Prime rents in Athens rose 4.3 percent last year, below European averages, but demand is expected to pick up amidst a return to economic growth, said Savills.
In a report on European offices, Savills said Athens is the only European city where the service sector has not fully recovered and that “demand for quality business space is growing and prime rents rising" as economic growth over the next four years will average out to 2 percent per year.
On a chart put together by Savills (see above), Athens is the cheapest European city but Warsaw offers value for money while Madrid features in both of these categories.
The price of property in Greece has fallen by more than 40 percent since 2010, prompting bargain hunting among investors. However, investment activity in the broader sector has yet to pick up with most deals taking place focusing on a house by the beach, particularly among non EU national that want to secure the investment visa offered by the Greek government.
Rental growth for in prime central business districts in Europe rose 6% last year, added the report.