Real estate presents an opportunity for the Avax construction group to strengthen its international presence , as it explores new ventures in the sector in Romania and Poland.
At the same time, it is believed to be very close to announcing a deal for luxury apartments in Nicosia, while in Greece, residential projects are increasingly becoming part of its business model.
Reports indicate that all scenarios for the development of land plots in Romania and Poland are being evaluated. The timeline calls for new projects in the next 1–2 years in both countries, where demand for housing is very strong.
It should be noted that demand in Poland is experiencing a particularly sharp surge, supported by a significant increase in mortgage lending. At the same time, the Romanian market shares common characteristics with that of Greece, due to structural problems and the large number of older homes that have not undergone necessary maintenance.
Apartments with a view in Nicosia
In Cyprus, Avax’s next move is at a more advanced stage. In Nicosia, a luxury complex is being developed, offering residents stunning views.
On the construction side, the project appears to be proceeding through a build-to-suit arrangement in collaboration with a local partner. According to initial estimates, the group will acquire approximately 60% of an investment valued at around €20 million for Avax.
The project recently announced by Avax in Thessaloniki will also be developed through this barter arrangement.
Specifically, the group and STANTA Single-Member Real Estate Management Company, owner of the “Kerameia Allatini” in Thessaloniki, have signed a Memorandum of Understanding to explore cooperation for the development of a portion of the property.
The collaboration involves the development of a residential tower with a total floor area of up to 29,800 sq. m., in a project that will be the first residential skyscraper in Greece’s second-largest city.
And social housing
While in Cyprus the focus is on those with “deep pockets,” in Athens Avax is exploring the opposite end of the market: affordable housing. In collaboration with the development company Dimand, affordable housing is being planned on the site of the former VELKA in Neo Faliro, near Piraeus Street.
Small investments, big upside
According to analysts, real estate still constitutes a small part of the group’s overall picture. While the group’s backlog stands at €3 billion, consisting of large-scale projects already in the execution phase, the real estate portfolio is valued at approximately €27 million.
However, the upside potential is significant.
As highlighted in a recent report by Piraeus Securities, the company’s visible pipeline of new projects for the coming period amounts to €14.5 billion, of which €560 million relates to real estate and marina projects.