Commercial Real Estate Deals Surge 143% to €560m — What Buyers Must Know

Greece’s retail rebound: real estate Greece posts a sharp recovery

The real estate Greece market registered a striking shift in 2025, and the retail sector led the charge. After years of uneven recovery, commercial property transactions rose by 143% year-on-year to reach €560 million, a figure that signals renewed investor confidence in retail-focused assets. Our analysis looks at what drove the surge, where activity clustered, and how buyers and investors should respond.

Quick summary of the headline numbers

• 2025 investment volume in commercial real estate: €560 million (+143% YoY)
• Q4 2025 transactions: €294 million
• Largest portfolio transfer: Prodea’s Milora portfolio to the Papalekas group, total deal value €680 million, with roughly €250 million attributed to retail assets
• Secondary notable sale: part of the Minion complex to Alpha Bank for €36.7 million

These data come from Cushman & Wakefield Proprius and reflect recorded purchases and sales across the commercial sector, concentrated largely in the retail segment.

What happened on the ground: leasing and brand activity

Activity was not limited to institutional deals. The recovery shows up in the high street and shopping centres, with major brands signing new leases and expanding physical footprints.

• On Ermou Street, Parfois leased 480 sq.m in a high-traffic section near Syntagma Square. This is a significant footprint for a fast-fashion accessory brand on Athens’ best-known shopping artery.
• Luxury retailers entered or expanded in central locations: Jimmy Choo opened its first Greek store in City Link, and Chloé established a boutique at the same centre.
• New Yorker opened a large-format store of 3,273 sq.m on Stadiou Street, close to Omonia Square — a move that illustrates demand for big-box retail still exists in central Athens.
• In Kolonaki, on Voukourestiou Street, LVMH leased 2,161 sq.m, showing appetite from luxury groups for core premium streets.

Rent levels remain firm, and the spread between top high-street and suburban locations is clear. Recent market rents reported:

• Ermou (near Syntagma): €310/sq.m per month
• Voukourestiou (Kolonaki): €300/sq.m per month
• Ioannou Metaxa (Glyfada) & Tsimiski (Thessaloniki): €160/sq.m per month
• Kifissia: €120/sq.m per month
• Piraeus: €100/sq.m per month

Those figures show that prime central streets still command premium pricing, while regional and suburban retail remains more affordable but active.

Why investors returned in 2025: drivers behind the jump

Several factors help explain the rebound in commercial real estate transactions in Greece.

• Restored consumer demand: Tourist flows and domestic spending both played a role in lifting footfall in core retail corridors. The presence of international luxury brands signals confidence in sustained tourist-driven consumption.
• Portfolio deals and consolidation: The Milora transfer from Prodea to Papalekas — a €680 million transaction — altered ownership concentration and shifted significant retail stock between large investors. That deal alone underlines a return of institutional money to Greek retail.
• Lease activity and tenancy upgrades: High-profile leases by luxury and fast-fashion brands increase the attractiveness of assets, especially where leases include long-term covenants and strong covenant strength.
• Price discovery and market re-rating: After a period of caution, buyers and sellers re-engaged, and transaction pricing adjusted to reflect stronger fundamentals in prime locations.

In our view, the combination of high-profile tenant commitments and large-scale portfolio deals created a momentum effect, encouraging other investors to re-enter the market.

What this shift means for buyers and property investors

The headline growth is striking, but the implications differ by strategy and asset class. Here are practical points for different investor profiles.

• Core investors seeking yield stability should focus on prime high-street retail in Athens and select regional centres where rents of €300–€310/sq.m per month indicate strong cashflow potential. Long-term, indexed leases with blue-chip tenants offer the most predictable revenue.
• Value-add and opportunistic buyers can look at assets outside the prime corridors, or assets with short-term vacancy that can be repositioned. With institutional interest returning to the market, competition for truly prime stock will likely compress yields.
• Retail landlords considering disposals should assess tenant mix upgrades and lease terms before selling; portfolio packaging increases buyer interest, as the Milora transaction shows.

From an investor’s perspective, this is a market where active asset management matters. Tenant quality, lease length, indexation clauses, and operating expenses will determine net operating income and, ultimately, returns.

Risks and structural headwinds to balance against the optimism

While investor confidence is higher, risks remain and buyers need to price them into acquisitions.

• Geographic concentration: Much of the activity is concentrated in Athens and Thessaloniki. That raises exposure to local demand and to the tourism cycle. Overweight positions in a single city increase vacancy and rental risk.
• Tourism sensitivity: Luxury and specialty retail depend on international visitors. A shock to travel patterns could quickly hit sales and rent growth expectations.
• E-commerce and changing consumer behaviour: Physical retail is reshaping. Assets that do not offer experiential or service-oriented draws may see future demand decline.
• Financing environment: The broader cost of capital influences yields. Rising borrowing costs or tighter lending standards could slow transaction momentum and reduce leverage-friendly buyers' ability to bid up prices.
• Lease risk and tenant credit: Not all tenants signed in 2025 have the same credit strength. Due diligence on tenant covenants, break options, and rental indexation is essential.

Investors must weigh these risks against the clear signs of recovery.