The ongoing speculation about Greece´s bankruptcy and its Eurozone membership creates a major uncertainty for the future of the economy and causes great instability in the investment markets. However, the long-awaited agreement with the private debtors (PSI) is expected to remove the fear of sovereign default. The uncertainty about the correct pricing of assets compounded with a lack of funding has put to a halt any potential transaction activity.

According to Savills, high risk has pushed achievable property yields at pre/Euro levels although evidence remains minimal. Nevertheless, under the current circumstances the country has come under pressure to improve the land registry and to explore the potential of redeveloping government owned assets. We understand that a number of projects in this front will come to light within 2012. This will lead to prime investment opportunities, especially in the area of leisure and tourism, through improved procedures of higher transparency and efficiency. Already, private and sovereign funds from Russia, Middle East and Israel are investigating various opportunities in the market.