Commercial real estate: low deals in the EU for 13 years, will Greece hold up?

Commercial real estate investments in Greece for the first quarter of 2024 reached 100 million euros, while they fell at the European level to 32.7 billion euros. This is 10% less than in the first quarter of 2023 and is the lowest level of real estate investment in Europe in the last thirteen years.

According to the latest research by BNP Paribas Real Estate, investments in offices have decreased by 27% this year, mainly due to high rental prices, hybrid work arrangements, and companies being forced to comply with new building sustainability standards. Investments in retail have dropped by 21%, while transactions in logistics have only decreased by 4%.

While a number of European countries have faced a significant decline in real estate investments, Greece continues to remain active in this market. In 2024, investments totaling 100 million euros were made, the majority of which were in office spaces.

Rent for office space

Despite this, compared to other European countries, Greece has the lowest office rental prices, at 372 euros per square meter per year. Meanwhile, rental prices in cities like Amsterdam, Central Paris, Central London, and Warsaw are on the rise. However, the most expensive office markets still remain London, Paris, Luxembourg, Dublin, andMilan, where prices exceed 600 euros per square meter per year.

Investor interest

According to data for the first three months of 2024, American investors have shown interest in the European real estate market, increasing their share. At the same time, Asian investments in Europe are declining, and investments from the Middle East are also decreasing.

Thus, investments in commercial real estate in Europe as a whole are declining, but Greece maintains a steady interest in this sector despite the changing market conditions.