Commercial property market in Greece surpasses crisis levels

According to analysts at the bank, the rise in prices for high-specification offices and retail stores continues, supported by steady economic growth, the strengthening of foreign direct investment, and sustained demand for modern professional spaces. However, market growth is not uniform. Athens remains the main driver of expansion, while new investment capital is increasingly directed toward warehouses, hotels, data centres, and specialised real estate segments.

Athens leads the upward trend

According to data from the Bank of Greece, prices for high-end office space increased by 5.1% in 2025, while retail property prices rose by 4.8%.

The strongest momentum comes from Attica, where office prices rose by 7% in 2025, now exceeding 2010 levels by around 15%. In contrast, Thessaloniki recorded a 4.2% increase, while the rest of the country saw only a 2.5% rise, with prices still about 13.5% below pre-crisis peaks.

This divergence is mainly attributed to the concentration of business activity in Attica, where around 39% of the country’s active enterprises are headquartered, sustaining strong demand for modern office space.

Athens continues to be the main growth driver, while new investment flows are shifting toward warehouses, hotels, data centres, and specialised property types.

Retail sector surpasses pre-crisis levels

The retail property market shows an even stronger performance. The relevant price index now stands 10.7% above 2010 levels. In Athens, prices have risen by 17.7%, in Thessaloniki by 5.3%, while in the rest of Greece they are marginally higher (+0.8%). This trend is linked to stronger private consumption and the robust performance of Greek tourism, which supports demand for commercial space in prime locations.

Construction activity accelerates

Rising demand is also reflected in construction activity. New building permits for office developments were nearly three times higher in 2025 compared with 2019, recording a 38% annual increase. For retail properties, new permits rose by 10%, while construction volume increased by 41%.

Industrial buildings also show strong momentum, with the volume of new permits almost doubling compared with pre-pandemic levels, while hotel construction remains consistently active. The positive trend continued into early 2026: in the first two months of the year, new permits for commercial real estate increased by 25% in number and 84% in volume.

Decline in remote work supports demand

The analysis by Alpha Bank highlights that the gradual return of employees to offices is supporting demand for modern workspaces. According to Eurostat data, remote work in Greece declined from 14.8% in 2021 to 6.8% in 2025, approaching pre-pandemic levels.

Shift toward logistics, hospitality and data centres

Investment activity remains strong, with increasing capital flowing beyond traditional offices and retail spaces into logistics warehouses, industrial properties, hotels, data centres, student housing, and tourism-related real estate. Urban redevelopment projects and the reuse of former industrial sites are also attracting significant interest.

Returns and challenges

Office yields in central Athens range between 6% and 6.8%, while vacancy rates stand between 5% and 9%. In the warehouse sector, yields remain higher at around 8%, although they have been gradually declining, reflecting increased investor demand.

Despite the positive outlook, market participants note that key risks remain geopolitical developments, high construction costs, and elevated energy expenses. At the same time, business expectations regarding construction prices continue to trend upward, indicating that cost pressures have yet to fully ease.