One of the most accessible capitals at a pan-European level for lease of modern offices remains the Athena, a fact which, combined with the significant investments in the development of new modern and mainly green office buildings, but also the upgrading of part of the existing building stock, generates significant expectations for the future. In fact, these may also include the attraction of foreign groups, in order to establish their headquarters in Athens, compared to other cities in Europe, with all that this implies, not only for the office market, but also overall for the economy and the added value to be created.
According to Dika Agapitidou, head of JLL-Athenian Finance, “really recently we have been registering interest in renting offices in Athens, mainly from technology groups, who are looking at Athens and a few more cities in the wider region”. However, Ms. Agapitidou adds that there remain some difficulties that prevent the further improvement of the appeal of the Greek market to foreign groups, such as the modernization of the Judiciary, the removal of bureaucratic obstacles, higher taxes and higher employment costs, especially compared to other Balkan countries. “These are fundamental factors, which are considered by companies in the context of making a decision on the country to settle in and are not related to the office market,” he emphasizes.
The rent for high-end spaces reaches 30 euros/sq.m., when in London the corresponding price is 140 euros/sq.m.
However, it is not excluded that in the next period there will be a greater flow of foreign companies to Greece. As Dimitris Andriopoulos, managing director of Dimand, said at the recent Prodexpo, the big real estate groups have received attacks from Israeli companies interested in acquiring offices in Greece. Large Israeli companies have mobilized after the latest events in Gaza, considering it useful to set up offices in Athens as well.
Based on the comparative data processed by JLL-Athenian Finance on its behalf “K”, the cost of renting a modern office building in Athens is 25 euros/sq.m. on a monthly basis, increasing by 4% in the last 12 months. But there are also cases of new, bioclimatic offices, in areas of high demand, such as Maroussi and the center of Athens, where leases can be made at the level of 30 euros/sq.m. In any case, more affordable rental prices than Athens are only found in a few regional markets in the rest of Europe, such as Bucharest, Bratislava, Antwerp and The Hague. On the other hand, in London, which remains the most expensive market, the cost of renting offices amounts to 140 euros/sq.m. per month, while in Paris and Geneva it amounts to 80 and 78 euros/sq.m. respectively.
“In Attica, according to our company’s database, 85,600 sq.m. were absorbed. offices, approximately 12% less than the corresponding period last year. The increased demand from the technology and education sectors is compensated by the partial contraction of the corresponding demand from other business sectors, which have adopted flexible ways of working and have smaller needs for physical office spaces”, points out Ms. Agapitidou. Another feature of the Greek office market is that more and more office users, regardless of whether they rent or own their properties, appear willing to pay higher rent or invest capital in order to align with the EU’s green checks. for sustainability. Also, companies wish, through their office buildings, to be more attractive in terms of working environment to employees, at a time when finding and retaining staff in most business sectors is a severe problem.
