On the Greek capital’s coastline, a long-awaited project that will transform the city’s former airport into Europe’s largest smart city is in full swing, according to Bloomberg.
After a decade of delays, Hellinikon’s vision is taking shape. The construction of the Riviera Tower, which will soon be the first residential seaside skyscraper in Greece, has already begun. The skeletons of Cove Residences are taking shape. If one stands on the marina, with a view of the Saronic Sea on one side and the tower on the other, one can imagine the city of the future that will have open spaces, sustainable energy sources and abundant green spaces that Athens lacks today.
“There was justified mistrust” at the beginning of the project, Odysseas Athanasiou stated in the interview. Mr. Athanasiou is the CEO of Lamda Development, the company behind the development of this multidimensional project.
Transformation of the beach front
On an area of 6,200 acres and only 20 minutes from Athens by car, Elliniko will transform both the beach front and the country. It is the kind of project we usually see in China or the United Arab Emirates and is a symbol of Greece’s post-crisis renaissance and the subsequent great investment enthusiasm. Project developers estimate that it is set to add 2.5 units to Greece’s GDP, up to 80,000 new jobs and more than €10 billion in tax revenue after its completion.
It is also expected to attract an additional one million tourists a year, who will be able to choose for their stay, among others, a Mandarin Oriental hotel or an Integrated Resort Casino. The tourism sector in Greece has recovered from the Covid era, with 32 million visitors last year and record arrivals expected for 2024.
For those looking to settle in permanently, 243 homes have recently been made available for sale in the “Little Athens” neighborhood with 140 of them reserved by buyers. The Riviera Tower Apartments, Beach Villas and Cove Residences are sold out, while Lamda Development announced earlier this month that revenue from property sales in March reached €641 million. The majority of buyers were Greek, while the city is expected to host up to 20,000 people in around 10,000 homes over the next 13 years.
The concept of the “city of 15 minutes”
Taking advantage of the “15-minute city” concept, Ellinikos residents will have access to schools, parks, offices, shops, and even the beach in less than a quarter of an hour. Software systems that will oversee waste, water and energy services will be installed throughout the development. “It’s a smart city from end to end,” said Mr. Athanasiou, adding: “we like to call it ‘Zip Code Paradise’.”
The preparation for the implementation of the Hellinikon project was not easy. When Lamda Development bought the land in 2014, parts of it were filled with the ruins of the former airport – including derelict aircraft – while other parts housed refugees and migrants. The beach was lined with nightclubs and neglected sports facilities.
Delays
Delays in the permitting process worsened the situation, while the fact that Greece was effectively bankrupt when the project was proposed made it seem even more unlikely to get off the ground. “We had a construction sector in Greece that had reached its lowest level in a decade, due to the crisis,” explained Mr. Athanasiou. “People had left the country and construction companies were not as strong as in previous years. The increased cost of construction, due to the energy crisis, after the events in Ukraine, worsened the situation.”
Although these challenges were overcome, Lamda Development faced — and continues to face — labor shortages. Around 7,000 workers will be needed when construction work on the Hellinikon Shopping Center begins next year. Lamda Development currently employs around 2,000 people and is in advanced discussions with contractors to bring workers from other countries into the construction sector.
Despite this, Mr. Athanasiou described the “lack of credibility” as the biggest challenge the Company had to face. Before the Project began, the CEO emphasized that “there was a bankrupt country, a huge project even by European standards, let alone Greece, and a company that had never undertaken a project like this before.”
These obstacles, however, have gradually been overcome as the new city is now becoming a reality.
The new buildings
By the end of summer, seven new residential buildings will be visible from the waterfront, alongside the skyscraper under construction. By the end of the year, this skyscraper will have reached 100 meters, and the number of waterfront residential buildings, under development, will have increased to 15. By the end of 2025, a sports center with football fields, tennis courts and swimming pools will be open to the public. “By Christmas 2026,” said Mr. Athanasiou, “we want many of the residents to live in their homes.”
As the Greek economy recovers from the ten-year crisis, there is a rekindling of interest on the part of investors. The country received an investment grade rating from two of the three major rating agencies over the past year, and investors flocked to the Athens Stock Exchange following the successful initial public offering (IPO) of Athens International Airport and the sale of significant stakes in the country’s main banks.
Despite rising by almost 16% in 2023, Lamda Development’s share is around €7, which Mr. Athanasiou attributes to broader difficulties in the real estate market. “Our strategic objective is to diversify our portfolio holdings of assets in operation, namely malls and marinas,” said the CEO. The company has approached potential investors in the UK and US about its marinas and is waiting for the right moment to go public for its malls.
Profits
There is also reason to believe that Elliniko will be profitable from now on. The site was bought by Lamda Development from the Greek state for €915 million in 2014, and the Company returned to profitability in 2023 with beachfront homes now selling for €15,000 per square metre. “There is enormous value from residential developments that has not yet been seen” in the company’s results, argues Mr. Athanasiou. Offers for plots around the shopping center and offices have also exceeded €2,000 per square metre. “This price is almost three times their value on our books,” he noted.
Optimism, in short, is great. And as for the concern that tourists visiting Athens might be more interested in the ancient city’s historical sights than its ultra-modern amenities, the CEO of Lamda Development doesn’t seem concerned.
“Why should someone who visits the Acropolis or Sounio not visit the Hellinikon?” asks Mr. Athanasiou. Furthermore, “is there a chance that someone learns about an area, with the tallest buildings, with five skyscrapers, a casino-resort, and chooses to visit only the Acropolis?”
