Rising Prices in Little Athens Boost Revenue for Lamda Development

Property prices in the residential project ‘Little Athens’ by Lamda Development continue to rise steadily, reflecting strong demand for the Metropolitan Pole of Elliniko. Specifically, the price per square meter has increased by approximately €1,000 compared to previous estimates, reaching €8,500 from €7,600 in the last presentation of the project. The delay in circulating new units due to redesigns prompted by changes in building regulations gave the company an opportunity to optimize selling prices, leveraging positive market dynamics, as stated by Apostolos Zafolias, Chief Strategy & IR Officer of Lamda Development during yesterday’s analyst briefing. The mixed profit margins at Little Athens are exceptionally high, ranging between 36% and 44% pre-tax and before land and infrastructure costs, surpassing even those of the coastal zone. Despite challenges from increased demand and limited labor availability in the construction market, works are progressing regularly thanks to effective internal management and flexibility by the company’s subsidiary CBU, which is implementing four projects within the masterplan, including Promenade Heights and three in Little Athens. Cumulative sales agreements for plots amount to €1.77 billion, with about €900 million expected to be collected by 2028 from projects already on the market. To date, cumulative revenue from home sales reaches €1.43 billion, up from €1.38 billion in the previous quarter and €1.31 billion at the end of 2024, highlighting continuous revenue flow. The residential sector remains the primary income pillar, generating €790 million in revenue, while plot sales and rentals outside homes have strengthened to €390 million. Commercial center plot revenues remain steady at €240 million. Residential developments at Elliniko are fully underway, with the first housing complexes expected to be completed by the end of 2026, deliveries starting in 2027, and continuing into 2028. A minor delay of 3-4 months in new developments planned for May and June 2025 is attributed to changes in Greek building regulations, leading to project redesigns. Significant investments have also been made in infrastructure and building installations, with a total CAPEX of €644 million by Q1 2025. Of this, €196 million has been allocated to infrastructure projects like the underground Poseidon Avenue crossing, while €449 million pertains to building constructions, including Experience Park, Experience Center (Hangar C), and buildings for large retailers. Meanwhile, emblematic projects such as Riviera Tower, The Cove Residences, Little Athens, the Sports Center, and the Metropolitan Park are in full progress. Finally, Lamda Development maintains a strategy of avoiding bank borrowing, with its cash position already reaching €650 million, sufficient for current and future projects. While discussions about borrowing may occur for specific projects like shopping centers, the company currently relies mainly on robust cash flows from property presales.