According to a report by Geoaxis Observatory, demand and rents for modern warehouses (currently around €5.50 per sqm/month) will continue to rise in 2025, albeit at a slower pace, with yields stabilizing at approximately 6.75%.
In the first half of 2024, over 200,000 sqm of new logistics space was leased, with vacancy rates remaining extremely low, under 3%. Currently, more than 400,000 sqm of new buildings are under development, most of which have already been leased. This figure does not include the "Thriassio I" project, which will add an additional 260,000 sqm.
In Athens, the total space for industrial production, traditional warehouses, and 3PL is estimated at 3.5 million sqm. Notably, a significant portion—around 40%—comprises aging factories that ceased operations years ago and are now used solely as storage spaces for dry cargo.
The existing logistics infrastructure consists primarily of small warehouses and distribution facilities scattered throughout the country. In most cases, these warehouses have an interior usable height of under 9 meters, significantly limiting storage capacity using pallets, which is standard in modern facilities. Modern warehouses require an interior height of over 10 meters, a feature not commonly found in existing buildings available for lease.
Indicative Construction Costs:
- €60–100 per sqm for facilities and surrounding site modifications.
- €550–650 per sqm for the core building, including design, studies, permits, and supervision.
- An additional €300–450 per sqm for office spaces and electromechanical facilities.
Based on the above, the indicative construction cost for a turnkey warehouse (type Z3) is between €650–750 per sqm. It is important to note that these costs cover only the building construction and do not include equipment or land costs.
Supply, Demand, and Yields: Currently, any new logistics space over 15,000 sqm can be leased immediately due to accumulated demand and virtually non-existent supply. This market imbalance leads to rising values and a reduction in yield rates to the range of 6.75%–7.00% for high-quality properties, depending on location and construction features.
Companies that entered the market early in the current upturn secured even lower purchase prices, achieving almost double-digit annual returns. Yields in Greece are among the most competitive in Europe, as typical yields in the UK, France, or Germany for prime properties are around 5.0%–5.5%, with upward trends expected for 2025.
Lack of Available Properties: According to Geoaxis, a significant issue in the market is the lack of rental properties, as newly built warehouses are either constructed by the users themselves or leased before construction is completed. By early 2025, a newly built warehouse in a strategic location could command rents around €5.50 per sqm/month. This is significantly lower than the European average, where rents typically range from €8.00 to €10.00 per sqm/month. The highest rents are found in London, exceeding €20 per sqm/month.
Based on a market survey conducted in November-December 2024, after a 10% adjustment for negotiation, the highest median asking rental price is in Aspropyrgos at €5.27 per sqm/month. Next in line are the Mesogeia region of Athens with €4.50 per sqm/month, and Elefsina with €3.83 per sqm/month. Lower median rental prices are found in the Sindos Industrial Park (€3.25 per sqm/month), Oinofyta (€2.83 per sqm/month), and Kalochori (€2.81 per sqm/month).
Many projects for new warehouse and logistics facilities are progressing or are expected to start in 2025, with investments estimated to exceed €2 billion in Athens and Thessaloniki.
In addition to leasing, there is also a shortage of properties for sale, with warehouse prices currently exceeding €1,000 per sqm.
