Rus News Journal

To earn on the sovereignty

the Greek authorities long refused
to expose on sale the islands, explaining that the sovereignty is not on sale.
however as a result were all - taki are compelled to start the program of mass privatisation. While on sale the rights to an island Corfu part are exposed, but is not excluded that it will be followed also by other objects.
scale privatisation

By estimations of the American government, total sale of a quarter of the Greek islands would bring at least 100 mlrd euro. Besides that the size of the Greek external debt makes 350 mlrd euro, island sale could cover to third of these expenses. While about such serious steps of speech does not go, however under the pressure of the world financial public the Greek authorities have started the scale program of privatisation. The program accepted by the Greek government is estimated in 50 mlrd euro, and by 2015 it is supposed to master about 40 % from this sum - 19 mlrd euro. Within the limits of this program participants of the market expect partial sale of islands and resort real estate. the great bulk assumed to land selling is the coastal sites optimum approaching for erection of hotels and other objects of a resort infrastructure. Besides it on the auctions large objects of an infrastructure in which number paid highways appear will be exposed, teleradiotsentry and etc. If the Greek government did not start land selling yet many infrastructural objects already unsuccessfully tried to privatise since 2000 - the president of the international agency of real estate Gordon Rock Stanislav Zingel speaks.

However while there is begun sale procedure only one unique allotment. In the beginning of March gathering of application forms for participation in the auctions on reception of the rights of possession by the ground area by the area of 48,6 hectares on the Greek island Corfu near to the well-known beach of Kassiopii has been declared. Thus it is a question not absolutely of sale, and long-term rent of the earth the next 100 years and precisely it is not defined, whether prolongation of the contract after the given term will be possible. Besides it there is begun preparation for sale teleradiotsentra. For the Russian investor the right of possession of object for 100 years is equivalent to its purchase. For example, in the Moscow market the earth was distributed all last years exclusively on the basis of the lease contract or the right of use, about any sale of speech did not go. Therefore domestic investors have got used to put shorter horizon of planning, than 49, and furthermore 100 years - the operating director " speaks; Century 21 West Evgenie Skomorovsky. However, as he said, such conditions can frighten off the western private investors or the same foreign investment funds. Besides, as analyst IK " marks; finam Anna Mishutina, islands can be rented for personal use is for today already enough widespread practice. naturally, the price it will be essential to vary depending on a great number of factors, first of all sites, the areas, presence of an infrastructure and etc. - the expert speaks. For comparison: a range of cost of the Greek islands exposed on sale by private owners, now very big - approximately from $50 thousand to $500 thousand for hectare.

investments with risk

Participants of the market remember examples when investors managed to earn decent means on so-called distressed markets. According to Stanislav Zingelja, most a vivid example of last years was the State of Florida. In world financial crisis of the price for real estate in Florida have fallen from peak values to 40-50 %, and on some categories, for example mortgaging real estate, falling of the prices was even more essential and reached 60-70 %. As a result in 2008-2009 mainly Near-Eastern and European businessmen began to buy up actively at coast not completed housing complexes of the ruined American builders, and business - structures from the USA have hammered together even own investment fund at a rate of $1 mlrd for acquisition at the the fallen in price property. Despite essential depreciation of real estate in Florida, rates of rent in crisis have on the average decreased only on 10-15 %, and it means that the indicator of rent profitableness, that is the relation of the income of tenancy to a current market project cost of real estate, has grown in three - five times that has given growth from 3-4 % annual to 9-15 %. In turn, operating investments into real estate the founder of a consulting portal indriksons. ru Igor Indriksons results Great Britain where in the end of 2009 - the beginning of 2010, in the very bottom an economic crisis, it was possible to get real estate with discount of 15-20 % as an example. Today these objects not only have returned to pre-crisis indicators, but also have exceeded pre-crisis level on the average on 10 % that allows to speak about investment profit at level of 30 % within three years - the expert explains.

the Greek market of real estate to the full now corresponds to concept distressed market - following the results of 2011 record-breaking low quantity of transaction here has been spent.

the earth thus not exposed earlier on sale is the most attractive active exposed on sale. Another matter that while realisation of the ground areas is carried out not on those conditions for which the investors who were standing up for the right of the absolute property hoped. the Greek government under the pressure of the public is ready to give is only right long-term rent. And on an example of the site realised to Corfu, it is visible that lease contract prolongation at all is not the obvious fact - Stanislav Zingel speaks. As he said, the most attractive type of the actives exposed on sale in the Greek market of real estate, the Greek hotels are is the real distressed market. The Greek tourist`s industry since autumn of 2011 has faced considerable reduction of a stream of tourists. In 2012 tourist`s stream reduction proceeds. For example, German tour operators ascertain more than 30 - percentage falling of demands for rest in Greece for coming nearer summer season. In the conditions of catastrophic falling of a gain many Greek hotels become bankrupts and carry over the Greek and West European banks. At a present situation banks have exposed on sale already some hundreds hotels with discount of 50-60 % from pre-crisis cost.

to seize the moment

According to Evgenie Skomorovsky, the Greek actives are most interesting to the Russian and Turkish investors. Russians are traditionally active in the Greek market of real estate. Moreover, Greece traditionally acts as one of the most desired directions for emigration and many representatives of large business in Russia have Greek passports - the expert speaks. In turn, Turkish investors are so active that some oppositional Greek politicians suggest even to enter the special law forbidding to Turks to buy up actives within the limits of privatisation. For example, the head of Turkish building company FIYARI Fikret Inan has declared the readiness to get, at least, three Greek islands for 20 million euro. However, the Greek authorities assure that to any country will not forbid to participate in privatisation. According to Anna Mishutinoj, demand for foreign real estate from Russians after essential procorfs in a sharp phase of crisis in the last some years are confidently restored. the various statistical data shows growth of number of transactions in the markets Southern and the Eastern Europe where the macroeconomic situation remains enough difficult that undoubtedly influences cost of inhabited and commercial real estate - the expert speaks. At the same time, as she said, it is necessary to note risky character of similar investments. Therefore the increase in number of similar transactions testifies more likely to growth of appetite of investors to risk, than about favourable investment model.

the Most important thing for distressed markets - to define the necessary moment for investments. According to Igor Indriksonsa while to invest in the Greek market early enough. at present all Greece has no interest from the point of view of investment appeal. If to look on pricing and not to trust the official statistics the real estate of Greece since 2008 already has fallen more than to 50 %. Besides, the real estate will continue to go down in price within three years and will decrease from today`s indicators still approximately on 30 % - the expert considers. Operating partner GDN Property of Anastas Rybochkina adheres to the same opinion. As she said, many interesting projects are exposed on sale with discount, but nevertheless to invest in this country still early because falling of the prices will proceed. Now, of course, it is possible to buy real estate more cheaply, but there is a risk of an exit from an euro zone and then it is possible to lose much: the local currency will depreciate at once in relation to euro. Therefore the best time to buy - if Greeks leave a zone of euro and will enter the currency - the expert considers.