Based on market research carried out by NAI Hellas on a sample of 45 European property
investors, it looks like there is a...
1. Economic stability
2. Political stability
3. Ability to identify investment opportunities
4. High growth opportunities
...
Q7: When considering investing in Greece what would be the three (3) major factors
that would act as drivers for you?
(Fro...
of 3

NAI Hellas_Greece back on the investment map_November 2014

Published on: Mar 3, 2016
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Transcripts - NAI Hellas_Greece back on the investment map_November 2014

  • 1. Based on market research carried out by NAI Hellas on a sample of 45 European property investors, it looks like there is a changing environment, with Greece gradually regaining investors' trust and re-entering the list of investment destinations. Ιs Greece back on the investment map of international investors? Q1: Would you consider investing in the Greek Real Estate Market? Yes Possibly No 33% 58% 9% Targeted equity IRR when considering an international property investment and a Greek property investment 40% 35% 30% 25% 20% 15% 10% 5% 0% 10%-12% 13%-15% 16%-18% <18%7%-9% %ofrepplies Targeted Equity IRR International Property Markets Greek Property Market A similar indication of a changing positive appetite was highlighted during the recent Prodexpo Conference in Athens, in October 2014, entitled 'Developing the Future', where leading The results of our research are presented below: Given the expectation of a zero Budget deficit in 2015 and no further financial support required, it is safe to talk about recovery... Newsletter What are their requirements? Our research reveals that there is a clear investment appetite for Greece, mostly focused on Hotel & Leisure. Economical and political considerations, along with inconsistent tax policies and market illiquidity still remain the most significant barriers to entry. Minimum expected returns for Greece exceed 12% (as expressed by the Equity IRR), while 75% of the participants said they would consider undertaking some sort of development risk. real estate professionals confirmed increased interest in the market from international investors. Q2: What is your targeted equity Internal Rate of Return (IRR) when considering an international property investment and when considering investing in Greece? As predicted in the NAI Hellas Commercial Real Estate Market Report 2013, the stabilisation of the Greek property market in 2014 is becoming more apparent. Given the expectation of a zero Budget deficit in 2015 and no further financial support required, it is safe to talk about recovery, given reasonable political stability.
  • 2. 1. Economic stability 2. Political stability 3. Ability to identify investment opportunities 4. High growth opportunities 5. Low taxation 6. Market liquidity 7. Structured legal framework 8. Low government intervention 9. A commercial lease structure providing long term security 10. Ease of managing and operating investments Q3: Please select the top five (5) Drivers of international property investment that are most important to you. (From a list of 25 alternatives) Q4: Please select the top five (5) Barriers to international property investment. 1. Economic instability 2. Political instability 3. Low market transparency 4. Low growth opportunities 5. Unsupportive legal framework 6. Market illiquidity 7. High transaction costs 8. Difficulties in managing and operating investments 9. Absence of reliable indices (From a list of 25 alternatives) Q5: How familiar are you with the Greek Real Estate Market? Very familiar Quite familiar Not familiar at all 8% 67% 25% Q6: Is local finance a pre-requisite for you when considering an international property investment? Yes No 42% 58%
  • 3. Q7: When considering investing in Greece what would be the three (3) major factors that would act as drivers for you? (From a list of 10 alternatives) 1. Anticipated capital appreciation in the short to medium term 2. No currency risk 3. Anticipated liquidation of real estate assets by Greek Financial Institutions 4. Continuous growth in tourism 5. Regeneration projects in major cities 6. Fiscal restructuring Q8: When considering investing in Greece which would be the three (3) major factors that would act as barriers for you? (From a list of 10 alternatives) 1. Taxation inconsistency 2. Current Greek economic climate 3. Market illiquidity 4. Shortage of quality product 5. Limited availability of bank finance 6. Austerity measures 7. Unrealistic sellers' expectations Q9: In your opinion what are the investment prospects for Greece in the next five years? 4% 7% Good Very Good Very Poor Poor Fair Disclaimer All data contained in this report has been compiled by NAI Hellas/AVENT S.A. and is published for general information purposes only. While every effort has been made to ensure the accuracy of the data and other material contained in this report, NAI Hellas/AVENT S.A. does not accept any liability (whether in contract, tort or otherwise) to any person for any loss or damage suffered as a result of any errors or omissions. The information, opinions and forecasts set out in the report should not be relied upon to replace professional advice on specific matters, and no responsibility for loss occasioned to any person acting, or refraining from acting, as a result of any material in this publication can be accepted by NAI Hellas/AVENT S.A. © NAI Hellas/AVENT S.A. November 2014 4, Nikitara & Psaron str. 152 32 Chalandri Athens, Greece tel +30 210 6811760 fax +30 210 6811722 naiglobal.com Contacts Thomas Ziogas Business Development Manager t.ziogas@naihellas.gr Eleni Makri Research e.makri@naihellas.gr Q10: If you were to invest in Greece how would you allocate your property portfolio? 100% 80% 60% 40% 20% 0% Hotel & Leisure 37% Industrial 11% Logistics 5% Retail 21% Office 26% 23% 8% 58%

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