As part of our Smart Cities research, we have been documenting the expanding role of architecture, engineering, and construction (AEC) firms, commercial real estate (CRE) companies, and developers as key orchestrators of these initiatives.
The Ellinikon project in Greece provides a compelling example of this burgeoning ecosystem. The Ellinikon is set to become Europe’s largest urban redevelopment initiative, transforming the Athens’ former international airport into a green Smart City district on the Athens Riviera.
The project is not spearheaded by the municipal government but by Lamda Development. Although the government has provided coordination for this megaproject, it has not provided any financial backing.
Covering over six million square meters, the multibillion-euro project aims to set new global standards for Smart Cities.
We sat down with Manthos Papamatthaiou, Lamda Development’s business development director for Smart City and ICT, Dimos Panagiotis, business development senior manager, and Paraskevi Panagopoulou, business development associate, to learn more about the project and the organization’s Smart City expertise.
[The responses below are some of the highlights of the interview. The full interview is available here for subscribers to Worldwide Smart Sustainable Cities, States, and Spaces: AI, Cloud, and Edge Strategies.]
What is your vision for The Ellinikon project?
Our overarching goal, as outlined in The Smart Ellinikon Vision, is to create “a state of-the-art smart district that pioneers the future of home, work, and entertainment; utilizing technology to deliver sustainability and serve the people of tomorrow.” We are following an integrated approach where solutions merge seamlessly into daily life without causing disruption. These solutions are designed to be outcome-focused rather than technology-driven, ensuring that each bit of technology either adds value and enhances the experience of residents, tourists, and employees or serves our sustainability and environmental protection targets. As part of this initiative, we have already completed the technology master plan and are entering the build phase of digital infrastructure and smart use cases across various domains such as smart infrastructure, mobility, energy, and waste management.
At the heart of our project lies sustainability, guided by The Ellinikon Sustainable Development Strategy and Lamda Development’s ESG goals and commitments. This approach aligns with the expectations of future residents and visitors as well as EU regulations.
Which cities are you looking to for examples of best practice?
We’ve thoroughly studied all major Smart City initiatives worldwide, focusing on both the success stories and lessons learned. The 15-minute city idea from Paris, for instance, significantly influenced the masterplan developed by Foster + Partners. The location suits perfectly the “city within a city” concept, with the mountains behind, the sea in front, and excellent connectivity to downtown Athens. One takeaway from other Smart City projects is the importance of having the right internal skills to ensure seamless operations.
How did you build the business case and determine the ROI of integrating smart technologies into the urban redevelopment project?
To establish the business case, we cooperated with international consultants like Deloitte and AFRY and conducted a feasibility study to define the sizing, costing, and benefit of each solution. We leveraged a large pool of relevant data from comparable projects to shape a solid set of assumptions. The feasibility study successfully quantified both the direct and indirect benefits of building a Smart City. The indirect value was reflected as a tangible premium in the real estate value prices, attributed to the appeal of having a residence or a business located within a smart district. This value of living in one of the leading smart districts in Europe ends up with a very interesting figure that significantly supported our decision-making processes.
When did Lamda Development establish its Smart City team?
The department was established over three years ago, at the urban planning phase and prior to any construction works. We started by defining the principles and vision for Smart Ellinikon, and then moved on to the identification of opportunities. What began as just a high-level concept has now evolved into an ambitious, approved, large-scale project. We are currently refining the design and initiating the implementation of the city’s “digital layer.” Given the breadth of available solutions and the potential for value creation, it’s clear that investing in dedicated Smart City teams early on is a wise move for all large-scale developers.
The Ellinkion’s Smart City team is ambitious. The project represents both a major advance in urban planning and a testing ground for the latest innovations in Smart City technologies. By incorporating digital technologies across every layer of the development — from energy management and transportation to waste management — the initiative aims to set new global standards for Smart Cities.
As demonstrated by Lamda Development, the role of developers, AEC firms, and CRE companies is shifting within the urban innovation ecosystem. IDC has found that 40% of AEC and 50% of CRE companies have established dedicated technology and innovation departments — numbers that are set to increase significantly over the next two years. These organizations are also increasingly partnering with technology companies in arrangements such as preferred partners in support of urban innovation initiatives.
As exemplified by Papamatthaiou and his team, building in-house Smart City expertise is becoming more common among developers. These organizations should be seen as key players in the Smart City ecosystem.
We expect these companies to have a noticeably large presence at this November’s Barcelona Smart City Expo, which we will attend.
Further reading: IDC Government Insights: Worldwide Smart Sustainable Cities, States and Spaces: AI, Cloud and Edge Strategies