Office rents drop in Athens as remote working changes the rules (video)

The price of renting office space in Greece dipped in the first half of the year amidst growing concerns in the sector that a global shift to remote working will keep office buildings empty in a post-Covid world.

Data released by the Bank of Greece, the country's central bank, on Thursday shows that the price of renting office space dipped 1.6 percent after rising steadily in the last few years. The steepest drop was recorded in Athens where rent costs dipped 2.7 percent on an annual basis.

The drop comes as Greece suffers one of Europe's steepest recessions in 2020 due to the pandemic. The switch to home working and improved digital infrastructure introduced by many Greek companies in recent months is likely to result in further presures on the price of office rents, as expected by many in cities such as London and Paris.

The stock of office buildings in Athens is mostly made up of older assets, due to a construction freeze that resulted from the country's ten year economic crisis. This kept the number of new, or renovated, office buildings hitting the market recently at low levels.

Source: Bank of Greece