The REIC appeared very cautious regarding its stance this year and moderately optimistic for the next period.
According to Prodea, the rents of prime offices on Kifissias Avenue increased by 13% till June 2020, quite "resilient" despite the adverse conditions brought by the pandemic.
As for the offices in the center of Athens, their prices ranged between € 18 and € 22 per square meter per month, recording a drop of 35% from their peak.
Net returns were reported between 5.25% to 6.50% and gross returns between 5.75% to 7%.
According to Prodea in 2019 and the "difficult" as it turned outto be first half of 2020- offices accounted for 32% and 13.4% of total commercial real estate transactions.
Despite the apparent decline, the company points out that both domestic and foreign investors continue to focus on privileged assets of domestic real estate.
However, there is limited availability of new developments and newbuilt offices that are entering the market are mainly redevelopments of existing assets.
It is worth mentioning, however, that the office portfolio of the listed REIC represents 71% in the Greek market with 61% in the area of Athens and 4% in Thessaloniki.
At the same time, the company has a presence of 20% in the Italian market with 12% of the portfolio located in Rome and 7% in Milan.
