Greece’s Commercial Property Market Outlook 2025: Opportunities, Risks and Investor Insights
The second half of 2024 saw Greece’s commercial property market maintain strong investor interest, particularly in prime offices,...
According to the Bank of Greece’s Commercial Property Market Survey for H2 2024, investor sentiment towards prime commercial real estate remains positive. Hospitality, investment housing, and modern bioclimatic offices attracted significant capital inflows, with Real Estate Investment Companies (REICs) actively expanding and renewing their portfolios.
While construction activity grew by 3% overall, performance varied across sectors. New permits for offices fell by 14.5%, while retail permits rose by 8.3%. Hotel permits saw a sharp decline of 23%. Despite this, built volume for office projects soared by over 100%, reflecting renewed corporate demand for sustainable workspace.
Yields Remain Attractive Across Prime Assets
Athens Prime Offices: 5.6% – 6.7% yields, stable vs H1 2024
Thessaloniki Prime Offices: 6.5% – 7.4% yields
Athens High-Street Retail (Ermou St.): 5.2% – 6.0% yields
Thessaloniki Retail (Tsimiski St.): 5.7% – 6.5% yields
Prime Logistics in Attica: 6.9% – 7.8% yields
Vacancy rates remain low, with prime office vacancies at just 4.7% on Kifisias Avenue and 5.2% in Athens CBD. Retail vacancies were even lower at 2.5% in Athens’ Ermou Street and 4.3% in Thessaloniki’s Tsimiski Street.
Sector Outlook: Neutral for Offices, Positive for Hotels
For the first half of 2025, investor expectations are mixed:
Offices and retail: Neutral outlook, reflecting stable but cautious sentiment
Hospitality: Strong optimism, with luxury hotels and tourism-linked assets leading growth
Logistics & data centres: Seen as key growth drivers, alongside organised residential developments
Despite strong fundamentals, challenges persist. Rising construction costs, labour shortages, reduced household purchasing power, and legal uncertainties—such as the Council of State ruling against parts of the New Building Regulation—pose risks to development.
Key Opportunities for International Investors
Hospitality & Tourism Assets: Greece’s robust tourism sector underpins strong demand for luxury hotels and resorts.
Green & Bioclimatic Offices: Corporates are shifting towards sustainable, high-specification workspaces, boosting demand for modern office stock.
Prime Logistics & Data Centres: The rise of e-commerce and digitalisation highlights the strategic importance of logistics hubs and data infrastructure.
Organised Residential Housing: Growing demand for purpose-built housing opens opportunities for long-term investors.
Risks and Uncertainties
The survey highlights several external risks that could shape the market in the next two years:
Geopolitical instability and US political developments
High energy and construction material costs
Slower European economic growth
Potential downturn in global and domestic tourism
Greece’s commercial property market closed 2024 on solid footing, with resilient yields, low vacancy rates, and strong investor appetite in hospitality, logistics, and green office assets.
For international investors, the combination of stability, strategic location, and EU market access makes Greece an attractive long-term proposition. However, navigating regulatory challenges and macroeconomic headwinds will require careful due diligence and local expertise.
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