Greece’s Commercial Real Estate Market on the Rise

The Greece commercial real estate market is thriving, with a focus on office buildings and tourist properties, promising growth for the next five years.

The Greece commercial real estate market is currently experiencing a notable and sustained upward trajectory, with projections indicating this trend will persist over the next five years. A significant portion of investments is being directed towards office buildings and properties catering to the tourism sector. According to recent analyses, the Greece commercial real estate sector—including offices, retail spaces, hotels, and logistics facilities—is anticipated to expand at an annual growth rate of approximately 0.46% from 2024 to 2029, with a pronounced emphasis on office and tourism-related investments.

Data from Spitogatos has unveiled substantial price escalations since 2019. In central Athens, office prices per square meter have skyrocketed by an astonishing 47.3%, while the eastern suburbs have witnessed a 40.6% increase, the southern suburbs a staggering 49.9%, and western Athens a respectable 33.3%. The demand for energy-efficient office buildings in prime locations remains robust, although it is anticipated that less desirable office spaces may face a downturn in the forthcoming years. Furthermore, prices for warehouses and storage facilities have also experienced remarkable 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, the price per square meter for commercial properties has escalated from €8 to €10.4 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. 

Two emerging trends are particularly noteworthy within the Greece commercial real estatelandscape. The first is the shift towards smart buildings, which leverage Internet of Things (IoT) and automated technologies to optimize systems such as lighting, security, and HVAC. The global smart building market was valued at an impressive $108 billion in 2023, underscoring the significance of this trend. The second trend is the burgeoning popularity of mixed-use developments, which seamlessly integrate residential, retail, office spaces, and entertainment venues such as cinemas. These projects are gaining traction due to their diverse tenant mix, consistent cash flow, and ability to maintain low vacancy rates by offering housing options across various price points, all while promoting sustainability.

The Greece commercial real estate market is not only thriving but also evolving, with innovative trends shaping its future. As investors and developers navigate this dynamic landscape, the interplay of economic factors, technological advancements, and consumer preferences will undoubtedly play a pivotal role in determining the trajectory of this sector.