVA VIPE – Goldair Cargo scheme is the contractor, has been ratified by Parliament. The project budget could reach 180 million euros (taking into account the increase in the prices of building materials) and its implementation is estimated to start in 2023. The consortium is expected to build 210,000 square meters of covered warehouses, 250,000 pallet spaces, 4,000 spaces for cars and 120 spaces for trucks on 588 hectares of land at various stages. The construction of the cargo center, whose contract value is 109 million euros, will be carried out by Mytilineos.



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