The Greek office real estate market has entered a period of adaptation, despite the active phase of the pandemic, and has managed to demonstrate significant resilience.
In particular, according to the latest report from the stock exchange on the purchase of offices, overseen by certified real estate valuation company Geoaxis, in the first months of 2021, “despite the pandemic, the office lease term is extremely stable compared to a year ago. Moreover, on the main highways of Athens and in the center, there is a slight increase in the requested rent, on average by 1%. ”
In office buildings with parking spaces, the highest growth of 1.63% was recorded due to the rental of offices on Singru Avenue, as this year it amounted to 9.35 euros / sq.m. per month from 9.2 euros / sq.m. for the corresponding period last year. Accordingly, the average rent on Mesogeyon Avenue is 9.2 euros / sq.m. per month, an increase of 1%. On Kifissias Avenue the average rent is 10.82 euros per sq.m, which is slightly higher than last year (+ 0.84%), while on Vouliagmeni Avenue the average rent is 8.6 € / sq.m.
In the center of Athens, rents for offices located around Syntagma Square increased by 1.6%, while the average monthly rate today reaches 13.15 euros / sq.m against 12.95 euros / sq.m. a year ago. In Kolonaki, the cost is 17.8 euros / sq.m and increases annually by 1.3%.
According to Giannis Ksilas, CEO of Geoaxis, “Today the office market is characterized by three different categories. High-quality offices, practically regardless of location, are in very high demand, with rents that can reach over 20 EUR / sq.m per month and a yield of about 6.5%. While old or unrepaired offices may not be rented even for 5 euros / sq.m. in secondary locations in the center of Athens. Between these two poles there are old offices on the main roads, which are very reliable, with a rent of 10 euros / sq.m. and a yield of about 7.5% ”. According to him, “these different categories are expected to persist until the end of 2021, until the real economy begins to recover.”
However, as noted by Mr. Xilas, “we anticipate that after the pandemic, demand will move to modern offices outside the center of Athens, with easy access and mixed developments that will further combine residential location and day-to-day services (restaurants, gyms, etc.) etc.). At the same time, thanks to the significant investments made in recent years, the Piraeus area has begun to acquire a significant position as a location for new offices. The new major investment concerns the reconstruction of the Piraeus Tower under the joint scheme of Dimand Real Estate – EBRD and Prodea Investments ”.
Likewise, Geoaxis research reveals a new market trend. This concerns the use of offices with flexible internal architecture and lease times, since due to the pandemic, “the number of users who choose such premises, rather than long-term office lease contracts, is increasing.”