The lack of quality office space is still a hurdle for the market supply to meet investor demand, which appears to be persistent despite the pandemic.
There are many new developments of modern Grade A offices in Athens, which will partially cover current demand, while a number of new projects are already underway for the next 5 years in the sector as the economy expands overall attracting new players.
The profile of the investors interested in the Greek capital is unchanged comprising Greek REICs that dominate local transactions as well as international firms seeking to relocate to more modern and ESG-certified office space.
Meanwhile, new loan portfolios that are backed with real estate assets are expected to play an important role in terms of market transactions expected to be filled before the third quarter of 2022.
Thessaloniki
In Thessaloniki's office market has been observed high mobility during the last four years and interest has remained strong in the first half of 2022.
The investment by Pfizer in Thessaloniki has created a significant impact, opening the appetite for other well-known companies to further expand in Thessaloniki.
Importantly, 400 employees have already arrived at Pfizer's Center for Digital Innovation (CDI) in Thessaloniki.
A sensational new market entry is the development of Deutsche Telecom's IT Hub.
The creation of the new center, which will support the group's activities across Europe, brings to the city 300 IT specialists from the corresponding center, which was closed in Russia, in which it is estimated that another 300 Greek employees will work for this company as well.
At the same time, Thessaloniki is an attractive destination for multinational companies active in the field of call centers and services that are either already established in the city, or are looking for facilities to relocate to.
The high demand for office space has boosted construction activity for office buildings, and developers are looking for plots to develop offices or entire buildings that are undergoing radical renovations.
