Outlook on office market improves

Athens office space

The office market in Greece’s two largest cities, Athens and Thessaloniki, are expected to see increased demand due to limited supply and a drop in unemployment levels, said broker NAI Hellas.

The office market in these cities was severely affected by the country’s debt crisis that erupted in late 2009 with vacancy rates for grade A office space in prime locations rising by some 20% and rental levels dropping by some 40%, said NAI Hellas.

MORE: NAI Global - 2016 Commercial real estate market report, Europe & Middle East

“The market during the last two years appears to have stabilised and is expected to gradually recover given the projections for GDP growth and rise in employment by 2017,” the report added.

Greece’s economy is seen ending an eight year slump in 2017, according to the Greek government and international creditors who foresee expansion of 2.7%.

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