According to recent data from Savills, since 2020, office rents in the central business districts of major European cities have increased by 19%, compared to just 9% in non-central locations.
This trend is also evident in the Greek market, with Athens consistently demonstrating increased activity. The areas experiencing the highest demand and strongest returns are those located within the city's core business zones, such as Syntagma Square, Vasilissis Sofias Avenue, and Kifisias Avenue in Marousi.
According to data from the Bank of Greece, office prices rose by 6.6% in the first half of 2024, while from their historical low in 2017, cumulative growth has reached an impressive 44.6%.
Data from advisory firm SYNERGY indicates that rents in these prime locations range between €18 and €31 per square meter per month, while yields remain between 5.65% and 7.00%—significantly higher than the average in major European cities, where yields typically fall below 5%.
This distinct shift is attributed to the growing preference of businesses for high-quality, environmentally sustainable, and strategically located commercial spaces that support physical employee presence and align with ESG standards.
The demand for premium office spaces in central urban areas has become a decisive factor in shaping both pricing and yields, at a time when flexibility, sustainability, and operational efficiency are redefining corporate real estate needs.
The prominence of central locations is expected to persist, at least in the short term, as the supply of high-specification properties remains constrained and demand for next-generation buildings continues to grow. Owners of modern, ESG-compliant assets in prime locations are well positioned to sustain strong investment returns.
