High property prices, coupled with a fresh wave of price increases in the Greek market, are prompting real estate investment companies (REICs) to seek new investment opportunities abroad.
As the real estate upcycle in Greece appears to be nearing its end and construction costs are rising again, major institutional players are finding fewer investment options in the domestic market.
REICs including Trade Estates, Trastor and Prodea are considering new opportunities in Bulgaria, Cyprus, Italy and Spain. Romania is also coming onto the Greek sector’s radar, according to sources at major construction and property development companies.
“At the level land values have reached in Greece, many projects are unviable. You run the numbers and they don’t add up,” a senior REIC executive told Euro2day.gr
The latest wave of cost pressures has affected every country. However, experts point to two significant differences between the Greek market and markets abroad:
- First, property prices in countries such as Bulgaria and Romania have not risen at the same pace as in Greece.
- Second, the scope for future development of assets in markets such as Cyprus and Italy is often greater than in Greece.
Greece’s commercial property market is considered one of the shallowest in Europe, while data for the first nine months of 2026 show that offices accounted for half of transactions in the sector, according to a report by Avison Young Greece.
Retail parks and hotels in focus
Trade Estates has already included overseas expansion in its plans for retail parks, as has Prodea in the hospitality sector.
Dimitris Papoulis, chief executive of Trade Estates, spoke at a conference last week about the prospects for new deals in both Bulgaria and Cyprus.
“We completed a significant acquisition in Bulgaria two months ago. We intend to continue seeking investment opportunities in that country. At the same time, we are continually assessing Cyprus, a smaller market where we believe targeted moves could offer the potential for high returns,” he said.
In August, the REIC announced an agreement with Wyldes Ltd, a subsidiary of Fourlis Holdings S.A., to acquire for €49.35 million the indirect 50% stake it holds in Sofia South Ring Mall, one of Bulgaria’s largest shopping centres.
Meanwhile, Cyprus and Italy are now firmly part of Prodea’s growth plans.
In hospitality, it is targeting a portfolio of €1.2 billion over the next 3-5 years, up from €671 million today, through €350 million in new investment in the sector.
The company has a portfolio of 9 hotels in Greece, Cyprus and Italy.