Office yields seen as steady

The office property market in Athens is expected to offer yields of between 7.0 and 7.5 percent in the first quarter of 2010, roughly unchanged from 2009 levels, according to figures provided by property consultant and valuer Danos. Danos said in a six-monthly report made public yesterday that the supply of prime office space on major thoroughfares, such as Vouliagmenis, Kifissias and Syngrou, rose in 2009, putting downward pressure on prices. «Following the international financial crisis, the prevailing uncertainty has affected business confidence and economic activity, forcing companies to renegotiate their existing office rents or to consider smaller units,» Danos said in the report, describing prevailing market conditions. Investors have been putting off decisions in the real estate sector as economic uncertainty regarding the government’s fiscal woes has weighed on business sentiment hurt by the global crisis, industry sources pointed out.

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