ULI Greece & Cyprus held its Annual Conference on 28th May 2024. The event was attended by over 120 professionals from across the Greek real estate industry and abroad, including investors; financiers; lawyers; architects; valuers; and real estate consultants.

The conference was centered around the theme ‘From Boomers to Gen Z: How is Real Estate Responding to Demographic Trends?’ Several experts from various fields provided valuable market insights, highlighting how demographic shifts are influencing real estate trends. They explored how different generations are shaping the market, from the preferences of Baby Boomers to the emerging needs of Gen Z. The discussions also covered how the principles of renew, reuse, and rebuild are being adopted to cater to the evolving demands of these diverse age groups, addressing the challenges posed by a changing global economy.

Konstantinos Santikos, Chair ULI Greece & Cyprus, Managing Director, Santikos Collection, and conference moderator opened proceedings.

Paul Cheshire, Professor of Economic Geography, Programme Director, LSE London School of Economics, opened the conference with an enlightening Keynote presentation, touching on many aspects of demographics such as the population of metropolitan areas, income, and age groups. The presentation titled ‘Understanding of the Issue / Trends & Implications,’ highlighted that:

“The main drivers of real estate prices are economic and not demographic, with income growth, affected by agglomeration economies, and not population growth, leading to higher prices and demand for more space.”

The keynote was succeeded by a presentation titled ‘Local Demographics: The Urban Challenges’ by Fay Makantasi, Research Director, diaNEOsis. Fay delivered an informative presentation on local demographics, presenting the results of research conducted by diaNEOsis:

“The demographic crisis in Greece requires holistic policies that will include not only financial but also social protection of families, and measures that will support motherhood, family life and life- work balance.”

A panel discussion titled ‘Relevance of Trends on Living Sectors,’ followed with panelists including Adamantia Phoca, Chair of RICS Board, Greece; Dr. Evangelia Crysikou, RIBA, Associate Professor, the Bartlett Real Estate Institute UCL, National Accessibility Authority of Greece, ULI Life Sciences and Healthcare Council Leadership Committee Member, Vice-President of the Urban Public Health Section, EUPHA; Fay Makantasi, Research Director, diaNEOsis, and was moderated by Ioannis Orfanos, Partner, Arbitrage Real Estate and member of the ULI Greece & Cyprus Executive Committee. The discussants focused on how different generations’ unique preferences and needs are reshaping the living sector landscape.

Key takeaways: population demographics are changing and especially in southern Europe. None of us is getting any younger but, more of us are living longer. We are facing a global imbalance as the number of people of working age shrinks, while the number of those that have traditionally been their dependents grows. The shift to a ‘greyer’ population will be strongest in eastern and southern Europe, also in Greece. Flexible and adaptive housing solutions are therefore important. Developers and investors need to understand the evolving preferences not only of the younger but more importantly of the more senior generations.

Generation Z: a moving generation that seeks experiences and remains flexible when it comes to its housing needs, preferring renting to buying, driven also by the lack of affordability in certain markets.

More senior groups: dissimilar needs depending on their age groups and health care requirements. They prefer walkable urban environments with plenty of outdoor areas and communal spaces that do not isolate them but promote social interaction and make them feel more integrated into the community. The objective is to extend their healthy living years.

Housing affordability remains a critical issue, especially for younger generations. Co-living and build-to-rent schemes could partially address the issue. In Greece, a novel approach to vacant public estates could also assist in this direction. In principle, this is a multifaceted challenge that needs a coordinated approach from both regulators and private investors. The societal pressure will continue to increase if this issue is not dealt effectively in the short- to medium-term.

Following a short break Will Johnston, Founder of the MicroLife Institute, Inc., and Konstantinos Papadopoulos, Resi Company, and member of the ULI Greece & Cyprus Executive Committee, engaged in a fireside chat during the ‘Case Studies: New Household Dynamics’ session about MicroLife’s Cottages project in Atlanta, Georgia in the US. In Will’s words:

“The Cottages development project addresses affordability through densification,” as MicroLife built seven micro-homes on a plot where typically a one single-family home is built. For this to be achieved, there was a need for stakeholder alignment ranging from the municipality to planning authorities to be able to implement meaningful changes in the planning rules and affect positive impact.”

