The crucial role of real estate investments as a factor in economic growth and local development and the need for institutional interventions to attract foreign investors were highlighted by Mr. Yiannis Delikanakis, founding partner Southrock Asset ManagementSpeaking with Athens Riviera Summitin the thematic discussion “Real Estate Investments: Trend or Strategic Choice?”. The Summit was attended by government representatives, institutions and companies from Greece, Europe, the USA and the Middle East.
Highlighted Features of Mr. Delikanakis “Investment in real estate has a multiplier effect on growth and local economies. These are productive investments with a positive momentum in most sectors of the economy.” As he himself said, the precision of the approach can be achieved by increasing income through high value-added investments.
In his speech, Mr. Delikanakis mentioned that there is a widespread misunderstanding about the possibilities, prospects and costs of tourism investments in Greece and this concerns the urban planning framework. “There is a misconception that Mykonos does not have a strict urban planning framework, when based on the local ZOE, 65% of the island cannot be built, while on other islands like Ios or Tzia and Paros, the area in which construction is prohibited it’s only 20 or 30% of the island”he explained. He also argued that the problem does not lie in the tightening of the institutional framework, but in its implementation.
He continued by referring to the need for a pragmatic public sector approach to private investment: “For institutional investors to remain in Greece, a realistic treatment of private investments by the State is necessary, speeding up procedures and prioritizing those that do not request subsidies, tax incentives or environmental derogations”he said. He added that Southrock and its investors have invested 300 million of their own capital in Greece, with plans to invest even more, having confidence in the dynamics and potential of the Greek economy.
He concluded by saying that significant institutional interventions are needed to maintain growth dynamics and for foreign investors to remain in Greece in the long term: “It is necessary to understand that horizontal measures that aim to punish illegals, in Greece, end up punishing legal ones, creating at the same time a negative history of uncertainty for the country, with a negative impact on attracting investments”.