Office Rent Prices in Europe: Where Athens Stands

Athens maintains low activity with availability remaining stable at 10%. According to Colliers International research, rents reach €35/sq.m. with slight upward trends. Despite stability, demand focuses on modern, upgraded spaces in the city center, while secondary areas require more incentives to attract tenants. The highest rental prices are recorded in London – City (€97.4/sq.m.), Milan (€62.5/sq.m.), and Paris (€68.0/sq.m.), whereas more affordable markets include Athens and Budapest (€25.5/sq.m.). In terms of availability, Berlin (7.9%), Madrid (9.6%), and Stockholm (8.2%) show balanced conditions, while Vienna and Cologne maintain percentages below 4%, indicating high space absorption. Overall office construction has been decreasing since mid-2022. Significant declines have been noted in Madrid, London (Mid Town), Bristol, and Gdansk, whereas areas like Antwerp, Johannesburg, and Ljubljana show increased construction activity. Fluctuations in demand and investments continue as EMEA markets recover at different speeds. The fourth quarter of 2024 saw a 48% increase in annual space absorption, while over 50% recorded a decline. Overall absorption rose by 2.7% annually. Notable recovery was seen in Paris’ La Défense, Amsterdam, Berlin, London (Southbank), and Bratislava. Generally, demand remains weak, favoring tenant-friendly conditions in 42% of EMEA markets. Neutral markets are expected to rise from 34% today to 35% by Q4 2025, while owner-favoring markets will grow from 24% to 25%. Tenants continue to upgrade their spaces by exploiting early lease termination options, focusing on modern buildings in prime locations. Pre-leasing remains high due to strong demand for quality central spaces. Construction activity and project completions have shown a downward trend in the EMEA region since mid-2022, continuing into Q4. However, significant variations exist between markets. Major declines were observed in Madrid, London (Mid Town), Bristol, and Gdansk, while increased construction activity was reported in medium-sized markets like Antwerp, Johannesburg, Ljubljana, and Lublin. The overall vacancy rate stands at 8.9%, slightly above the long-term average of 8.5%. Markets with particularly low vacancy rates (below 4%) include Vienna, Cologne, and Eindhoven. Conversely, Rome, London (Kings Cross), Luxembourg, Stuttgart, The Hague, Antwerp, and Oslo maintain availabilities below 7%. Rental increases are driven by limited supply of quality spaces, with Colliers’ premium office rent index showing strong growth since mid-2021. In Q4, an annual increase of 6.4% and quarterly rise of 2.0% were recorded. Significant rent hikes occurred in Eindhoven and Edinburgh, while decreases were seen in Cologne, Porto, and Poznan. Investment recovery in offices improved asset values, closing 2024 with €48 billion in transactions, up 4.7% from 2023 but still 53% below the 2019-2023 average. Although the office sector’s share of total transactions dropped from nearly 45% in 2019 to under 20% in 2024, steady transaction flow was observed in H2. Price corrections appear stabilized, with some capital value increases due to rising rents in premium spaces and yield compression in H2 2024. Expectations for further rent increases place the sector on a recovery path for 2025. Large transactions continued despite challenges, including four German office buildings sold above €100 million in Q4, Poland’s largest deal with Warsaw Unit’s acquisition for €280 million, and Greycoat’s purchase of 90 High Holborn for $180 million in the UK. Investors continue seeking redevelopment or repurposing opportunities, such as ECE acquiring a Copenhagen building for conversion into a luxury hotel.