Rising Rents and Property Prices Strain Greek Entrepreneurs

The steady rise in property prices and rents for office and retail spaces across Greece continues to tighten the noose around thousands of professionals and small business owners, many of whom are struggling to stay afloat.

Demand remains strong, particularly for high-quality properties located in high-visibility or tourist-heavy areas. However, small and medium-sized enterprises are finding it increasingly difficult to secure affordable leases in such zones.

According to provisional data from the Bank of Greece, the average sale price of prime office space nationwide rose by 4.9% in 2024 compared to the previous year. That figure follows a similar uptick of 5.9% recorded in 2023. Regionally, Athens saw the sharpest increase, with prime office prices rising 6.9%, followed by Thessaloniki at 6.1% and the rest of the country at 2.0%.

In the second half of 2024 alone, high-end office prices across the country rose by 4.3% compared to the first half of the year. This comes after more modest half-year increases of 1.7% in late 2023 and 1.8% in early 2024. Regionally, Athens led the surge again with a 6.3% increase, while Thessaloniki posted a 4.0% rise and the rest of Greece saw prices grow by 1.6%.

Office rental rates also moved upward in 2024, albeit at a slower pace. Across all office categories nationwide, nominal rents increased by 1.9%. Breaking that down, Athens posted a 5.0% rise, Thessaloniki barely moved with a 0.1% increase, and the rest of the country saw a 1.2% decline.

During the second half of the year, office rents rose 0.9% nationally compared to the first half — matching the pace set in the first half of 2024, but down from 1.2% in the latter half of 2023.

Retail spaces followed a similar upward trend. According to provisional figures, the average sale price of high-end retail properties nationwide jumped 8.8% in 2024, outpacing the 7.2% growth seen in 2023. Regionally, Athens again saw the sharpest increase at 10.4%, followed by 6.5% in Thessaloniki and 6.7% across the rest of Greece.

Source: tovima.com