The fireside chat followed a short video presentation of the Cottages project where the new homeowners talk about their experience and feelings of owning one of these homes and the importance of their micro-community. The new owners represented various demographic and social backgrounds, from a PhD student to a senior individual previously living in their trailer.

Key takeaways: as Will mentioned, “we asked and they listened,” placing a strong emphasis on starting the dialogue and education process with relevant parties to be able to influence change. Municipalities and planning authority institutions must be open to the discussion and listen to business models and must have the authority to influence certain planning improvements when it is for the benefit of all.

Affordability even without government subsidies: MicroLife showed that even with no financial help from any government body, affordability can be achieved through a redesign of the planning system and an out-of-the-box mentality in home design. Affordability through densification can take us a long way.

It is not one-size fits-all: the Cottages project was an excellent step to affordability in Atlanta, Georgia. Even though this does not mean that the exact same project would work everywhere, there are many other similar solutions that can work, such as micro-apartments, co-living projects, and many others, depending on the demographics, dynamic and needs of every market. The key point is designing affordable homes that fit the market and get the discussion going towards more affordable living.

The case studies session continued with an insightful presentation led by Thibault Weston Smith, co-founder of Crayon Partners.

Key takeaways: the past decade has seen significant transformation in real estate, driven by urbanization, sustainability, digitization, and increased compliance. Notably, urbanization will add 1.9 billion people by 2050, while sustainability efforts focus on retrofitting and energy efficiency.

Digitization has resulted in high smartphone penetration, and demographic shifts are marked by an aging population. The number of real estate sectors has expanded from 8 to 27, reflecting diverse housing needs and growing investor interest, particularly in the ‘Living’ sector. This sector, with rental products at its core, has seen increased focus from investors, alongside other top sectors like industrial, office, retail, and hospitality. Innovation through PropTech is redefining the real estate landscape, with Europe hosting over 9,000 PropTech startups. The PropTech VC market raised €3bn last year, creating significant opportunities in PropCo funding and technology efficiency, potentially boosting net operating income by 12-24%.

Thibault Weston Smith also highlighted the emerging ‘rent-to-own’ model, a hybrid between renting and homeownership. This model allows individuals to enter a rental agreement with the option to purchase their home at the end of the contract, addressing the affordability challenges faced by younger generations in Europe. By paying above-market rent, tenants gain the future option to buy, bridging the gap between rental and ownership. This concept is particularly relevant in urban centers like Athens, where younger populations are often priced out of homeownership. As global trends shape local markets, this innovative solution offers a pathway to homeownership while alleviating affordability issues. The future of real estate looks bright, driven by innovation, sustainability, and new investment models. Let us embrace these changes and build a better future together!

The panel ‘Capital Markets: Investing in New Housing’ was the last session of the conference. The panelists included Konstantinos Sotiropoulos, Senior Director, Investment & Development Central Europe, Greystar, Pavlos Gennimatas, Managing Director, Hines Europe. Eri Mitsostergiou, Principal, COO Greece, Avison Young, and member of the ULI Greece & Cyprus Executive Committee moderated the discussion.

The main conclusion was that urbanisation, increased demand for rental properties, and the need for improved housing and services are driving the growth of the build-to-rent sector in Europe. This sector caters to various demographic groups, including students, seniors, and families, driven by both lifestyle choices and affordability challenges. Professional developers are addressing this demand by offering products tailored to residents’ needs, featuring amenities, and being operated professionally. This approach enhances residents’ quality of life and creates value for investors through stable income streams and high occupancy rates. By closely collaborating with public sector entities and planning authorities, specialized developers aim to address the housing supply issue. Collaborating with communities and local stakeholders, they strive to achieve a positive social impact, contributing to broader housing solutions.

The conference was generously sponsored by:

Gold Sponsors: Costa Navarino Residences and Hines

Bronze Sponsors: Colliers, Cushman & Wakefield – Proprius, Grivalia Management R.E.D.S and Santikos Collection.

Our mission and events, as well as our Annual Conference, are generously supported by our Annual Partners:

Gold Partner: 8G Capital Partners

Silver Partner: Anicon

Bronze Partners: Alpha Bank, Arbitrage Real Estate, Danos, Enterprise Greece, OTE Estates

Supporters: AVAG, H.V.I., RICS, SBC

Media Partner: RED