The Greek professional property market is in for a tough year in 2016, according to Knight Frank global real estate consultancy’s annual forecasts, which chart conditions in the European market using a weather map of investor sentiment for individual markets.
Indicating the difficult state of the local market, Knight Frank forecasts “rain” for three property categories in Greece, namely office buildings, shopping centers and logistics.
This adverse forecast for the sector concurs with estimates by most local professionals in the industry. In a recent analysis Babis Charalampopoulos, a consultant to Solum Property Solutions, said that the prospects of the sector remain negative for yet another year. In the office market in particular, the dominant trend is for enterprises to move to smaller, more economical spaces. Alternatively, they are asking to renegotiate the rental rates for their existing offices.
There is a similar trend in terms of retail stores, with the exception of shops housed in major malls that are still showing signs of potential growth. Charalampopoulos added that stores offering private-label merchandise have a comparative advantage over those that sell expensive goods or are located in secondary spots, where there an increase in empty spaces has been observed.
Notably, even major retail chains are trying to renegotiate their rental rates and will not hesitate to move elsewhere unless they secure the discount they are hoping for.