Banks are shifting toward the hospitality and housing sectors in their real estate investment portfolios, according to a new report; however, large institutional investors show a clear preference for office investments.
In a report by Avison Young Greece, the new trends in the commercial real estate market since the beginning of the year are described.
As regards the broader market, it is emphasized that there is strong demand for quality properties that offer secure income streams, with protection against inflation; however, the supply of such properties remains limited.
“Greek institutional investors, cross-border capital investing in the hotel sector and private buyers will remain the key players in the market,” the report underlines.
Developers first
In an analysis examining the profile of buyers active in the commercial real estate market, Avison Young states that 33% are development companies, 17% are institutional investors, followed by banks (14%) and property users (12%)
During the year, certain large tenants from the retail sector (Lidl, Dedeman) and the public sector (HEDNO) proceeded with the acquisition of large-scale buildings, Avison Young notes.
At the same time, real estate development and management companies (Dimand, Ten Brinke, Intracom, Ellaktor) are proceeding with acquisitions in the context of significant property development and reconstruction projects in the wider Athens area.
Banks and REICs “have adjusted their investment strategies, turning their interest to the hospitality and housing sectors”.
Offices at the forefront
As regards the main transactions in commercial real estate in 2026, 49% of deals concern offices.
This is a sector where the limited supply of quality spaces will support developments and reconstructions, while geopolitical uncertainty and rising costs may delay new projects and limit the potential for developing affordable office spaces.
Achievable rents for prime offices are around 33 euros per sq.m., although asking prices may be significantly higher.
With the continuous increases in energy prices and the rise in inflation, “tenants have become more sensitive to cost issues”.
“Prime offices with ESG features, close to public transport hubs and with favorable lease terms, achieve prime yields of around 6.25%,” the report adds.