Positive Real Estate Market Expectations in Greece
The recent report by the Bank of Greece highlights certain categories of real estate that are expected to perform well in the next two years. Among these, logistics, professional warehouses near urban centers like Athens and Thessaloniki, and specialized residential properties (such as student housing and organized elderly housing) are seen as having significant potential for future growth and value appreciation.
Positive expectations also continue for the real estate market as a whole in Greece, with these specific sectors standing out as particularly promising for investors looking to capitalize on the country’s improving economic outlook.
High-End Real Estate Market in Greece
According to a recent market research report by the Hellenic Property Federation, during the second half of 2023, the minimum yields for high-end office spaces in the most commercial areas of Athens ranged between 5.5% and 6.7%, while the minimum yields for high-end retail stores ranged between 5.2% and 6.1%. The corresponding yields in Thessaloniki are estimated to be between 6.5% and 7.4% for offices and 5.6% and 6.5% for retail spaces.
Real Estate Market Trends in Greece
According to the indicators published by the Bank of Greece, during the second half of 2023, prices of high-spec office spaces increased by 2.1% compared to the previous semester, while prices of high-spec retail spaces increased by 2.4%.
In Athens, the corresponding growth rates for both offices and high-spec retail spaces were higher, reaching 2.9% and 3.4% respectively. Nationwide, increases were also recorded in rents for offices and retail spaces of all categories, by 1.5% and 1.1% respectively.
Economic Growth in the Real Estate Sector
According to the Central Bank, the construction activity for commercial properties in 2023 and the first two months of 2024 showed positive growth rates at a national level. Different categories of properties experienced varying speeds of growth, with the number of new permits for offices and stores increasing by 6.5% and 68.3% on an annual basis for the period of January-February 2024, while hotels decreased by 13%.
