From the Tower of Piraeus and the new hotels that have already been launched to the new infrastructure and individual renovations, such as the one for the city's central market, it is certain that the port has recently evolved into one of the investment hotspots of Attica in tourism and real estate.
2023 marked the total restoration of Piraeus, where some of the most emblematic investments are concentrated, in addition to the growing interest that is also reflected in the part of buying and selling real estate: The areas around the port, from the last "pockets" with more affordable prices, have recorded in the previous two years 2021-2023 a double-digit rate of increase, at an average rate of 30% in the Municipality of Piraeus, as can be seen from the published advertisements, while especially from the summer onwards the "Golden Visa" has also played an important role for the granting of residence permits to real estate buyers from third countries.
According to what brokers and companies in the sector observe, such as V2 Development, one of the largest players in the domestic real estate market specialising in the Golden Visa program from 2013 onwards, when it was instituted, the increase in the purchase limit from 250,000 to 500,000 euros for the centre of Athens, the southern and northern suburbs has directed prospective buyers to Piraeus and the western suburbs, where the thresholds have remained low, resulting even in unjustified price increases in many cases, which can even reach 40% compared to the recent past.
Investment pole
In the investment field, in addition to the well-known names that have more or less connected their name with the port, such as COSCO, new projects are increasing and multiplying recently, including investments in the public infrastructure sector.
"We already saw some time before the pandemic the upcoming changes in the port, combined with the renovations promoted by the municipal authority in general, which is why we decided to invest in Piraeus," said Mr Errikos Arones, CEO of the company development Hellenic Properties, one of the newest... arrivals at the port.
The company reconstructed an old 1,500 sq.m building on Iroon Polytechniou 14 and Karaoli and Dimitriou, purchased in 2019 to create a 33-key 3-star hotel.
The "IP14" project, as it is called, has a gross value of 5 million euros and will operate from the spring of 2024 under the management of Hellina Hotel, with the main advantage of being located in an area of high commercial interest, just 150 metres from the Municipal Piraeus Theater and the metro terminal.
“About 16 million travellers pass through the port – there was a gap in modern hospitality. The idea had already arisen in 2019 with the rationale that the metro is coming in conjunction with the individual renovation programs by the municipal authority, which are still ongoing. Therefore, on our part, interest is also maintained for new investments as long as there is consistency and continuity of words and projects of the municipal authority. Therefore, we continue to look at Piraeus as an investment destination in commercial real estate due to the general infrastructure development and future development."
From the... earlier arrivals at the port, Dimand continues its investments, which sign, among others, two of the landmark projects, the first for the reconstruction of the Piraeus Tower and the second for the new Courthouse presented a few days ago.
As far as Pyrgos is concerned, the country's first digital green skyscraper, with an investment of more than 50 million euros from the scheme of Dimand-EBRD and Prodea Investments AEEAP, which prevailed in the municipality's concession tender in 2020, will be completed in March 2024. However, this year's Christmas marks the opening of the first Pyrgos store, specifically the JD Sports sports goods chain on the ground floor, in an area of over 1,500 sq.m.
Then, in the first part of 2024, the opening of the largest Zara store in Greece and one of the largest pan-European, almost 6,000 m2, housing the Zara and Zara Home brands in spaces from the ground floor to the 2nd floor. The new store will replace the two existing Zara stores with a total area of 3,000 m2 currently operating in Piraeus.
In addition, the Development Organisation of the Municipality of Piraeus has started work on a redevelopment "which, in combination with the utilisation of the Piraeus Tower, will further upgrade the area", as stated in this regard. The reason for the central market of the city and the construction of its bioclimatic shelter is to transform it into a modern covered market, its aesthetic and functional upgrade, with the parallel regeneration of the surrounding area along the perimeter of Makras Stoas, Hippokratous streets and behind the Tower, and the reconstruction of sidewalks and roads around the new landmark.
The project will exceed 3 million with an implementation horizon of 12 months from the start of work. Also, on Makras Stoas Street at the junction with Ethnikis Antistaseos, 100 metres from Pyrgos, the newly introduced Orilina Properties AEEAP has been placed in a preserved neoclassical building near the well-known square with the Clock of Piraeus, for luxurious office spaces in 2,000 sq.m.
