Investment Opportunities in Greek Real Estate
The Bank of Greece has identified various property categories that offer promising investment opportunities in the Greek real estate market. According to the central bank’s recent report on monetary policy, certain sectors are expected to yield significant returns in the coming years.
Promising Sectors
Among the highlighted sectors are logistics, commercial warehouses near Athens and Thessaloniki, and housing for specific demographics such as students and retirees. These areas are projected to see substantial growth and capital gains in the future.
Additionally, there is optimism surrounding investments in hotels, high-quality hospitality services, bioclimatic offices, and data centers. These sectors are expected to offer attractive returns for investors.
Market Trends
According to a market survey conducted by the Bank of Greece, high-end offices in key commercial areas of Athens had minimum yields ranging from 5.5% to 6.7% in the second half of 2023. Similarly, high-end shops in these areas had minimum yields between 5.2% and 6.1%. In Thessaloniki, the estimated yields were even higher, ranging from 6.5% onwards.
Commercial Real Estate Market Overview
According to data released by the Bank of Greece, the prices of high-end offices and shops have seen a steady increase in the second half of 2023. The prices of high-end offices went up by 2.1% compared to six months prior, while high-end shops saw a 2.4% increase.
Regional Variances
In the capital city of Athens, the growth rates were even higher, with offices and high-end retail experiencing a 2.9% and 3.4% increase respectively. These positive trends were also reflected at a national level, with office and shop rents of all categories increasing by 1.5% and 1.1%.
Construction Activity
The central bank also reported a positive change in construction activity for commercial real estate at a country level in 2023 and the first two months of 2024. New office and retail licenses saw a significant increase of 6.5% and 68.3% year-on-year in January-February 2024, while hotel licenses decreased by 13%.
