Greece’s Commercial Real Estate Market is Booming

The commercial real estate market in Greece is exhibiting a steady upward trend, with projections indicating continued growth for the next five years. The majority of investments in the Greek market are concentrated in office buildings and tourist properties.

Corina Saias, Managing Director of Premier Realty, highlighted that the commercial real estate market in Greece – encompassing offices, shops, hotels, and logistics – is projected to grow at an annual rate of 0.46% from 2024 to 2029, with most investments focusing on office buildings and tourism properties.

Citing data from Spitogatos, Saias revealed significant price increases since 2019. Office prices per square meter have surged by 47.3% in central Athens, 40.6% in the eastern suburbs, 49.9% in the southern suburbs, and 33.3% in western Athens.

Demand for energy-efficient office buildings in prime locations remains robust, while the remaining office spaces may experience a decline in the coming years. Prices for warehouses and storage facilities have also seen substantial growth: 45.7% in central Athens, 52% in the eastern suburbs, 39.3% in the southern suburbs, and 28.4% in western Athens.

From 2019 to 2024, prices per square meter for commercial properties have risen from 8 to 10.4 euros in central Athens, from €5 to €7.7 in the eastern suburbs, from €7.8 to €10.7 in the southern suburbs, and from €5.4 to €7.6 in western Athens.

Saias also pointed out two emerging trends in the Greek commercial real estate market: The first is the shift towards smart buildings, which utilize IoT and automated technologies to control systems like lighting, security, and HVAC. The global smart building market was valued at $108 billion in 2023.

The second trend is the rise of mixed-use developments, combining residential, retail, office spaces, and entertainment like cinemas. These projects are gaining popularity due to their diverse tenant mix, steady cash flow, and ability to maintain low vacancy rates by offering housing at various price points while promoting sustainability.