Record broken investments in Logistics – up to 305m euros

One after another is what Greek AEPAP and private capital break in logistics. In 2023 the total volume of investments reached 305m euros, surpassing the record volume of 2022, which reached 280m euros. According to the Savills survey, it is estimated that over the next two years a total of around 470,000 sq.m. of new modern storage sites will be delivered to the Athenian market. The logistics real estate sector has experienced an explosion in demand in recent years, reflecting the growing need for well equipped and strategically placed logistics sites. The stabilisation of the Greek economy strengthens investor confidence, making Athens a favourable destination for the establishment or expansion of their activities in the field of logistics. The privileged locations within Athens play a decisive role in the real estate market logistics. Areas with excellent transport connections and access to basic amenities are particularly sought after by businesses. These sites provide proximity to major transport hubs, including ports, airports and major motorways, which facilitate efficient management of the supply chain. In particular, areas of the Northern Suburbs such as Lykovrisi, Kato Kifisia, Kryoneri, Metamorphosis and Agios Stefanos are considered excellent sites for warehouses and industrial facilities due to proximity to the city of Athens, but mainly due to their location near E75 National Road, which connects the capital with Thessaloniki and the rest of mainland Greece. The area’s industrial stock, though considered good in terms of technical specifications, is quite outdated, especially since it developed during the 1980s and 1990s. Another ideal area that is an investment hotspot for logistics center are the Mesogeia and the areas of Spata, Airport, Paiania, Koropi and Markopoulos, which can boast its good proximity to Athens airport. These regions offer more competitive rents than Thriasio Field and Kryoneri, and form an upcoming market for industrial alternative investments such as data centres. Of course, fillets are also the Thriasio Field that includes Mandra, Magoula, Elefsina and Aspropyrgos. Thriasio Field is strategically located near the city of Athens and also near the port of the capital, Piraeus. The area has acquired appropriate urban conditions – hence, demand from both end users and contractors/investors is at high levels. It is noted that most of the state-of-the-art facilities offering the latest technologies in the supply chain are located in this submarket. Furthermore, the wider area of Boeotia consisting of the regions of Schimatari, Avlona and Oinophyta is considered a secondary market. The reserve is characterized mainly by satisfactory quality standards, as the majority of the offer developed in the late 1990s through the early decade. It is noted that a few investments are recorded in this area, as most investors in the industry focus on the other submarkets. Finally, the market of Piraeus and specifically the areas of Perama, St. John, Reddi, Drapetsona and the Port are characterized mainly by old warehouses developed in the 1960s and 1970s, although they have great accessibility in other parts of the city and especially in Thriasios Field. As regards the prices of rents in these logistics, they are adjusted according to the demand of each region. In the North, considered one of the country’s most important logistics markets, rental prices are reached for the category stock A of about EUR 5,50/m2/month, while Class B has rents of EUR 3,50/m2/month. Accessibility combined with the relatively limited stock offered results in low percentages of vacant spaces, parameters that shape the above levels of rent. To the west, where the region has attracted the highest levels of capital invested in the sector in recent times, the highest rents, which are of the order of EUR 5/m2/month, have been noted. The ESG-certified buildings have even achieved higher rents of EUR 5,50/m2/month. In terms of the Piraeus sub-market, it has low rents that are set at 3,50 – 4.0 euros/m2/month. Although the offer is characterized mainly by an outdated stock and buildings built in the 1990s, the area has significant growth prospects, as it is literally next to the port. It is noted that a significant increase in freight activity has been recorded over the last 5 years placing the port of Piraeus in the first category of European ports.