Entering a new phase of growth and transformation

Quality over location

The resurgence in office sales in early 2025 is expected to continue as more investors are pivoting back to the sector. The sector is repricing around quality, with occupiers gravitating to modern, energy-efficient buildings even as older stock still makes up most of the supply.

A stronger economy, growing corporate activity, and a retreat from remote work are lifting demand for physical office space. Athens drives the market, hosting over half of professional, administrative and ICT activity, with interest increasingly spilling into well-connected suburbs beyond the traditional CBD.

Scarce prime supply has pushed prime vacancy to record lows, while non-prime buildings face rising vacancy and softer absorption, widening the prime–non-prime rental gap since 2018. The outlook stays constructive, with quality-driven demand and the prime/non-prime divide expected to persist through 2027.

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Experience and proximity

Greek retail market is consolidating around 2 strategic axes: proximity-led grocery formats driving everyday demand and experience-led non-grocery stores competing for footfall in prime locations, while e-commerce remains a complementary rather than substitutive channel. Prime retail fundamentals are resilient, and shopping centres are evolving into multifunctional hubs in a market where mall density remains one of the lowest in Europe. 

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The growth engine

Logistics is the strongest performing pillar in the Greek real estate market, driven by international trade, e-commerce growth and rising reliance upon 3PL providers. Supply remains highly concentrated and fragmented, with very few certified facilities, creating significant scope for modern development.

Land scarcity near key hubs, rising construction costs and permitting challenges are constraining the pace at which supply can meet demand. REIC exposure to the sector has doubled since 2020, supported by a significant pipeline of new logistics parks under development in Thriasio and other strategic hubs. Logistics investors will continue to be attentive to the subdued occupier market, with tariff concerns and macroeconomic uncertainty making them more cautious, particularly on secondary assets.

Beyond new development, the sector's strategic role increasingly extends to repositioning obsolete industrial stock into modern, higher-yielding logistics platforms, as automation and taller, more space-efficient facilities redefine warehousing standards.

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The grand shift challenge

The residential market faces structural issues since affordability becomes the major challenge, with housing costs consistently outpacing income growth, while homeownership is gradually declining. Demand is structurally shifting toward smaller units and rental housing, driven by demographic changes and constrained financing, while supply remains aged and renovation activity is structurally weak. The market outlook remains moderately positive, as government support schemes, improving financing conditions and RRF-backed housing programs begin to address supply rigidities.

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The luxury pivot

The next growth frontier in hospitality is value rather than volume, with the hotel stock continuing to expand in absolute terms while its composition is being structurally repositioned toward smaller, high-star boutique and luxurious concepts, alongside experience-led resorts.

Demand remains strong but highly concentrated in five main destinations and activity heavily skewed toward peak season, reinforcing both capacity pressure and investment opportunity in core locations. Hotel revenue growth continues to be driven by pricing rather than volume, while smaller, higher-rated units deliver stronger investment returns than larger, lower-category properties.

Short-term rentals have emerged as a complementary accommodation layer, while investor appetite is concentrated on premium assets in core destinations, with REIC investments in the hotel sector nearly doubling over the past two years.

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