Commercial property indices - 2017 H2
14/06/2018 - Press Releases
1. Office Indices
Office price index
According to provisional data, in 2017, nominal prime office prices increased on average by 1.7% relative to 2016 for the country as a whole, against a marginal increase of 0.2% in 2016. Broken down by region, in 2017, nominal prime office prices increased by 2.1% in Athens, 1.0% in Thessaloniki and 1.5% in the rest of Greece.
In the second half of 2017, nominal prime office prices for the country as a whole increased significantly by 3.8% compared with the first half of 2017 (provisional data). The corresponding prices remained unchanged in the second half of 2016 compared to the previous half-year, whereas in the first half of 2017 a marginal decrease of 0.1% was recorded. According to regional data, in the second half of 2017, nominal prime office prices increased by 4.0% in the greater Athens area, 2.6% in Thessaloniki and 3.8% in the rest of Greece, compared with the first half of 2017.
Office rent index
In 2017, office rents for the country as a whole increased οn average by 1.0% in nominal terms (provisional data). The corresponding average annual rate of increase was 0.9% in Athens, 0.7% in Thessaloniki and 1.2% in the rest of Greece.
In the second half of 2017, office rents for the country as a whole increased by 1.2% compared with the first half of 2017 (provisional data), whereas the respective rates of change were -0.3% for the second half of 2016 and 0.6% for the first half of 2017.
2. Retail indices
Retail price index
According to provisional data, in 2017, nominal prime retail prices increased on average by 1.6% relative to 2016 for the country as a whole, recording a positive annual rate of change for the first time since the initial publication of the index in 2010. Broken down by region, in 2017, nominal prime retail prices increased by 1.4% in Athens, 1.0% in Thessaloniki and 2.2% in the rest of Greece.
In the second half of 2017, nominal prime retail prices increased by 1.1% compared with the previous half-year, for the country as a whole (provisional data). The corresponding rates of change were 0.1% in the second half of 2016 and 1.0% in the first half of 2017. According to regional data, in the second half of 2017, nominal prime retail prices increased by 1.0% in the greater Athens area, 0.8% in Thessaloniki and 1.4% in the rest of Greece, compared with the first half of 2017.
Retail rent index
In 2017, retail rents declined on average by 1.1% for the entire country in nominal terms (provisional data). The corresponding average annual rate of decline was 0.9% in Athens, 1.2% in Thessaloniki and 1.4% in the rest of Greece.
In the second half of 2017, retail rents for the country as a whole marginally declined by 0.4% compared with the first half of 2017 (provisional data). In the second half of 2016, rents remained unchanged, whereas in the first half of 2017 a respective decline of 0.9% was recorded.
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 and rent levels of prime investment property. 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.