Commercial property indices: 2019 H2

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Commercial property indices: 2019 H2 18/06/2020 - Press Releases

1. Office Indices

Office price index

According to provisional data, in 2019 nominal prime office prices for the entire country increased on average by 4.2% relative to 2018, against an increase of 6.5% in 2018. Broken down by region, in 2019 nominal prime office prices increased on average by 5.1% in Athens, 2.7% in Thessaloniki and 3.5% in the rest of Greece.

In the second half of 2019, nominal prime office prices increased by 1.7% at country level compared with the first half of 2019 (provisional data). The corresponding rates of increase were 2.0% in the second half of 2018 and 2.3% in the first half of 2019 compared with the previous half-year (revised data). According to regional data, in the second half of 2019 nominal prime office prices increased by 2.6% in the greater Athens area, 1.6% in Thessaloniki and 0.8% in the rest of Greece, compared with the first half of 2019.

Office rent index

In 2019, office rents for the entire country increased οn average by 2.6% in nominal terms (provisional data). Broken down by region, the corresponding average annual growth rates of rents were 2.8% in Athens, 3.5% in Thessaloniki and 2.1% in the rest of Greece.

In the second half of 2019, office rents for the entire country decreased marginally by 0.1% compared with the first half of 2019 (provisional data). The respective rates of change were 0.3% in the second half of 2018 and 2.4% in the first half of 2019 (revised data).

1. Retail indices

Retail price index

According to provisional data, in 2019 nominal prime retail prices increased on average by 7.0% relative to 2018 for the country as a whole, against an increase of 4.6% in 2018. Broken down by region, in 2019, nominal prime retail prices increased, on average, by 8.0% in Athens, 9.4% in Thessaloniki and 4.8% in the rest of Greece.

In the second half of 2019, nominal prime retail prices increased by 1.9% compared with the previous half-year for the country as a whole (provisional data). The corresponding rates of change were 3.5% in the second half of 2018 and 4.2% in the first half of 2019 (revised data). According to regional data, in the second half of 2019, nominal prime retail prices increased by 0.2% in the greater Athens area, 6.7% in Thessaloniki and 3.4% in the rest of Greece, compared with the first half of 2019.

Retail rent index

In 2019, retail rents for the entire country increased on average by 1.3% in nominal terms (provisional data). Broken down by region, the corresponding average annual growth rates were 0.3% in Athens, 1.1% in Thessaloniki and 2.9% in the rest of Greece.

In the second half of 2019, retail rents for the entire country increased by 0.6% compared with the first half of 2019 (provisional data). In the second half of 2018, the retail rents decreased by 0.5%, whereas in the first half of 2019 rents increased by 1.2% compared with the previous half-year (revised data).

Detailed tables on retail and office prices and rents by geographical area are published in the 'Bulletin of Conjunctural Indicators' (Tables ΙΙ.9, ΙΙ.10, ΙΙ.11 and ΙΙ.12) and are also available on the Bank of Greece website under 'Real Estate Market Analysis' section.

Source: Bank of Greece

*Provisional data.

Notes:

1. For the purposes of monitoring and analysing the commercial property market, the Real Estate Market Analysis Section of the Bank of Greece compiles office and retail property indices, using data from credit institutions (Bank of Greece Executive Committee Act 23/26.07.2013) and Real Estate Investment Companies - REICs (Bank of Greece Executive Committee Act 9/10.01.2013) operating in Greece, as well as data from other sources, e.g. private real estate consultants, portfolio managers, real estate developers, real estate brokers and public sector entities. The data are collected on a biannual basis and include valuations, rents, transactions, investments and yields of commercial property and commercial property asset portfolios.
2. Indices are published on a biannual basis (base year: 2010). They concern office and retail uses and refer to price levels of prime investment property and rent levels of the prime and upper secondary market. It should be noted that price indices are valuation-based and are therefore expected to show some lag, especially in cases of negative changes. Furthermore, values tend to reflect sentiment and market expectations at the moment of the valuation, especially in periods of limited transactions.
3. Any differences between levels and percentage changes in the Table are due to rounding.