The rental rates of stores in Attica appear to be close to bottoming out as the first signs of recovery are emerging on the most popular shopping streets in the capital, while the stock of empty spaces is gradually decreasing.
According to a survey by Colliers International, the average monthly cost of renting a store in Athens is 130 euros per square meter, with the property consultancy company’s analysts estimating that lease rates will drop gradually over the next 12 months.
In relation to the rest of Europe, store rental rates in Athens are particularly competitive, trailing those of other countries in the European south: In Madrid and Barcelona the average monthly rate stands at 240 and 220 euros/sq.m. respectively, while in Rome it is 570 euros/sq.m. In Istanbul the average monthly lease rate is 145 euros/sq.m.
However, according to sector professionals, the decline in store rental rates now only concerns secondary streets and areas of low commercial value. This is confirmed by records compiled by the Bank of Greece, as, according to data published a few days ago for the first half of this year, rates fell by just 0.3 percent compared to the second half of 2015.
Retail chains agree that the most popular locations in the capital will be filled in the coming months, so this is seen as an ideal time for getting a foothold in the market as rents remain exceptionally low, having declined by some 40 to 60 percent since the beginning of the financial crisis.