REAL ESTATE

Investors are turning buildings into multi-purpose accommodation units in central Athens in a bid to get on top of sharply rising real estate prices. Hybrid, or multipurpose, hotels are becoming more popular in the Greek capital as the era of quick profits from short term property rentals is coming to an end.

The profile of foreign investors buying property in Greece has changed with a growing number of long term players taking the position of speculators. This indicates that the recovery of the country's property sector is picking up, attracting investors with a steady position in the market rather than those looking for a quick gain, who often artificially inflate prices.

Expectations are dropping among investors and real estate officials about the impact the government's recently announced incentives will have on the construction sector. Some in the business are even calling on the government to change the measures before they are voted on by lawmakers on the grounds that they will have little, or no impact, on building activity and are more trouble than they are worth.

The face of Piraeus Street, one of the busiest roads in Athens, is set to change. A series of property investments on the road, connecting the port of Piraeus with the city center, has been announced for the next two years from investors such as US Hines and Greece's Viohalco group, along with state bodies such as the Athens municipality.

The Greek real estate market is drawing strong interest from foreign players as the latest data from the Bank of Greece shows a 94.6 percent increase in capital inflows tied to property for the first half of the year.