The 15 building renovation and refurbishment projects, which are either already underway or due to start in the coming months, are expected to lead to the modernization of important parts of the Attica Basin, especially in the center of Athens. From the restoration of the residence of Maria Callas in Patision, the reconstruction of Mignon and the Tower of Piraeus, to the reconstruction of old industrial facilities such as the CHROPEI factories in Faliro, the former Athenian paper mill in Votanikos, Halcor in Piraeus street. and the Kamba wineries in Kanza, a series of properties that have not been used for decades are now being re-used.

Investments of this kind create new conditions in the real estate market, as well as provide capital growth in surrounding properties, since the benefits are more general. As Dikka Agapitidou, general manager of JLL-Athenian Finance, explains to K, “Such projects have a positive impact both on the immediate area of ​​each facility under construction and on the psychology of the surrounding residents and workers. , as they lead to a more general renewal.” According to her, these investments can provide a return that could exceed 25% over time, since most of these territories are now truly degraded. “Equally important, however, these projects will environmentally upgrade the old buildings they replace, as well as the wider surrounding area, while reducing energy consumption,” says Ms. Agapitidou.

A typical example is the reconstruction of the Piraeus Tower, which is scheduled to be completed by the end of the year. The rent for office space in this building exceeds 24 EUR/sq.m. monthly, and in fact, as the head of JLL-Athenian Finance points out, “it seems that the rent for business premises in the vicinity of the building has also been delayed.”

Investments in progress can generate capital gains that can exceed 25% over time.

“In the projects that have started or are planned today, we see both the readiness of the state to preserve historical buildings, such as the house of Maria Callas on Patision Street, and the response of a private initiative to a demand that is not satisfied with the existing offer on the real estate market, such as the creation of apartments in a hotel Hilton”, notes Ms. Agapitidou. In the case of the reconstruction of the Arsaköy pavilion, which has turned into a food hall, there is a combination of both, since, on the one hand, the existing symbolic space is modernized, and on the other hand, something is offered to the market The project is implemented by Legendary Foods with the participation of the Oikonomou shipbuilding family The property is leased to Philekpedevitevi Etairia SA

The Biohalco Group, through Noval Property AEEAP, is implementing one of the largest urban regeneration efforts with the preservation of existing buildings. The proposed investment contributes to the “restoration” and strengthening of the Eleonas Cultural Pole through new proposed activities that will function in addition to the strong cultural character.

The company is planning a comprehensive cultural, commercial and tourist attraction for visitors from all over Attica, keeping old industrial buildings but refurbishing them for other uses. For example, two of the listed buildings will be converted into a museum and digital art space. Accordingly, shops and catering areas are planned primarily on the first floors of the buildings, and an open-air multi-purpose food and gastronomy center is moving forward in the center of the 70-acre site. A residential complex will be created on the site, as well as a hotel overlooking Piraeus Street.

It is expected that a total of 55,000 m2 will be built, of which 25% will be residential, 25% office, 14% hotels, 20% will be used for trade and catering and another 14% cultural facilities. It will be the first “area” in Greece to be LEED Gold certified for its low environmental impact practices. The necessary permits are expected to be received by the second half of 2024.

Renovation of buildings instead of new buildings

Another major factor in explaining individuals’ shift to refurbishment and refurbishment projects is the significant benefits they offer over building a complete building from scratch. The benefit is twofold, both financial and environmental. Repairs are clearly cheaper as fewer materials are used. This leads to a reduction in the production of pollutants such as carbon dioxide, which is produced when energy-intensive and polluting materials such as steel and concrete are used. Less materials means less waste, as well as transport work, which also pollutes the environment due to the use of trucks. At the same time, the city’s existing building stock is allocated and utilized through reconstruction.

PwC’s recent annual Emerging Trends in Real Estate report on behalf of the Urban Land Institute (ULI) notes that 54% of properties purchased last year by investment funds have changed uses. This percentage is expected to increase to 78% over the next five years. In terms of existing office buildings, the most popular option, with 64%, is to convert them to residential buildings, followed by 18% to convert them to mixed-use buildings, for example. by adding dining areas. Accordingly, in existing malls or parks, the most popular option at 33% is to convert them into mixed-use buildings, followed by housing at 26% and logistics at 18%.

Market leaders such as Thasos Kotzanastasis, executive member of ULI’s global steering committee and managing director of international real estate investment management company 8G Group, point out that “there are not many buildings in Greece that meet the ESG criteria, so they will become obsolete if in the coming years significant funds will not be invested in their energy and functional modernization. This trend is now beginning to show overseas as investors are choosing to buy existing property and renovate it rather than build new buildings.” Thus, the carbon footprint is limited and the burden on the environment is reduced.

In the current situation, this element becomes even more critical due to the significant rise in the cost of both the cost of building materials and labor. In this context, according to a PwC survey, 62% of respondents indicated that the purchase and renovation of an existing building is the preferred option for acquiring new property.

New ways of using culture, hospitality, labor are radically changing the area of ​​the Museum.

One of the most characteristic areas of the center of Athens that has undergone a total modernization is the section of Patision Avenue around the National Archaeological Museum, also known as the “Museum”. Located close to Victoria Square and adjacent to the Polytechnic Institute, the area has garnered a number of redevelopment investments that will turn it into one of the city’s important destinations for culture, hospitality, living and work.

The most recent step concerns the modernization of the Maria Callas house. As it became known last month, the four-storey building of 1925, built in 1925, located at the intersection of 61 Patision streets, will be completely reconstructed into the Maria Callas Academy of Lyrical Art. The project has a budget of 6.8 million euros and will revive the place where the Greek high-pitched singer lived with her family during her visit to Athens from 1937 until 1945 when she returned to New York.
The said project, combined with the ongoing modernization and expansion process of the National Archaeological Museum, is expected to create a strong new cultural pole in the area, making it a necessary “stop-shop” for foreign visitors coming to Athens. Thus, an increase in demand for hotel and catering facilities is expected.

In this regard, two new hotel complexes are already being launched in the district. The most important investment concerns the use of the site where the Athenaion Theater was located in the past, at the intersection of Patision and Marni streets. In its place, a new hotel of the Accor group is being built, where a division under the IBIS Styles brand will operate. This is a project of about 30 million euros. According to the information, the new IBIS will have a capacity of more than 370 beds.

The two-acre site is owned by the Trianteio Vocational School in Patras, with a related agreement to lease it from a French hotel group for the next 50 years. This is the most important contract of the school in question. It is worth noting that the location of the new hotel is considered especially privileged, as it is close to Omonia Square and the business triangle of Athens, and also offers excellent access for those interested, both by land and ISAP, since Victoria Square Station is a few meters away .

At the same time, another hotel in the area is currently being prepared by the Fattal group. This is a building that will be located at 7 Averof Street, close to Patision Street and the National Technical University of Athens. The specific building will operate under the Leonardo Boutique Athens brand.

The Automobile Museum also operates in the vicinity, at the intersection of Ioulianos and 3 September streets. In fact, the offices of the American group Sitel now operate in this very building, the Athens Capitol of the Haragionis group.

The customer service group has selected the property in question for its “headquarters” in Greece, renting an area of ​​6,500 sq.m. At a very close distance is the emblematic OTE building, where modernization and static protection work continues. The information indicates that the goal is to reopen the resource to host group services.