At the same time, new data for the wider region is expected to be created by the new Piraeus Courthouse, presented a few days ago at the Municipal Theater by Dimand, which will run the project following the relevant competition.
According to the estimates of the mayor of Piraeus, Yiannis Moralis, the new building will be in operation in 2027 and will be, according to Dimitris Andriopoulos, the head of Dimand, "the first public, gold LEED, green, zero-emissions building in the country," housing 310 judicial and 565 administrative employees, while its forecast is for up to 1,200 jobs.
The building, on the "Daskalaki" property, will be located approximately 500 meters from the metro station, and a total of 26,000 sq.m. will be constructed. Superstructure and 10,000 underground, with 303 parking spaces and 1,500 sq.m. warehouses and archives, will be primarily financed from the resources of the Recovery Fund.
Overall, Dimand has been present with projects in the city of Piraeus for the last eight years, with the most iconic green offices in the old Papastratos facilities in Agios Dionysios, which now host 7,000 employees. The investments that Dimand has "run" in the area, including residential projects, correspond to funds of around 300 million euros for over 150,000 sq.m., with important agreements with well-known domestic real estate "players", such as Prodea Investments AEEAP for Pyrgos, Grivalia for the green offices in the old Papastratos, Premia Properties AEEAP for the serviced apartments in Agios Dionysios.
Residence and hotels
The sectors of serviced apartments (serviced apartments) for medium-long-term rental and houses, in general, are also considered among the most promising in the port and beyond Dimand, which has already taken a position with new projects having also acquired new properties near the area of the new Courts, mobility in the residential sector is a given.
Zoia's international investment platform is moving in exactly this direction, which started in the previous decade largely with Israeli funds but has now expanded its investment base with domestic and foreign funds. The company has gradually built a portfolio of dozens of buildings throughout Athens and Piraeus for their conversion into modern, small apartments for medium-term rental, including a building (formerly a small hotel) in Kastela.
Accordingly, DKG Development, the real estate investment, planning, development and management company led by Mr Konstantinos Petridis, was created in 2019 and now has a significant "reservoir" of projects in the area of serviced apartments throughout Athens and Piraeus, having entered into a partnership with Limehome, one of the most well-known serviced apartment management companies in Europe.
DKG Development has set the goal of delivering 400 mainly residential units within 2024, and indicatively in the port "The Mediterranean", with a completion horizon of 2024, will have 58 serviced apartments in front of Zeas marina.
Regarding hotel investments, just last Friday, December 22, the brand new "Athenarum Portus", the new 4-star hotel with a capacity of 49 rooms, debuted on a property on Leocharos and Navarinou Streets near the metro station. The hotel's name refers to the "port of Athens" and was one of the names of Piraeus from Roman times onwards.
It is about the renovation of an old office building owned by Prodea Investments AEEAP, which was leased with a long-term agreement by the MF TECHNIK group, owned by X.
Makris and A. Fouloulis, with an activity in the design and construction of buildings with a large presence in hotels as well. The information indicates that the entire project, with already high bookings for the whole of the next period, will go up for sale from the beginning of 2024 with an interested buyer-hotelier.
Very close to Athenarum Portus is the Mitsis group's new venture that will be ready by mid-2024 in an area where there is a big shortage of modern high-standard accommodation, especially from large groups.
Mitsis N'U Piraeus Port, with a capacity of 103 rooms, is located just 10 meters away from gate E7 and the cruise terminals within 5 minutes, a market targeted by this hotel for travellers who may be going to or are returning from a Mediterranean cruise.
The new 4-star hotel in Piraeus will also have quick access to the metro station and is part of Mitsis Hotels' strategy to "open" to urban hotels.
Mitsis N’U Piraeus Port
The Douzoglou group for the former "Mistral" hotel in Kastela is under planning until the finalisation of the final Hilton brand that will "sign" it.
Initially, the hotel in Mikrolimanos was announced to operate under the brand of the Hampton group, "Hampton by Hilton Piraeus," for an 83-room hotel after a renovation of 5.5 million euros. Now more likely - although it has not yet been finalised - is the group's Tapestry brand, which recently expanded to Greece, with Chania as the first stop for the "Chania Flair Boutique Hotel, Tapestry Collection by Hilton," which will be the first hotel of the group that will operate all year round on the island.
Stefania Souki is a columnist for New Money.
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