Returns that reach almost 9% are offered by commercial real estate, with stores offering some of the biggest profits, specifically “Big Box” type points of sale.
These are large independent retail stores usually located outside the city center and in which REICs invest, such as Premia Properties. Sources tell Euro2day.gr that this particular REIC is completing within the summer a Big Box type project in Koropi, where Tesla’s dealership in Greece will be housed.
Building permits are recovering
According to a new analysis by Alpha Βank, the number of new building permits for commercial stores has been steadily recovering since the pandemic.
In the Economic Developments Bulletin, Alpha Bank data show that the annual increase in 2025 stood at 10%, while the rise in volume terms reached 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.
“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 rise in commercial stores, educational buildings and rental accommodations, while new office building permits decreased in number and increased in volume” the report states.
As regards commercial real estate yields, the yields of Big Box stores range around 7% while at the same time annual profits on Ermou are below 6%.
“The average estimated office yields 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 yields show differentiation, reflecting qualitative characteristics and technical specifications such as, among others, energy upgrading, renovation and modern facilities,” the bank’s analysts emphasize.
“A similar picture is observed both in yields and in the estimated vacancy rates of stores located on Athens’ main commercial streets. In commercial warehouses, although yields 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 fluctuate at higher levels compared with offices and stores,” they add.
Premia and Trade Estates’ plans
As in other European countries, so too in the Greek market, Big Box stores attract significant capital from institutional investors.
In Koropi, Premia is investing approximately 5 million euros in a property being developed on a 9,080 sq.m. plot and featuring a gross building area of approximately 2,202 sq.m.
At the same time, Trade Estates is proceeding with two more Big Box investments, in a store model that suits IKEA. These are Top Parks Heraklion 2, with an investment amount of 25.5 million euros, with a gross leasable area of 10,000 sq.m., as well as the investment in Elliniko that is now entering the construction phase.