The value of transactions in the Athens office market in the first half of the year was 278 million euros.
In the same period, new lease contracts concerned 75,000 square meters with an average rent per square meter set at 29.5 euros per month for high-end offices.
The above data is from repeated research – recorded by the consultancy Cushman & Wakefield Proprius.
According to the aforementioned company, the office and hotel sectors are the two categories of commercial properties in which the highest volume of transactions was recorded in the real estate market in the period January-June 2024.
In particular, during the second quarter, investments in office space in Athens amounted to €110 million, with central Athens absorbing the largest share (55% or €60 million through 5 transactions, while around €33 million relates to deals in the wider Northeast Attica region).
The largest transaction concerned the historic building at 4 Korai Street in the centre of Athens, following the relevant agreement of the National Insurance Group – Dimand. The property in question will be renovated and sold by Dimand to Piraeus Bank on a turnkey basis, in order to locate the Bank’s central offices there. Of the total area of 14,500 m2, approximately 9,000 m2 will be allocated to the Bank’s offices and 3,000 m2 to retail and catering establishments.
At the same time, in the second quarter, new lease contracts for 45,000 m2 were registered in the Athens metropolitan area, increasing by 50% on a quarterly basis, but decreasing by 13% compared to the same quarter of the previous year.
The public sector, IT and services sectors were the most active in leasing new facilities.
For high-end real estate, the price per sq. m. per month in the center of Athens is 29.5 euros, followed by the northeastern suburbs with 29 euros per sq. m. in Marousi, Kifissias, around Attiki Odos and in Mesogion, with 16 euros in the offices on the National Road in the north, 24 euros in the south in Syngrou and Vouliagmenis, 18 euros in the port of Piraeus and 14.5 euros in other regional markets.
Reduced availability in Q2
Space available for rent decreased by 6% in the second quarter and the lack of availability of high-end space is particularly pronounced in the northeast of Athens.
The market continues to be disrupted by rising construction and reconstruction costs as well as high interest rates.
As highlighted, the office market is not uniform, but multi-speed depending on the quality of the facilities, the location and the dynamics of each individual market.
Continued strong demand for high-end office space, combined with relatively limited new development, is keeping rents high and this is not expected to change, at least not immediately.
During the second quarter of 2024, 28,000 m2 of office space was completed in Athens, of which 70% was already pre-leased or under negotiation with an interested tenant.
The Piraeus Tower was the largest new building delivered to its users in the second quarter, while at the end of the second quarter, 197,400 m2 of office space was under construction with a view to delivery by 2027, with 45% already pre-leased.