In the first quarter of 2024, market rents for older office spaces in Greece saw a noticeable increase compared to the previous year, according to research by GEOAXIS. This rise was consistent across all six study areas, with a notable decade-long average increase of 40%.

The office market exhibits diverse characteristics, with high-quality modern offices commanding rents exceeding 30 euros/sqm/month and yields around 6.0%.

Renovated offices in Kolonaki and other central areas show resilience, with rents around 15-20 euros/sqm/month and yields of 7.0%.

Conversely, older or non-renovated offices struggle to rent for even 10 euros/sqm/month in secondary locations in Athens, with yields around 7.5%.

Given the ongoing absence of recovery in the real economy, it’s anticipated that these varied dynamics will continue throughout 2024. This lack of recovery hampers the potential support for thousands of small and medium-sized enterprises and freelancers who typically rely on and initially occupy non-high-specification office spaces.

As a general trend, Geoaxis estimates that the different dynamics in the office market will continue into 2024/2025, predicting stability for older offices, increased demand for renovated spaces, and a slowdown in the rise of rents for modern, green offices.