This shift reflects a clear trend of businesses moving towards upgraded workspaces, characterized by central locations and high sustainability standards. The quality of available stock, proximity to transportation networks, and growing demand for modern, certified spaces enhance the bargaining power of property owners in the most prominent city sectors.
The upward trend in rents in central areas is driven by three key factors:
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Return to the office: The post-pandemic era has heightened the demand for high-quality, easily accessible workspaces that encourage employees to return to physical offices.
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Certified "green" buildings: Compliance with ESG criteria and sustainability requirements places newer buildings in a more favorable position.
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Limited supply: Delays in permit approvals and rising construction costs have slowed the influx of new projects into the market.
In contrast, in non-central areas, tenants typically hold greater negotiating power, leading to frequent concessions such as rent-free periods or flexible lease terms. Demand remains subdued in these areas, as businesses focus on reducing risk and optimizing operational efficiency.
What does this mean for the market?
Savills forecasts that the dominance of central areas will persist, at least in the short term, as the availability of high-quality spaces becomes more limited and demand for next-generation buildings rises. Property owners offering spaces that meet modern specifications in strategic locations are expected to maintain strong returns.
Although the data from the international consultancy primarily concerns markets like London, Paris, and Frankfurt, the trends are not significantly different from those observed in Athens. Areas around Syntagma Square and Kifisia Avenue are seeing higher activity and lower availability, while the northern and eastern suburbs exhibit more price flexibility. While the Greek office market lags behind, it is steadily converging with broader European trends, where location and quality increasingly dictate value.
Source: Savills
