ECONOMY

Thessaloniki property prices stable

The Thessaloniki property market generally shows the same features as that of the Athens market. The overall trend favors stability, while new names are jostling for the use of commercial spaces. The housing market remains unchanged, following a two-year rally, as the interest of potential buyers turns to the western part of the city. At the same time, the commercial property market is dominated by the penetration of new brands through major shopping centers and department stores, although in the city center high-street shops maintain their value due to high demand and minimal supply. Unlike the retail sector, which is in transition, the office market is also stable, with the city center being the top choice for enterprises. The old seafront in the city center maintains high price levels, with sales of at 6,000 euros per square meter, while leasings range around 10 euros/sq.m., according to data by Danos and Associates. The biggest returns are to be found close to universities, with rates at 8 euros/sq.m. Developing residential areas in eastern Thessaloniki, such as in Aghios Ioannis and Pylea, are seeing sale prices reaching 1,700-2,500 euros/sq.m. Western Thessaloniki maintains its lead in housing development due to the low prices of plots. Sale prices range between 1,300 and 1,500 euros/sq.m., and leasings between 3 and 5 euros/sq.m. Major commercial complexes have gained most of the attention: Opposite the IKEA store in eastern Thessaloniki there are Florida 2 and 3 and Hondos Center (one of the biggest in Greece), along with the Toyota Lexus showroom. At Pylea, the Mediterranean Cosmos mall has been in operation since end-2005. The western part of the city is dominated by the City Gate shopping center that covers 38,450 sq.m. and includes a Carrefour supermarket, stores, restaurants and entertainment spots. In the city center, leasing rates can range from 60 to 130 euros/sq.m. and shops’ good-will fees are no more than 5,000 euros/sq.m. Tsimiski Street is still the commercial heart of Thessaloniki, with rates ranging from 80 to 130 euros/sq.m. Mitropoleos Street shops peak at 70 euros/sq.m. with their good-will fees going up to 2,500 euros/sq.m. Eastern Thessaloniki does not see lease rates over 50 euros/sq.m. and sales do not exceed 7,500 euros/sq.m., while on the other side of the city leasings come to 35 euros/sq.m. and sales up to 4,500 euros/sq.m.