kathimerini.gr
€2 Billion Greek Logistics Investment Boom Driven by High Demand
Investments exceeding €2 billion are planned for over 650,000 sq m of logistics space in Athens and Thessaloniki, driven by high demand and low supply, resulting in competitive rental rates and high returns compared to other European markets, according to Geoaxis Property & Valuation Services.
- How do rental rates and investment returns in the Greek logistics market compare to those in other mature European markets?
- The Greek logistics market is experiencing a supply shortage, driving up property values and rental rates. While new construction is underway, most spaces are already leased before completion, indicating robust demand. This imbalance is resulting in high investment returns, exceeding those of other European markets.
- What is the current state of the Greek logistics real estate market, and what are the primary factors influencing investment and rental trends?
- Over €2 billion in investments are underway for developing more than 650,000 sq m of logistics infrastructure in Athens and Thessaloniki. Demand for modern logistics space remains extremely high, with rents, despite recent increases, still significantly more competitive than in other established European markets. This is according to Geoaxis Property & Valuation Services' annual analysis.
- What are the long-term prospects for the Greek logistics real estate market, considering factors such as supply, demand, and economic conditions?
- The high demand and low supply are expected to continue pushing rental prices upward in the coming years. The current average rental price is significantly lower than in other European countries, leaving room for further growth. Investors who entered the market early are already seeing almost double-digit annual returns.
Cognitive Concepts
Framing Bias
The analysis is framed positively, highlighting the strong demand and attractive investment opportunities in the Greek logistics market. The use of phrases such as "very high demand" and "most competitive in Europe" creates a favorable impression. While the information provided is factually accurate, this optimistic framing could potentially overemphasize the benefits and downplay potential risks.
Language Bias
The language used is generally neutral and objective. However, the repeated emphasis on positive aspects of the market (e.g., 'very high demand', 'most competitive') subtly skews the tone toward a more optimistic view. More balanced phrasing could improve neutrality.
Bias by Omission
The analysis focuses primarily on the positive aspects of the Greek logistics market, such as high demand and competitive rental prices compared to other European markets. It does not delve into potential negative factors that might influence investment decisions, such as infrastructural limitations, bureaucratic hurdles, or the potential impact of geopolitical instability. While the limited scope may be due to practical constraints, this omission could limit a reader's full understanding of the market's complexity.
False Dichotomy
The analysis presents a somewhat simplified view of the market by emphasizing the high demand and limited supply, without exploring the possibility of market saturation in the future or the potential emergence of competing solutions. It doesn't fully consider the potential impact of economic downturns on investment returns.
Sustainable Development Goals
The development of over 650,000 square meters of logistics infrastructure in Athens and Thessaloniki represents a significant investment in infrastructure, supporting efficient movement of goods and boosting economic activity. This aligns with SDG 9 which promotes resilient infrastructure, inclusive and sustainable industrialization and fosters innovation.