The Greek commercial real estate market is maintaining its positive momentum, after a long recovery period that led to the full recoupment of the losses from the crisis, an Alpha Bank analysis points out.
Prices for high-specification offices and shops continue to rise, supported by the steady pace of economic growth in recent years, the strengthening of Foreign Direct Investment in real estate, and the sustained demand for modern commercial spaces.
The market’s growth shows strong differentiation both geographically and in terms of the individual property categories. Athens is recording faster price growth compared with Thessaloniki and the rest of Greece, while retail shops are showing stronger long-term momentum compared with offices.
These trends reflect, among other things, the concentration of business activity in the capital, the upward course of 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 in the previous decade- indicates the gradual adjustment of the supply of modern stock.
Investments are being directed toward individual property categories such as commercial warehouses and tourism properties, while new sectors are also emerging, e.g. data centers and specialized forms of housing (e.g. student and tourist rentals). Factors such as construction quality, energy upgrading, and locations with modern infrastructure are estimated to play a significant role in investment decision-making.
Office and shop prices
According to the latest data from the Bank of Greece, the price indices for high-specification offices and shops increased by 5.1% and 4.8% in 2025, maintaining a positive picture in both the first and second half of the year.
The momentum of the commercial real estate market, however, is not distributed evenly geographically, as in Athens the rates of price increase are higher, both for offices and for shops, compared with Thessaloniki and the rest of Greece. This may reflect the higher concentration of business activity in Attica (where 39% of active businesses are established), which strengthens demand for modern commercial spaces.
More specifically, the office price index has been recording a continuous rise since 2016, with the result that in 2025 it marginally exceeded (0.1%) the historic high of 2010. This increase comes mainly from Athens, where prices rose by 7% in 2025, exceeding the 2010 level by about 15%.
Prices in Thessaloniki and the rest of Greece increased more moderately by 4.2% and 2.5% in 2025, remaining about 13.5% lower compared with 2010. In high-specification shops, the recovery over the last decade appears stronger compared with offices, something that is possibly linked to improved consumption and the strong performance of tourism, factors that support demand for retail spaces in central and commercially developed areas.
Specifically, the shop price index exceeded the 2010 level by 10.7% in 2025, with Athens moving above that percentage (17.7%) and Thessaloniki (5.3%) and the rest of Greece (0.8%) remaining lower.
Construction activity and market expectations
Construction activity in commercial real estate, both in terms of the number of new permits and volume (in cubic meters), has generally been moving upward over the last five years, with a significant increase being recorded not only in offices and retail shops but also in industrial properties. Specifically, new building permits for offices were almost three times as many last year compared with 2019, up by 38% in 2025.
This development is attributed in part also to base effects, as the increase recorded in 2024 exceeded 100%. One factor that may be contributing to the positive course of office construction activity is the gradual decline of remote work.
According to Eurostat data, the percentage of employed persons under a teleworking regime increased from 5.2% in 2019 to 14.8% in 2021. However, by 2025 this percentage had fallen to 6.8%, a development that is partly linked to the gradual return of employees to physical workplaces.
As regards retail shops, new building permits declined in 2020 due to the pandemic, but recovered the following year, exceeding 700. They gradually returned to this level over the last two years, with the annual increase in 2025 reaching 10%, while the rise in volume came to 41%. Among the other categories of commercial real estate, industrial buildings stand out, with the volume of new building permits having almost doubled in 2025 compared with pre-pandemic levels.
Additionally, in the hotel sector construction activity has remained steadily strong in recent years, compared with the period of the economic crisis. In the first two months of 2026, the development of commercial real estate strengthened further, as new building permits increased overall by 25% in number and 84% in volume.
Notable was the increase in retail shops, educational buildings, and rental accommodations, while new office building permits decreased in number and increased in volume.
Investments and returns in commercial real estate
The Commercial Real Estate Survey of the Bank of Greece for the second half of 2025 (April 2026), shows that from an investment perspective, interest in the commercial real estate market remained strong, with particular emphasis on warehouses and industrial spaces, hotels, while offices and shops maintained an important role in the investment portfolio with shares of 17% and 9% respectively.
Additionally, the average estimated returns 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 is noted that office returns show differentiation, reflecting quality characteristics and technical specifications such as, among other things, energy upgrading, renovation, and modern facilities.
A similar picture is observed both in returns and in the estimated vacancy rates of shops located on Athens’ main shopping streets.
In commercial warehouses, although returns have followed a downward course over the last five years (from 9.4% on average in the second half of 2019, to 8% respectively in 2025), they range at higher levels compared with offices and shops.
According to participants in the same survey, areas of former industrial use, urban regeneration projects, as well as specialized categories of commercial real estate that offer high returns, are of particular investment interest.