Feasibility Study in Patras, Greece

Savills Hellas has been instructed from MALCO HELLAS to conduct a feasibility study of a new proposed commercial development in Gomosto area, close to Patras in Peloponnese.  The site of this new development covered a total area of c. 277 stremma (68.5 acres) and was located c. 25 km from Patras, 6.5 km for the sea, 12 km from Araxos Internation Airport and 13.5 km from Patras Industrial Zone.  The wider area currently concentrates agricultural uses, though, the proposed construction of the new Ionian Odos highway (part of “West Axis” connecting North-West to South-West Greece) is expected to greatly facilitate accessibility and enhance the area’s character.

The ultimate outcome of this study was to assess the viability of the proposed development.  This assessment was accomplished through the achievement of a number of key objectives, such as the establishment of the catchment areas, the collection of appropriate market data through inspections, the analysis of all the collected data by using a sophisticated in-house model and, finally, the proposal of development’s size, mixture of uses/tenants and expected economic results.

Savills Role:

For the purposes of the feasibility study, Savills made an extensive research by visiting the most important cities (in terms of commercial activity) of West Greece Periphery, namely Patras, Pyrgos, Aegio, Nafpaktos and Messolonghi.  The majority of local tenants were recorded in terms of location, size and type/sector in order to analyse each local market independently.  Additionally, the supply and demand levels, market values/rents and trends in each market were recorded during our inspections but also from meetings and discussions with local stakeholders (agents, developers, engineers etc.).

All the above data were supported by demographic and economic data (on local, national and European level) collected by well-known public and private sources (Hellenic Statistical Authority - EL.STAT., Experian, Oxford Economics etc.).

The analysis of all the data collected provided very interesting results which were then carefully evaluated so that reasonable and well-established decisions and proposals to the client could be supported.  These proposals referred to the viable size of the development, the development concepts, the mixture of commercial uses and tenants, the reasonable rental levels and the potential economic results.