New leases for office space in Athens posted a 29 percent increase last year compared to 2015, as enterprises tried to make the most of the considerable drop in rents over the last few years.
According to a report by BNP Paribas Real Estate, represented in Greece by Danos & Associates, a total of 67,000 square meters in office space was rented in 2016, up from 52,000 sq.m. in 2015, as demand strengthened significantly.
Analysts attribute that development not only to the attractive rental rates but also to the shortage of modern office buildings, given the complete absence of any investment plans in the office property market in recent years. In view of the shortage of quality space, a number of enterprises have leased offices, in some cases earlier than actually required, rather than buying, as the economic uncertainty has been prolonged due to the government’s ongoing negotiations with the country’s creditors.
This was also reflected in the reduction in the stock of empty office space, whose index dropped from 12 percent in 2015 to 10 percent last year, while investment in office spaces fell 25 percent year-on-year.