Published on and written by Cyril Jarnias
Commercial real estate in Greece is experiencing a resurgence of interest from international investors. After years of economic crisis, the Hellenic country now offers enticing opportunities in a market that is recovering strongly. The combination of a growing economy, a thriving tourism sector, and still-attractive prices makes Greece a prime destination for savvy investors.
Since 2018, the Greek real estate market has seen a significant recovery, with a steady increase in prices and transactions. This trend has continued into 2024-2025, despite global economic challenges. Foreign investors, particularly from Germany, the United Kingdom, and the United States, have played a crucial role in this dynamic, drawn by high potential returns and an increasingly favorable regulatory framework.
The Greek government has implemented several measures to stimulate foreign investment, notably the “Golden Visa” program, which offers a residence permit in exchange for a real estate investment of at least €250,000. This initiative, coupled with favorable tax policies, has significantly boosted the appeal of the Greek market for international investors.
Good to know:
Greece currently offers one of the lowest investment thresholds in Europe for obtaining a residence permit, making it an attractive gateway to the European market for non-EU investors.
A Range of Possibilities: The Gems of Greek Commercial Real Estate
The commercial real estate market in Greece offers a diversity of opportunities suited to different investor profiles. Here is an overview of the main segments attracting attention:
Offices: The Renewal of Workspaces
The office sector is undergoing a major transformation, particularly in Athens. Demand for modern, flexible workspaces is on the rise, driven by the arrival of startups and international companies. Areas like Marousi, Kifissia, and downtown Athens are especially sought after.
- Renovating old buildings to create coworking spaces
- Developing eco-friendly office complexes
- Acquiring well-located buildings for long-term leasing to multinational companies
According to JLL data, the vacancy rate for prime offices in Athens fell to 8% in 2024, while prime rents increased by 5% year-over-year, reaching €25/sqm/month in the best locations.
Retail: Between Tradition and Innovation
- Retail parks on the outskirts of major cities
- International brand boutiques in upscale resort towns
- Commercial spaces integrated into mixed-use projects
The retail market has shown remarkable resilience, with prime rents increasing by 3% in 2024 in top locations in Athens, reaching €130/sqm/month according to CBRE.
Hospitality: The Pillar of Greek Tourism
- Renovating existing hotels to move upmarket
- Developing luxury hotel complexes on popular islands like Mykonos or Santorini
- Acquiring urban hotels to capitalize on growing business tourism
According to data from the SETE Institute, the RevPAR (revenue per available room) of 5-star hotels in Athens increased by 8% in 2024, reaching €120, reflecting the sector’s vitality.
Good to know:
The Greek hotel sector offers some of the most attractive yields in Europe, with prime yield rates ranging between 6% and 8% depending on the location.
Investing in commercial real estate in Greece offers high profitability potential, but it is important to carefully assess the associated risks.
Attractive Yields in a Growing Market
- 6% for prime offices in Athens
- 5.5% for street-level retail in the best locations
- 7% for well-established shopping centers
These yields, combined with potential capital appreciation due to the market recovery, offer interesting prospects for investors. Greece’s sustained economic growth, with GDP rising by 2.5% in 2024 according to Bank of Greece estimates, reinforces these positive outlooks.
Risk Management: Points of Caution
Despite these opportunities, it is crucial to consider certain risks:
Regulatory risk: Although the legal framework has improved significantly, investors must remain vigilant about regulatory changes, particularly regarding taxation and urban planning.
Market risk: The Greek economy’s dependence on tourism can make certain segments, such as hospitality, more vulnerable to global economic fluctuations.
Operational risk: Managing assets remotely can be complex, often requiring the use of reliable local partners.
- Diversify investments across different asset types and locations
- Work with experienced local legal and tax advisors
- Consider partnerships with established Greek players to benefit from their local market expertise
Good to know:
The establishment of a stable and favorable tax framework for foreign investors, including reduced tax rates on rental income and capital gains, has significantly improved the attractiveness of the Greek market.
Trends Shaping the Future of Greek Commercial Real Estate
The commercial real estate market in Greece is evolving rapidly, influenced by global trends and local specifics. Understanding these dynamics is essential to seize the best investment opportunities.
Digitalization and Innovation at the Core of Strategies
- Smart office spaces, equipped with advanced technologies to improve efficiency and employee well-being
- Shopping centers integrating digital experiences to attract and retain customers
- Asset management solutions based on IoT and artificial intelligence to optimize building performance
According to a study by Deloitte Greece, 65% of commercial real estate owners plan to significantly increase their investments in smart building technologies by 2026.
Sustainability and Energy Efficiency: A Growing Imperative
- The increase in LEED and BREEAM certifications for new commercial developments
- Energy renovation of existing assets to meet environmental standards
- Integration of renewable energy technologies into real estate projects
In 2024, the number of certified sustainable commercial buildings in Greece increased by 30% compared to the previous year, according to data from the Greek Green Building Council.
The Rise of Mixed-Use Projects
- The Hellinikon project in Athens, an €8 billion development on the former airport site, blending residential, office, retail, and green spaces
- Urban complexes integrating hotels, coworking spaces, and luxury boutiques in downtown Athens and Thessaloniki
These mixed-use projects recorded occupancy rates 15% higher than the market average in 2024, according to a Knight Frank analysis.
Adapting to Post-Pandemic Tourism
- Developing “bleisure” accommodations, combining workspaces and relaxation areas to meet the demand of digital nomads
- Investing in high-end resort properties offering more privacy and personalized services
- Repurposing commercial assets in urban areas to create unique experiences for tourists
According to forecasts from the SETE Institute, the luxury tourism segment in Greece is expected to grow by 10% annually until 2028, offering significant opportunities for high-end commercial real estate.
Good to know:
The diversification of Greek tourism, beyond the traditional “sun and beach” model, into segments like health, cultural, and gastronomic tourism, opens new prospects for specialized commercial real estate.
Commercial real estate in Greece offers fertile ground for investors seeking attractive yields in a European market undergoing a renaissance. The combination of a growing economy, a robust tourism sector, and an increasingly favorable regulatory framework creates a conducive environment for investment. However, as with any emerging market, a cautious and well-informed approach remains essential to successfully navigate the waters of Greek commercial real estate.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
