An IMGW News Report
How an Old Greek Airport is Transforming into an €8 Billion Real Estate Venture
“Expected to boost Greece’s GDP by 2.5%, Ellinikon aims for carbon neutrality and strong foreign investment”
The largest purpose-built smart city in Europe is under construction just 20 minutes from Athens along the scenic Athenian Riviera coastline. This sustainable “15-minute city” will house Greece’s first skyscraper, a significant retail and leisure complex, and Europe’s largest coastal park, doubling Athens’ green space. Upon completion, it will contribute nearly 2.5% to Greece’s GDP, welcoming one million international visitors annually and generating €14 billion in additional revenue.
The Ellinikon, managed by Lamda Development, is being developed on the former site of Athens’ international airport, relocated in 2001. Its original runway will be transformed into a landscaped park, while its iconic Eero Saarinen-designed terminal will be renovated as an exhibition venue. Lamda Development plans to introduce The Riviera Galleria within The Ellinikon, featuring over 300 shops, dining establishments, and entertainment venues.
The project, which commenced in 2013 and is scheduled for completion in 2026, is expected to generate 80,000 jobs and more than €10 billion in tax revenue for Greece by 2037.
With the Riviera Tower—set to be Greece’s tallest building and its first skyscraper—already sold out, attention now turns to “Little Athens,” a residential development comprising five complexes with homes offering up to five bedrooms. This self-contained city will feature residential, dining, educational, and retail amenities within a 15-minute commute. Residents will cycle, walk, or use public transport rather than relying on cars, although all residences will include parking. The area is well served by an extensive metro network, connecting residents to the city centre in just eight minutes.
The development boasts extensive beachfront access, an urban park (incorporating the original runway), cultural venues, and facilities for individuals with disabilities. Tourists can scan a QR code for a self-guided cultural tour, exploring numerous monuments and historical sites within the park. The marina within the development previously hosted the sailing events during a major global sports competition.
Sustainability is central, with plans for carbon neutrality within 40 years. The park will feature over 31,000 trees and a million indigenous plants. The Riviera Tower has pre-certification for LEED Gold, and advanced technologies will monitor waste, energy, and water usage. Historical buildings and the former runway will be preserved and repurposed, maintaining the site’s heritage.
Greece’s Property Market Highlights
Greek house prices continue to accelerate due to strong foreign demand, growing residential construction, and economic growth. Urban house prices rose by 10.76% year-on-year in Q1 2024, marking the tenth consecutive quarter of double-digit growth. Despite this, Greek property prices remain lower than many European countries, attracting foreign investors, particularly through the Investment Migration Programme.
Athens saw a 9.35% increase in house prices in Q1 2024, while Thessaloniki experienced a 12.19% rise. In other cities, prices grew by 10.28%. Foreign investment reached €3 billion in 2023, with the Investment Migration Programme requirement doubling to €500,000 in popular areas but still attracting substantial interest. Greece’s economy is projected to grow by 2.2% in 2024, supporting continued strength in the property market.
Rental yields averaged 4.82% in Q1 2024, and mortgage interest rates rose to 4.33%. Despite high rates, new housing loans increased by 37.7% early this year. Residential construction is also rising, with building permits up by 8.1% in 2023, supported by tax relief measures.
