Greece Property Market Data | Cushman & Wakefield

The Greek economy has proved relatively resilient compared with other European markets with positive GDP growth over the first quarter and unemployment at more than a decade low and a further boost expected from a positive tourist summer season providing a supportive outlook for the economy despite increased headwinds. Leasing activity in the office sector was robust in the first half of 2022 with prime rents remaining stable. Within the logistics sector occupier demand continues to be particularly strong as e-commerce activity triggers increased rates of absorption of quality space with rents up on the end of 2021 and investor demand supporting yield compression. In the retail sector prime rents remain stable, although retail turnover and footfall remains positive with growing interest from international brands entering the market.

 

Industrial Property Greece

The projections for the new year, despite the Ukrainian crisis, are positive and it is expected that the economy will grow by 3.1% revised downwards. The reforms and investments, implemented under the Recovery and Resilient Plan, as well as the expected increase of tourism and domestic demand, is expected to create a favorable economic environment and attract foreign investment. The outbreak of the Ukrainian crisis has fueled uncertainty, increased price levels and volatility, accelerated inflation, and aggravated supply chain disruptions. However, unemployment registered at 12.1 % in June a 12-year low and industrial turnover increased this May by 53.1% compared to May 2021, both thanks to the full recovery of economic activity after two years of the Covid pandemic, and to very high product prices. Consumer Price Index picked up more pace in May, rising by 12.1 % year-on-year. Industrial output rose 8.4% year on year in working-day adjusted terms in June and among major sectors, the electricity supply index logged a double-digit growth of 13.2% at the same time, monthly increase in industrial production advanced to 8% from 4.5%.

 

 

Office Property Greece 

After rebounding 8% in 2021, real GDP rose again in Q1 2022 by 2.3% boosted by private consumption (+2.5% q/q) and investment (+3.7% q/q). The unemployment rate fell back to 12.1% in June 2022 to a 12-year low with the number of unemployed people totaling 572k, down 18.6% from June 2021. The risks of recession seem to be more limited than in the rest of Europe on the back of the prospects of an excellent summer tourist season. Risks are concentrated around the upturn in bond yields and inflation which rose above 10% in May (harmonized CPI of 10.5% y/y). The government projects growth of 3.1% this year, picking up to 4.8% in 2023. The medium-term prospects of domestic economic activity remain positive despite the geopolitical headwinds clouding the economic outlook. The investment injection from the RRF funds, accompanied by a reliable government plan, is expected to support the economic recovery in the coming years. The European Union’s so-called enhanced surveillance framework for Greece’s economy, ends after 12 years, allowing the country greater freedom.

 

 

Retail Property Greece

After rebounding 8% in 2021, real GDP rose again in Q1 2022 by 2.3% boosted by private consumption (+2.5% q/q) and investment (+3.7% q/q). The unemployment rate fell back to 12.1% in June 2022 to a 12-year low with the number of unemployed people totaling 572k, down 18.6% from June 2021. The risks of recession seem to be more limited than in the rest of Europe on the back of the prospects of an excellent summer tourist season. Risks are concentrated around the upturn in bond yields and inflation which rose above 10% in May (harmonized CPI of 10.5% yoy). The government projects growth of 3.1% this year, picking up to 4.8% in 2023. The medium-term prospects of domestic economic activity remain positive despite the geopolitical headwinds clouding the economic outlook. Greek economic sentiment indicator rose to 105.1 points in May, however remained below last year’s level (108.6 points), according to the Foundation for Economic and Industrial Research, IOBE. Business expectations in Greece improved mainly in the industrial and retail commerce sectors and less in the services sector, while in the construction sector expectations dropped strongly.

 

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