Construction Investments in Greece: The Land Ownership Model

Construction Investments in Greece: The Investor Retains Land Ownership

Real estate development investments do not necessarily start by handing over funds to a construction company. AILIT Group offers a model where the investor personally purchases the chosen land and registers it in their own name. Ownership remains with the investor, and further cooperation with the company is formalized through an antiparochi agreement.

How the Investment Model Works

Before purchasing land, a comprehensive project preparation is conducted, including:

• Searching for a suitable plot of land.
• Legal and technical due diligence.
• Development of a preliminary architectural concept.
• Calculation of construction budget and expected sales value.
• Determination of the estimated project timeline and investor exit strategy.

After purchasing the land, the investor signs an antiparochi agreement with AILIT Group. The company handles design, obtaining building permits through the state e-Adeies system (en.mitos.gov.gr), contractor selection, construction, technical supervision, marketing, and sales of the finished property.

Instead of selling the land to a developer, the investor provides the plot for the project and receives a contractually defined share of the built property (e.g., 30% of the apartments or total building area). The exact distribution depends on the land value, building coefficient, location, and project budget.

What the Investor Receives

The main advantage of this model is that the land is registered directly to the investor from the very beginning. Upon completion of construction, the investor receives the contractually agreed-upon units and chooses their own strategy:

• Selling apartments after construction is finished.
• Retaining the property as long-term capital.
• Leasing the units.
• A combined approach: selling part of the units while keeping others for regular income.

Profitability Assessment

In certain projects, the estimated total return on invested capital over a full cycle can approach 100%. This is an estimated scenario, not a guaranteed return. Such a result is possible when combining factors: advantageous land purchase, high building coefficient, controlled costs, and successful sales of finished apartments.

Actual results depend on market conditions, taxes, documentation timelines, and sales velocity. Therefore, before making a decision, the investor receives a financial model with three scenarios:

1. Conservative.
2. Base.
3. Optimistic.

Transparency and Support

AILIT Group offers specific projects with completed due diligence and architectural concepts. Terms of cooperation, share distribution, and responsibilities of the parties are secured in legal and notarial documents. The company supports the process at all stages: from land search to the handover of apartments to the investor.

Note: Each project is reviewed individually. Before investing, it is necessary to conduct an independent legal, technical, tax, and financial audit.