Over 200,000 square meters of new office buildings are currently under development in Athens’ real estate market, with an additional 133,428 sq.m. in the planning stages, indicating a rise in investment activity aimed at meeting the strong demand from businesses for modern leased office spaces. According to the latest analysis by CW Proprius, 45,000 sq.m. of office space in the greater Attica area was absorbed in the second quarter of the year—50% higher than in the first quarter, though 13% lower year-on-year, primarily due to fewer agreements and limited availability of suitable premises.
During the second quarter, 60% of deals involved modern office buildings. In total, during the first half of 2024, lease agreements were signed for 75,000 sq.m., with 40% of these agreements representing contract renewals and the remaining 60% for relocations to new offices. The analysis notes substantial demand from sectors such as services, IT, and public administration, including the relocation of the public revenue agency to new offices at the former Athens Heart mall, Converted by Premia Properties into a “green” building. One in three (32%) leases in the second quarter concerned properties in Athens city center and 30% in the northeastern part of Attica, while the southern suburbs absorbed 25% of demand, significantly higher than recently. As CW Proprius reports, this demonstrates the growing appeal of the so-called Attica Riviera for hospitality and office uses. High demand and limited supply continue to fuel the rental prices, which are now around 30 euros/sq.m. on a monthly basis, while many of the buildings under construction have already secured tenants. At the end of the second quarter, from the 197,400 sq.m. under construction, lease agreements already existed for 45% of the premises. In Q2, 28,000 sq.m. of offices were delivered in Attica, with 70% of them already having a tenant or being in negotiations with prospective tenants. CW Proprius estimates that conditions in the office market will remain positive and demand will stay high, especially for “green” office buildings.
Almost one in three (32%) leases of office spaces in the second quarter concerned properties in Athens city center, 30% in the northeastern
part of Attica, while the southern suburbs absorbed 25% of the demand, which is significantly higher than recently.
