The Greek commercial real estate market is maintaining its positive momentum following a long period of recovery that has led to the full recovery of losses incurred during the crisis, according to an analysis by Alpha Bank.
Prices for high-end office and retail spaces continue to rise, supported by the steady pace of economic growth in recent years, the increase in foreign direct investment in real estate, and sustained demand for modern commercial spaces.
Market growth varies significantly both geographically and across different property categories. Athens is experiencing faster price growth compared to Thessaloniki and the rest of Greece, while retail spaces are showing stronger long-term momentum compared to office spaces.
These trends reflect, among other factors, the concentration of business activity in the capital, the upward trend in private consumption, and the role of tourism in supporting demand in the real estate market.
At the same time, the revival of construction activity in recent years—which had been limited over the past decade—suggests a gradual adjustment of the supply of modern housing stock.
Investments are directed toward specific property categories such as commercial warehouses and tourist properties, while new sectors are also emerging, such as data centers and specialized housing types (e.g., student and tourist rentals). Factors such as construction quality, energy efficiency upgrades, and locations with modern infrastructure are expected to play a significant role in investment decisions.
Office and Retail Property Prices
According to the latest data from the Bank of Greece, price indices for high-end office and retail properties rose by 5.1% and 4.8% in 2025, maintaining a positive trend in both the first and second halves of the year.
However, the momentum of the commercial real estate market is not evenly distributed geographically, as price growth rates in Athens are higher—for both offices and retail spaces—compared to Thessaloniki and the rest of Greece. This may reflect the higher concentration of business activity in Attica (where 39% of active businesses are located), which drives demand for modern commercial spaces.
More specifically, the office price index has been rising steadily since 2016, resulting in a marginal increase (0.1%) in 2025 above the all-time high set in 2010. This increase stems primarily from Athens, where prices rose by 7% in 2025, exceeding the 2010 level by approximately 15%.
Prices in Thessaloniki and the rest of Greece rose more modestly, by 4.2% and 2.5% in 2025, respectively, remaining approximately 13.5% lower than in 2010. In the high-end retail sector, the recovery over the past decade has been stronger than in the office sector, a fact likely linked to improved consumer spending and strong tourism performance—factors that support demand for retail space in central and commercially developed areas.
Specifically, the retail price index in 2025 exceeded the 2010 level by 10.7%, with Athens recording a higher rate (17.7%) and Thessaloniki (5.3%) and the rest of Greece (0.8%) recording lower increases.
Construction Activity and Market Expectations
Construction activity in the commercial real estate sector, both in terms of the number of new permits and volume (in cubic meters), has generally been on the rise over the past five years, with significant growth recorded not only in offices and retail spaces but also in industrial properties. Specifically, new building permits for offices were nearly three times higher last year compared to 2019, rising by 38% in 2025.
This trend is partly attributed to base effects, as the increase recorded in 2024 exceeded 100%. One factor that may be contributing to the positive trend in office construction activity is the gradual decline in remote work.
According to Eurostat data, the percentage of employees working remotely rose from 5.2% in 2019 to 14.8% in 2021. However, by 2025, this percentage had fallen to 6.8%, a trend linked in part to the gradual return of employees to physical workplaces.
As for retail stores, new building permits declined in 2020 due to the pandemic but rebounded the following year, exceeding 700. They have gradually returned to this level over the past two years, with annual growth in 2025 projected at 10%, while the increase in volume reached 41%. Among the other categories of commercial real estate, industrial buildings stand out, with the volume of new building permits having nearly doubled in 2025 compared to pre-pandemic levels.
Additionally, in the hotel sector, construction activity has remained consistently strong in recent years, compared to the period of the economic crisis. In the first two months of 2026, growth in commercial real estate strengthened further, as new building permits increased by 25% in number and 84% in volume.
There was a notable increase in retail stores, educational buildings, and rental accommodations, while new building permits for offices decreased in number but increased in volume.
Commercial Real Estate Investments and Returns
The Bank of Greece’s Commercial Real Estate Survey for the Second Half of 2025 (April 2026) shows that, from an investment perspective, interest in the commercial real estate market remained strong, with a particular focus on warehouses and industrial spaces, hotels, while offices and retail spaces continued to play a significant role in investment portfolios, accounting for 17% and 9% of the total, respectively.
In addition, the average projected yields for offices in Athens’ central business district ranged between 6% and 6.8% in 2025, with vacancy rates in these areas ranging from 5% to 9%. It should be noted that office yields vary, reflecting quality characteristics and technical specifications such as, among other things, energy upgrades, renovations, and modern facilities.
A similar pattern is observed in both the yields and the estimated vacancy rates of retail units located on Athens’ main shopping streets.
In the commercial warehouse sector, although yields have been on a downward trend over the past five years (from an average of 9.4% in the second half of 2019, to 8% in 2025, respectively), they remain at higher levels compared to offices and retail spaces.
According to participants in the same survey, the redevelopment of former industrial sites, urban regeneration projects, and specialized categories of commercial real estate that offer high returns are of particular interest to investors.