For those looking for investment options with perspective, Greek real estate remains a market with significant growth potential, according to a report by Alpha Finance, which highlights that Greek real estate investment trusts are trading at a 40% discount to net asset value (NAV).

Alpha Finance stands on five key factors that are boosting this market, namely:

• strong economic growth, which supports the demand for real estate
• the supply-demand imbalance that continues to push up prices
• the expected normalisation of interest rates in the medium term, which is expected to improve the financing of new investments
• the significant investments to upgrade infrastructure as well as existing properties, which increase the value of the companies' portfolio
• the consistently positive trends in tourism, which support the market for both commercial and residential real estate

VALUATIONS AND PORTFOLIO STRUCTURE

At the same time, the brokerage adds that despite the rise in recent years, valuations remain attractive, making the real estate market an attractive investment opportunity.

In terms of portfolio structure, commercial real estate plays an important role with significant diversification in terms of individual categories, while several of the AIFs continue to implement investment programmes in order to strengthen their portfolios and profitability.

PRICES-TARGETS

The brokerage initiates coverage for four AIFMs by giving the following target prices:

• BriQ Properties: €3.4 (upside of 51%)
• Premia Properties: €1.85 (+50%)
• Trade Estates: €2.45 (+48%)
• Noval Property: €3.3 (+37%)

PRESENCE

There are currently 8 AIFs trading on the Athens Stock Exchange, while three companies crossed the market threshold in the last two years: Trade Estates and Orilina in 2023 and Noval Property in 2024. It should be noted that Intercontinental International merged with BriQ Properties, marking a first step of consolidation in the sector.