Banks are waging war, according to Athens daily Ta Nea, in the centre of Athens, to secure the best possible real-estate spots. Location, of course matters, because where a bank is located is critical for its ability to serve as a "magnet" to attract consumers. Foreign banks are among those involved in the struggle to expand their networks, while Greek banks are also trying to position themselves in key spots.

This battle has intensified the already intense competition in the Greek banking sector, since at least May, making itself also felt in other sectors too.

Recently there have been two big purchases in the centre of Athens involving companies in the financial sector. The Insurance Fund of the Greek Army's Professional Corps (To Metohiko Tamio Stratou) was also involved in this competition for key real estate in Athens' centre. Four banks, several key construction companies, and real-estate businesses were involved.

The Insurance Fund of the Greek Army's Professional Corps started events rolling, when it moved to sell its multi-level apartment building in the centre of the city on Filellinon Street. The new owner of the building is Telesis Securities.

Recently, however, another agreement also took place involving the sale of a big stretch of real estate in the centre of Athens, on Amerikis Street. The Insurance Fund of the Greek Army's Professional Corps undertook the sale, with the Bank of Greece as the buyer. Construction is already underway at the site - the Insurance Fund of the Greek Army's Professional Corps is to own two floors. At the same time, however, Greek and foreign banks, who are involved in the Greek market or plan on becoming involved in it soon, are searching for real estate.

About a month ago, it was reported that American Express was in search of a site in the centre of Athens. The company had earlier submitted an application to the Bank of Greece for a licence to operate a new credit branch in the country, which would require a new office site. Citibank is planning on expanding its network of branches. Greek Bank is starting a second round of developing its presence in the country.

Nova Bank (made up of Interamerican and Portuguese BCP) is preparing to open its doors next month or in September, with, in the beginning, 48 branches in Athens, Peireus, Thessaloniki, followed by one in Iraklio in Crete.

Besides banks, Athens' centre exercises a major pull on businesses of all kinds, with many owners willing to pay "a little extra" for a good location. 56% of Attica's offices are found in the centre, as are 48% of its stores and 45% of its storage spaces. The centre houses half of the stores of all of Attica, with Syntagma, Omonia, Kolonaki, Stadiou and Panepistimiou streets being the most coveted regions.