Thessaloniki retail rents may jump 75% due to train line

Retail property owners in the heart of northern Greece's Thessaloniki could hike rents by up to 75% after the completion of the underground metro train line in the city, said NAI Hellas.

In its Greece retail market report, NAI Hellas said that rents in Egnatia street, the city's main commercial stretch, are at currently at historical lows but that could soon change.

"It is common practice at the moment for new lease agreements concerning retail units on (Egnatia) street to include a clause for an upward review of the rent by 70% to 75% after the completion of metro line works,," it said.

Construction of Thessaloniki's train line, that will stretch over nearly 10 kilometers, is currently taking place and is expected to be operational in 2020 afters years of delays.

A broader look at the city, Greece's second largest, shows a gradual improvement in the high street retail market in 2016 with Tsimiski Street welcoming a number of new stores amidst monthly rental costs of between 120 to 140 euros per square meter.