Bloomberg: Europe's largest “smart city” is being built in Greece

On the southern coast of Athens, the long-awaited plan to transform the city's former airport into Europe's largest smart city has finally entered a dynamic path of implementation, Bloomberg, dedicated to the Hellinikon project, highlighted in a report.

He points out that after a decade of delay, Hellenicon's vision is finally becoming tangible. The Riviera Tower, soon to be Greece's first skyscraper, begins to rise. The iron frames of the apartments are machined. Bloomberg emphasized that when standing in the area, with a view of Saronicos on one side and the tower on the other, one can already imagine the future city, which will enjoy open spaces, sustainable energy sources, and abundant green spaces, which is what Athens lacks.

“There was a justified mistrust” in the early days of the project, Odyssias Athanasiou, one of the leaders of Lamda Development, who is leading the project, told the agency.

Spanning more than 6,200 acres a 20-minute drive from the center of the capital, Elínico notes, it will transform both the coastline and the country. These are the type of projects typically undertaken in China or the United Arab Emirates, a sign of Greece's recovery after the debt crisis, but also a sign of subsequent investor enthusiasm, the report said. The project is expected to add 2.5 percentage points to Greece's GDP, create up to 80,000 new jobs and generate more than 10 billion euros in tax revenue after its completion in 2037. It is also expected to attract an additional 1 million tourists annually, who Be able to choose between the Mandarin Oriental hotel and all-in-one casino resort that suits you.

Greece's tourism sector has rebounded since the Covid era, receiving 32 million visitors last year and on track to achieve a record number of visitors in 2024, Bloomberg notes.

For those looking to reside permanently in the area, there are 243 residential units already for sale and 140 units already reserved. Apartments, beach villas and apartments in Riviera Tower sold first, and Lambda announced earlier this month that total property sales revenue reached €641 million in the year to March. The majority of buyers were Greeks, and the city is expected to accommodate up to 20,000 people in about 10,000 homes over the next 13 years.

Based on the urban planning concept, Hellinikon residents will be able to reach schools, parks, offices, shops and even the beach in less than a quarter of an hour. Waste, water and energy services monitoring programs will be available throughout the complex. “It is a smart city from beginning to end,” says Mr. Athanasiou.

The report indicates that the process of launching the Hellinicon project was not smooth. When Lambda bought the land in 2014, parts of it were filled with the rubble of the former airport — including abandoned planes — while other parts housed refugees and illegal immigrants. The beach was littered with abandoned night entertainment establishments and sports facilities. Delays in the permitting process were another hurdle, and the fact that Greece was effectively bankrupt when the project was proposed made it unlikely that the project would come to fruition.

“We had the construction sector in Greece at its lowest levels for the last 10 years, due to the crisis,” explains the Lamda CEO. “People have left the country and construction companies are not as strong as before. The increasing cost of construction due to the energy crisis after the events in Ukraine has added to the obstacles.”

workforce

While those challenges have subsided, Lambda has faced — and continues to face — labor shortages, Bloomberg reports. About 7,000 workers will be needed when construction of the Elliniko shopping center begins next year. Lambda currently has about 2,000 employees and is in advanced negotiations with contractors to bring in construction workers from other countries.

However, Athanasiou described the country's “lack of credibility” as a bigger challenge for the company. Before he started, “he had before him a bankrupt country, a huge project even by European standards, let alone Greece, and a company that had never undertaken such a project before.”

However, these obstacles gradually fell by the wayside as the new city became a reality.

By the end of the summer, seven new residential buildings will be visible from the beach, along with the skyscraper being built.

“Until Christmas 2026, we want residents to stay in their homes,” Athanasiou said.

As the Greek economy recovers from its decade-long crisis, there is also renewed interest from investors. As Bloomberg points out, Greece received investment grade status from two of the three major U.S. rating agencies last year, and investors flocked to the Athens Stock Exchange during a successful initial public offering by Athens International Airport, as well as stock sales by major companies. Banks of the country.

“Our strategic goal is to diversify investment assets, shopping centers and marinas,” notes Aude. The company is trying to attract potential investors from the UK and US to the Hellinikon moorings and is waiting for the right moment to launch the IPO for its shopping centres.

Profitability

There are also good reasons to believe Elliniko will be profitable from now on. With the purchase of the site from the Greek state for €915 million in 2014, Lamda returned to the positive side of the project in 2023, and homes overlooking the beach are now selling for up to €15,000 per square metre. “There is tremendous hidden value” in the company's results, Mr. Athanasiou says. Offers for plots of land surrounding the shopping center and offices also exceeded 2,000 euros per square meter. He pointed out that “this value is equivalent to three times the value officially recorded in our portfolio.”

Bloomberg concludes that optimism, in short, is high. Concerned that tourists flocking to Athens may be more interested in the ancient city's historic landmarks than its ultra-modern facilities, Lambda's CEO is not concerned.

“Is there any reason why someone visiting Elliniko would decide not to go see the Acropolis or Sounio?” Mr. Athanasiou concludes his speech. At the same time, “is there a possibility that he would hear about a place nearby with the tallest buildings and a resort with casinos and luxury facilities and choose to stay only on the Acropolis?”