Scenario A: €1,000,000 in One Premium Asset

Net yield: 3.5%
Annual net income: €35,000

Stress Test 1 – 6 Months Vacancy

Income loss: €17,500

New annual income: €17,500
Effective yield: 1.75%

A single vacancy cuts income in half.

Stress Test 2 – 15% Market Correction

New value: €850,000

Portfolio impact: -€150,000

If liquidity is needed at that moment,
the loss becomes permanent.

Conclusion

High concentration risk.
Low flexibility.
Zero diversification.

Scenario B: Four €250,000 Assets

Net yield: 4.8%
Annual net income: ~€48,000

Stress Test 1 – One Unit Vacant for 6 Months

Income loss: ~€6,000

New annual income: €42,000
Effective yield: 4.2%

The system absorbs the shock.

Stress Test 2 – 15% Market Correction

New portfolio value: €850,000

Same percentage decline —
but you can sell one asset
and keep the rest.

Flexibility reduces risk.

Scenario C: Hybrid Model (Income + Development)

€600,000 in income-producing assets (5%)
€400,000 in a development project

Income side: €30,000 annually

Stress Test 1 – Market Freeze for 12 Months

Development exit delays.
Income continues.

Cash flow stabilizes the structure.

Stress Test 2 – 10% Price Compression in Development

Margins shrink.
They do not disappear — if structured properly.

As analyzed in our article
“Build-to-Sell vs Build-to-Hold: Which Model Is Truly Safer?”,
resilience depends on margin strength — not optimism.

Third Stress: Interest Rates + Taxation

If 40% leverage is used
and rates increase by 1.5%:

Net cash flow may drop 20–30%.

If effective taxation rises by 3–5 points:

Net yield compresses immediately.

As discussed in
“Why Net Yield Is the Only Number That Matters”,
headline returns mean nothing without tax and structure analysis.

Which Model Survives Best?

One Asset Model
Vacancy Shock: Weak
15% Market Drop: Vulnerable
Liquidity: Low
Overall Resilience: Fragile

Four Assets Model
Vacancy Shock: Moderate
15% Market Drop: Manageable
Liquidity: Good
Overall Resilience: Balanced

Hybrid Model (Income + Development)
Vacancy Shock: Strong
15% Market Drop: Controlled
Liquidity: High
Overall Resilience: Most Resilient

The Real Question

It is not:

Where can I maximize returns?

It is:

Which structure survives the downside?

Aggressive investing is not reckless investing.

It is downside planning.

How Would a Disciplined Investor Allocate €1,000,000?

A conservative-aggressive model might look like:

• 50% income-producing assets

• 30% value-add or development

• 20% liquidity reserve

This reduces:

✔ Concentration risk
✔ Forced-sale risk
✔ Tax compression
✔ Timing dependency

The Role of Poli Real Estate

At Poli Real Estate, capital allocation begins with:

• Stress testing

• Downside modeling

• Tax structure analysis

• Liquidity planning

• Exit strategy design

Because markets do not rise forever.

But well-designed structures endure.

Conclusion

€1,000,000 without structure is exposure.

€1,000,000 with allocation, stress testing, and liquidity planning becomes durable wealth.

The difference is not the property.

It is the architecture of the capital.

Considering allocating significant capital in Greek real estate?

Complete our Investment Strategy Form in button below and let’s design a structure that survives both growth and correction.