Thessaloniki, Northern Greece Real Estate Market Attractive But Challenging
Upgrading infrastructure, developing hotel and transport facilities, setting a clear framework for the real estate market in Northern Greece were the focus of the 7th Prodexpo North conference held at the Makedonia Palace Hotel in Thessaloniki.
Among others, speakers confirmed that Northern Greece had great potential and underlined as the first priority the importance of linking the port of Thessaloniki with the main highway and railway and expanding the airport.
DHR Services Executive President Konstantinos Alexopoulos referred to the importance of extending the airport’s runway for both tour operators and hoteliers. He noted that there is interest in the tourism potential of smaller destinations in Northern Greece, as well as in combining the destinations of Thessaloniki and Halkidiki for joint tourism packages. However, he said, “the question of connectivity arises”.
During a panel discussion on the challenges and opportunities for new hotel investments in the area, tourism and hospitality professionals expressed their interest in launching more projects in Northern Greece – mainly in Halkidiki – and adding more investments to their portfolios.
HotelBrain President and Founder Panos Paleologos said he was keen on adding hotels in Halkidiki to the company’s portfolio. However, he highlighted that it is difficult to find real estate in Northern Greece, as “people are emotionally attached to their property”.
Additionally, speakers referred to the advantages of Thessaloniki as a city break destination, underlining its key position as a base for other destinations. Experts underlined, however, that the key challenge was implementation.
Touching on the subject, Brown Hotels Founder Leon Avigad noted that the group is looking for interesting locations and hotels to place the Brown brand. “Thessaloniki has its own value compared to Athens, with the main advantages of being a lively and humane city, with history, with distances you can cover on foot, close to beaches and Halkidiki nearby,” he said. However, Avigad added that it is difficult for investors to come from Europe, mainly due to the lack of a “one stop shop” for tourism projects.
Referring to the opportunities in real estate, the professionals said interest and demand was increasing particular for holiday homes and hotels. Buyers from Balkan countries and Turkey are eyeing properties in Kavala and Halkidiki while investors from the US, Israel, Jordan and Europe are keen on buying in Thessaloniki.
Yiorgos Gavrielidis from Elxis, a leading Greek real estate and consulting company, pointed out that there is an increase in entrepreneurs that see Greece as a destination for real estate investment.
According to Gavrielidis, due to the country’s popularity as a tourism destination, there is a shift in younger ages who eye Greece with financial interest.
Lastly, the rise in rents and prices, said real estate experts, demonstrate a strong demand for property in the region and reflect a healthy Greek economy which is attracting investors.