Greek commercial property investment reaches €560M, led by domestic investors

According to the latest report by Avison Young, based on transactions exceeding €10 million and excluding residential property—with limited pricing data available for the hotel sector—the average transaction size fell to €22 million, from €26 million a year earlier. Average quarterly activity remained close to the long-term average of €190 million.

The decline in transaction volumes, however, has not been accompanied by a corresponding weakening in demand. Avison Young identifies a shortage of modern, institutional-grade properties, resulting from limited development of new stock over a number of years. Greece remains a relatively small market by European standards, with commercial real estate investment volumes reaching €2.1 billion in 2025. According to the report, the lack of investment product of sufficient scale and the difficulty of creating scalable portfolios remain key constraints on further market growth.

Domestic investors also dominated the buyer side, accounting for 72% of total transactions, compared with 28% for foreign investors.

Greek Capital Accounts for 72%

By buyer type, developers represented the largest category at 33%, followed by funds at 17%, banks at 14%, owner-occupiers at 12%, private equity investors at 11%, the public sector/owner-occupiers at 7%, and private individuals at 6%, according to the report.

Avison Young identifies Dimand, Ten Brinke, Intracom and Ellaktor among the active developers and real estate companies, while Lidl, Dedeman and HEDNO also made significant acquisitions for owner-occupation. Bank-owned real estate companies and REITs are shifting part of their investment strategies toward hotels and living assets. International capital is focused primarily on hospitality, either directly or through Greek-listed companies.

Offices Account for 49% of Investment

Offices accounted for 49% of investment in the first nine months, boosted by two major owner-occupier acquisitions by HEDNO and the “Athena” Research Center.

Hotels followed with 17%, mixed-use properties with 13%, land acquisitions with 11%, industrial and logistics properties with 5%, retail with 4%, and other categories with 1%.

Mixed-use transactions include the repositioning of the former Minion department store into a residential and retail complex, while in land transactions, Avison Young highlights the entry of Intracom and Ten Brinke into the Ellinikon development.

The geographic concentration of investment in the capital increased. Attica accounted for 79% of transactions, excluding portfolio deals, compared with 65% in the corresponding nine-month period of 2025, leaving 21% for the rest of Greece, versus 35% last year.

Offices and retail properties together represented 53% of deals and were concentrated primarily in Athens’ established business and commercial districts. Outside the capital, activity is driven mainly by hotel investments on the islands and in Halkidiki, as well as transactions involving supermarkets and logistics facilities.

Despite the dominance of domestic investors in large commercial transactions, overall foreign investment in the Greek real estate market has recovered. Net inflows from non-residents reached €511.6 million in the first quarter, up 43% year-on-year and almost 120% above the ten-year average.

Prime Yields at 6.25%

The shortage of available prime assets is reflected in yields. Prime gross yields have converged at approximately 6.25% across most categories, although they widened by 25 basis points quarter-on-quarter due to geopolitical uncertainty and interest-rate expectations. On an annual basis, they remain broadly unchanged.

According to Avison Young, prime offices in both central Athens and Kifisias Avenue yield 6.25%, as do shopping centres and retail warehouses. Properties on prime high streets are lower, at 5%, while logistics yields stand at approximately 6.35%.

The spread relative to government bonds remains significant. With the Greek 10-year government bond yield at 4.20% in September and the prime yield for Athens offices at 6.25%, the risk premium stands at approximately 200 basis points.

Compared with other European markets, Athens records the highest spread over the risk-free rate, at 201 basis points, while the European average cited by Avison Young is approximately 49 basis points. The prime office yield in Athens, at 6.25%, compares with 6% in Warsaw, 5.25% in Prague, 5% in Lisbon, 4.8% in Brussels, and 4% in London, Paris and Munich.

Kifisias Office Rents Reach €33 per Sq. M.

In the office market, achievable prime rents on Kifisias Avenue have reached €33 per sq. m. per month, or €396 per sq. m. annually, remaining stable compared with 2025.

Secondary offices in the same market are achieving approximately €25 per sq. m. per month, or €300 annually. According to the report, small and medium-sized businesses are finding it increasingly difficult to absorb prime rents and are turning to secondary buildings and locations at €20–25 per sq. m. per month.

Demand is concentrated primarily in northern Athens, in areas with access to public transport and established business districts, while new demand is coming from the technology, education and energy sectors.

Prime buildings with ESG certifications, good transport links and strong leases generate yields of approximately 6.25%, while yields on secondary properties are 50–75 basis points higher, provided they do not require significant capital expenditure.

Logistics: Warehouse Shortage Pushes Rents Higher

The logistics market is similarly characterized by supply failing to keep pace with demand. Prime rents in Aspropyrgos, Thriasio and Oinofyta increased by 3% year-on-year in the third quarter, while the increase in Kryoneri reached 5%.

Prime logistics rents stand at €6–6.30 per sq. m. per month, while high-quality facilities with strong tenants and long-term leases are valued at gross yields of approximately 6.35%–6.5%.

Historical rental data show that smaller prime warehouses in Athens, below 5,000 sq. m., have reached approximately €81 per sq. m. annually, compared with €72 per sq. m. for prime industrial facilities in Thriasio and Aspropyrgos.

Demand is being driven by retail, e-commerce, food distribution and third-party logistics (3PL), with occupiers seeking larger, energy-efficient facilities featuring greater clear heights, automation and modern fire-safety systems.

Retail: Shopping Centre Rents Reach Record High

In the retail sector, the supply shortage is even more pronounced. Athens has fewer than 300,000 sq. m. of prime shopping-centre space, or just 79 sq. m. per 1,000 inhabitants, placing it, according to Avison Young, among the most undersupplied markets in Europe.

Prime shopping-centre rents have reached a record high of approximately €960 per sq. m. annually, equivalent to €80 per sq. m. per month for a 100 sq. m. store.

The increase is also supported by consumer spending, with retail sales volume rising by approximately 3.2% in the first half of 2026 and by 1.9% year-on-year in June.

On Athens’ and Thessaloniki’s main high streets, including Ermou and Tsimiski, prime yields can fall to as low as 5%, while shopping-centre yields are estimated at approximately 6.25%. For supermarkets and other convenience retail assets, yields for high-quality properties can fall below 6.5%.

The Greek Exception in a Challenging European Market

The picture becomes more significant when compared with the rest of Europe. Real estate investment in the euro area increased by 18% year-on-year in the first half of 2026, but declined by 3% quarter-on-quarter. Second-quarter investment volume stood at approximately €30 billion, while the rolling four-quarter volume was €131 billion, well below the previous cycle peak.

Investment in industrial property fell by 28%, reaching its lowest first-half level since 2017, while office investment remains at approximately half the levels recorded during the previous cycle. By contrast, investment in apartments increased by 15%.

Avison Young also notes that infrastructure and investments linked to artificial intelligence are increasingly competing with real estate for institutional capital allocation.

For Greece, the firm identifies the main opportunities in hotels, resorts and branded residences, student accommodation, residential property, logistics, data centres and energy-efficient buildings. In the data-centre sector, however, the availability of electricity and grid capacity remain key constraints.

Avison Young expects demand for high-quality assets offering secure, inflation-protected income streams to remain strong. At the same time, limited supply of institutional-grade product and the gap between sellers’ and buyers’ price expectations will continue to constrain transaction volumes.

Prime yields are expected to remain broadly stable, while domestic capital may continue to play a stronger role than foreign investors in smaller transactions.

Key takeaway: The Greek market has capital and demand, but not enough modern investment product. Attica now accounts for 79% of transactions, while prime yields remain close to 6.25%.