Commercial real estate: Increasing demand, competitive returns

The commercialized existent property market, and successful peculiar logistics, prime offices and big-box retail, appears to beryllium successful a transitional stage.

Yields are falling, indicating accrued assurance and maturity, while transaction strength is increasing, reflecting the increasing request for a constricted fig of prime properties.

At the aforesaid time, contempt the gradual convergence with the remainder of Europe, Greece continues to connection higher yields compared to mature markets, an constituent that maintains concern interest.

The data, which comes from Savills Research and was made nationalist successful the discourse of a caller presumption by Premia REIC to investors, reflects the alteration successful the main marketplace sizes successful some yields and rents and transaction volumes.

The representation that emerges is of a marketplace that is moving towards little yields and higher rents, without nevertheless losing the vantage of returns implicit different European markets.

In examination with different European markets, Greece shows a premier logistics yield of 6.3%, compared to 5.5% successful Portugal, 4.75% successful France and 4.4% successful Germany. This means that the Greek marketplace offers a yield that is 0.80 percent points higher than the Portuguese market, 1.55 points higher than the French marketplace and 1.90 points higher than the German market.

The representation is akin for prime offices successful Athens. In 2025, yields are acceptable astatine 5.8% for the bluish suburbs marketplace and 5.65% for the metropolis halfway market, while the corresponding rents scope 35 and 34 euros per sq m per month. At the level of the wide market, Athens shows a yield of 5.26%, while London City is astatine 5.25%, Barcelona astatine 4.65%, Amsterdam astatine 4.4%, Munich astatine 4% and Paris besides astatine 4%.

In big-box retail, the representation is much stable. In terms of transactions, the marketplace shows strong fluctuations from year to year.

In detail, successful logistics, transactions amounted to 30 cardinal successful 2018, 33 cardinal successful 2019, 150 cardinal successful 2020, 90 cardinal successful 2021, 277 cardinal successful 2022, 220 cardinal successful 2023, 85 cardinal successful 2024 and 30 cardinal euros successful 2025. The highest was recorded successful '22 and a diminution followed, with the past year returning to 2018 levels.

In offices, the corresponding transaction volumes were 125 cardinal successful 2018, 395 cardinal successful 2019, 230 cardinal successful 2020, 240 cardinal successful 2021, 275 cardinal successful 2022, 370 cardinal successful 2023, 455 cardinal successful 2024 and 823 cardinal euros successful 2025. This is the class with the largest publication to the total marketplace volume, but besides the 1 that provides the main impetus successful 2025.

In big-box retail, transactions amounted to 20 cardinal successful 2018, 165 cardinal successful 2019, 65 cardinal successful 2020, 50 cardinal successful 2021, 180 cardinal successful 2022, 145 cardinal successful 2023, 177 cardinal successful 2024 and 610 cardinal euros successful 2025. The astir pronounced alteration is besides recorded successful the past year, when the class moves to a intelligibly higher scale.

Based connected the above, the summation successful total transaction volume successful 2025 results chiefly from offices and big-box retail, while logistics is moving little compared to erstwhile years.