Office Rentals Soaring to New Heights in Athens

The office market in Athens has witnessed a notable decline in vacancy rates over the past two years due to limited availability of certified ‘green’ buildings and increasing demand for high-quality, sustainable workspaces. According to new research from Savills Hellas, this trend is particularly evident in Category A offices, where absorption has risen across most areas of Athens. Well-located Category B offices, especially those near metro stations and major roads, continue to attract small and medium enterprises with space needs ranging between 250–500 sqm. The Northern Suburbs remain one of the key business hubs in Athens, recording the lowest vacancy rates in the market. In 2024, availability for Category A and B offices was approximately 7%, reflecting strong tenant and investor demand. The exceptional business activity in the area is bolstered by proximity to major transport routes like Attiki Odos and Kifissias Avenue, making it highly attractive to companies. Limited supply of Category A offices has contributed to low vacancy rates as demand for modern, environmentally sustainable buildings exceeds supply. Rents in the area have increased by 15.4% annually, surpassing €30/sqm/month in some cases. The city center continues to see strong demand from investors for well-located office spaces, with vacancy rates at 8% for both Category A and B offices. Demand focuses on renovated and environmentally upgraded buildings, particularly those constructed in the 1960s and 1970s, offering a mix of prime location and modern amenities. In 2024, rental prices rose by 10.7%, with high-quality offices reaching €31/sqm/month. The Southern Suburbs have shown significant demand growth, with vacancy rates dropping below 9% in 2024. Major developments like Elliniko have boosted interest, while ongoing infrastructure improvements enhance accessibility. High-quality rents on Sygrou Avenue increased by 8.3% annually, reaching €26/sqm/month, while other areas saw a 9.1% increase. Piraeus experienced a significant market rebound in 2024, with average availability for Category A and B offices decreasing to 11%. Strategic positioning near the port, combined with infrastructure improvements and increased investment activity, have contributed to this positive trend. High-quality rents rose by 5.2%, attracting SMEs and maritime, tech, and professional services firms. The Western Suburbs continue to underperform compared to other areas, with vacancy rates reaching about 19% for Category A and B offices. This is due to the region’s inability to attract high-profile tenants and investors, mainly because of lower aesthetics and limited connectivity. Despite challenges, the area presents future growth prospects through renovations and changes in building use. However, significant infrastructure investments are needed to unlock its full potential. For 2025, vacancy rates in the main office markets of Athens are expected to remain low due to strong demand for high-quality, sustainable workspaces. Economic conditions, interest rates, and company expansion plans will determine future demand and availability. Additionally, as secondary and regional areas gain ground, vacancy rates there are expected to decrease if infrastructure improves and large investment projects are implemented.