With an investment of 300 million euros, it is expected to be completed in 2022. office marketas institutional investors continue to position themselves strategically in this real estate category, believing that it has significant prospects for future capital appreciation. According to the latest analysis by Proprius, the real estate consultancy and representative of Cushman & Wakefield in the Greek market, investment activity in the office market is expected to be 30% higher this year than in 2021. At the same time, investment plans are on the way to implementation for the development of 140,000 sq.m. new office buildings, for which there are already pre-lease agreements for 18% of the respective areas.

According to Proprius, around 50 million euros were invested in the acquisition of new office buildings in the third quarter of this year. Among other things, the office building at 59-61 Akademia Street was sold for 9.5 million euros. The buyer was the Competition Commission, and the seller was the Bank of Greece.

Accordingly, the investment fund Dromeus Capital proceeded to acquire a building at 12 km of the Athens-Lamia highway for 11.5 million euros. This is the building of the former EKEP (European Exhibition and Promotion Center) in the Metamorfosi area, with a superstructure of about 14,868 sq.m.

The goal is to transform the property into a state of the art bioclimatic office building. Another deal that took place in the third quarter involved the sale of an office building by Hellenic Properties to Everty. This is the Art1 building on Artemisos Street in Marousi. Everty Group is the real estate division of YNV Group. The latter began operations in 2010 through Tek Experts, an international scheme for providing highly specialized technical services to some of the largest IT companies.

What deals stood out this year?

At the same time, 15 lease agreements for 20,000 sq.m. were recorded from July to September. offices. Already at the end of the nine months of this year, office space with a total area of ​​53,000 sq.m was rented out, the size of which is approaching almost the level of the whole of 2021, which is a sign of increased mobility to the store.

Among the most important transactions is a PWC lease agreement for a new office complex on Kifissia Street, which is being developed by Dimand Real Estate. This is a property with a total area of ​​11,000 sq.m., the construction of which has already begun. In his analysis, Proprius notes that the greatest activity falls on the northern outskirts and especially around the L. Kifisias axis.

Rent

As for the rent, it has increased by about 10%, but in recent months has stabilized at 25 euros/sq.m./month for modern properties with green elements. Countervailing pressure on rental prices is expected throughout 2023, according to Proprius, as on the one hand, new office buildings under construction enter the market, which will increase supply, and on the other hand, a high inflationary environment that works in favor of further price increases. . . At the same time, of course, even with the increase in new office supplies, the general stock remains relatively poor quality due to lack of investment over the past decade.