Prime rents in the Greek office market remained stable in the first quarter of the year, according to Cushman and Wakefield Proprius, who expect investment activity in the sector to pick up despite the war in Ukraine and inflationary pressures.
In a report, Cushman and Wakefield Proprius said landlords and tenants will face the challenge of a significant rise in inflation and rising construction costs.
“Shortages of materials and personnel on construction sites could delay the completion of office projects. Although most companies will continue to offer their employees the right to work remotely, the office is proving to be a crucial place for internal exchange and cooperation, developing corporate identity and culture and fostering employee satisfaction,” the report said.
The occupier’s confidence was reflected in the strong absorption in Athens of 35,000 m², well above the quarterly average and 55% higher than the figure recorded in the first quarter of 2021 thanks to the easing of sanitary restrictions and the improving the economic climate.
The CBD and Northeast Athens are the most attractive submarkets, while the size of rental transactions has been increased and the average transaction is now 750 m² compared to the 600 m² of the 2021 average, according to The report.
The majority of office rentals come from the public sector, consulting firms and the technology sector, he added.
On the investment side, real estate investment company Prodea has acquired prime development land along Kifisias Avenue, Marousi, and will develop two buildings totaling 17,000 m² GLA of prime office space. . Additionally, ehret+klein, a German investment company, entered the Greek market by acquiring a 3,500 m² central office building along Stadiou Street.