According to a commercial real estate market survey conducted by the Danish consulting company BNB Paribas Real Estate for the first quarter, high-end green offices are attracting a lot of investment interest. In particular, rents and demand for prime office space with bioclimatic features followed an upward trend, with real estate investment companies (REITs) and foreign investors investing heavily. Indeed, significant transactions have taken place in the office real estate market over the past 18 months, such as the acquisition in February 2021 by the Brook Lane – Noval Property consortium of the Viohalco Group for €28.5 million of the company (formerly Kodak) 17. 1 hectare plot on the streets of Heimarras 10-12 and avenues Amarousiu – Shalandriu in Marousi. Under a joint scheme through Grid, work began in July on the development of a bioclimatic office complex, which will have a total built-up area of ​​over 50,000 sq.m. Another major investment this year includes the purchase by Prodea for 35 million euros of an office building owned by LP Ellinas. Also in Marousi, Trastor bought an office building with an area of ​​16,790 sq.m. up to about 27 million euros.

In the post-pandemic era, the company believes office space remains important to businesses, but at the same time, users are demanding higher standards, resulting in high demand for luxury real estate. However, supply remains below demand, which is only partly covered by current new investment, with the Athens office market posting higher margins and returns compared to other European markets, according to Danish company BNB Paribas.

Office profitability and rental value in the first quarter of the year showed better results compared to 2021. The former ranges from 6% to 6.5% for first-class premises, and the rent is around 26 euros per square meter from 12.5 euros. in 2015.

As for other business premises, shops are in demand, especially those with high technical characteristics or located in shopping centers. Asking rents remain stable, while vacant stores in high-end neighborhoods have declined, according to the real estate consultancy’s Q1 data. Despite the effects of the war and high inflation, the entry of new players into the Greek market or the return of old ones, such as the Carrefour supermarket chain, Polish retail groups Pepco, LPP-Sinsay and Turkish Vakko (clothes-shoes) are driving demand for retail space. The rental rate varies from 180 to 265 euros per sq.m. on Ermu street, from 50 to 90 euros in Kolonaki, from 70 to 130 euros in Glyfada and from 80 to 100 euros per sq.m. in Kifisia. In secondary commercial areas, the average rent is 22 euros versus 17 euros per sq.m. in 2015. Yields on high-demand commercial arteries remain stable, with the lowest, around 5.5% (note: rate of return is inversely proportional to demand), found at Ermou Street.