The development of 237 serviced apartments, which will be sold as investment products to interested buyers, is progressing DKG Developmenta residential development company real estate. These are three separate projects which are being developed in Dafni (57 apartments), in Marina Zeas (64 apartments) and in Moschato (116 apartments) and will be sold, with the cooperation of the network of real estate offices Engel & Völkers, to interested investors who wish to have a return on their capital that is higher than the usual products offered on the market today, such as e.g. bonds, time deposits, etc.
The buildings will host serviced apartments, i.e. furnished and fully equipped residences in which hospitality services will also be provided. All properties will be utilized through short-term leases with the cooperation of specialized management companies, with the relevant income essentially constituting the return that the owner-investor will receive.
The pricing policy followed is also of interest. For example, in the Dafni building (Laurel Project), all apartments are available for a price of 100,000 euros each and guaranteed rent of 550 euros/month, which translates into an annual return of 6.6%. The properties range in size from 18 to 27 m2, which means that a total revenue of 5.7 million euros is expected to be collected from the sales. The complex is to be operated under short-term rental accommodation management company Raise Projects.
The specific property also offers retail spaces on the ground floor, where, among other things, a lease agreement has been signed with the company Sinsay. The other complex, in the Zeas marina, is of a more luxurious nature, with the result that the cost of the investment also varies. The complex will be branded Mediterranean and offer a yield ranging between 6.5% and 7.1%. A total of 64 apartments will be developed, with an area of 25 to 67 sq.m., while it is estimated that the sales will generate revenues of 24 million euros, i.e. the average sale price per property will reach 358,200 euros.
Regarding the project in Moschato, the orientation mainly concerns its leasing, e.g. to someone business which is interested in housing its workers there. For example, Teleperformance has gone ahead with such an agreement for a property that Dimand had developed in Agios Dionysios, Piraeus, and which was subsequently acquired by Premia Properties AEEAP.
As Engel & Volkers executives explain, the pre-sales process is progressing very satisfactorily and 50% of the apartments have already been allocated in Mediterranean. The buyers are both Greeks and foreigners, while it is worth emphasizing that none of the properties are offered for owner-occupancy, i.e. purely of an investment nature. DKG’s goal is to develop other relevant residential projects, not only in Athens, but also in Thessaloniki and other major cities of the country, judging that there is significant investment interest in the category of serviced apartments.
