Office space in Greece is in high demand
The Greek real estate market is showing good dynamics, especially in the commercial sector. According to statistics from the country’s Central Bank, office space last year increased in price by 1.8%. Moreover, the rise in price affected primarily the elite objects.
Such premises were most in-demand in Athens. Here, the office property rose in price by 4.5%, in Thessaloniki the increase was 0.4%. As for the rest of the regions of the country, the value of the premises decreased by 1.2%.
A significant increase in the price of luxury commercial real estate analysts noticed closer to the end of last year. In Athens and its surroundings in the second half of 2021, the objects rose in price by 2.3%. In the rest of Greece, office prices began to fall.
As for rental rates, there is an increase throughout the country. On average, the rent of office space has risen by 3.7%, in Athens – by 2.3%, most of all rent has increased in Thessaloniki – by 5.5% and in other regions of the country – by 5%.
It should be noted that this year in Greece there has been a noticeable increase in demand for rental stores. The greatest interest is observed for facilities in popular locations. In the first half of 2022, a number of companies opened new stores. We are talking about the sector of jewelry, sporting goods, and luxury goods. Objects opened in different regions of the country. For example, Sephora expanded its network in Greece with a new outlet in Mykonos, sports company Buzz got another location in Piraeus and Zakcret opened a store in Ioannina. In addition, the Carrefour retail chain has re-emerged in the country. The first five stores are already operating, and the company plans to open seven more outlets.
According to experts, the increase in demand for rental stores is due to the limited number of proposals. The shortage of facilities is particularly noticeable in popular areas where there is a large flow of customers. As a result, companies are looking for options in other locations.
In addition, rental rates in Greece, although it has increased, remain at an affordable level. Before the crisis in 2010, prices in this segment were inflated, but now the market is developing quite steadily.
Renting a square meter of a store on one of the popular streets of Athens will cost 270 euros. A year ago the figure was 250 euros. In Kifissia, the cost of retail space is in the range of 110 euros per square meter. The lowest rate in Kolonaki is 95 euros per square meter.
In general, the commercial real estate market in Greece is growing, due to increased demand not only from local investors but also from foreign investors.