Commercial property indices: 2018 H1
06/12/2018 - Press Releases
1. Office Indices
Office price index
According to provisional data, in the first half of 2018 nominal prime office prices for the entire country increased by 3.5%, compared with the second half of 2017. Over the same period, nominal prime office prices increased by 4.6% in the greater Athens area, while milder increases were recorded in both Thessaloniki (0.4%) and the rest of Greece (2.9%) compared with the second half of 2017.
According to revised data, in 2017, the average annual growth rate of nominal prime office prices is estimated at 1.6% for the entire country, whereas the corresponding average rates of change were 1.8% for Athens, 0.5% for Thessaloniki and 1.7% for the rest of Greece.
Office rent index
In the first half of 2018, office rents for the entire country increased by 1.3% compared with the previous half year (provisional data). According to revised data, the respective changes were 0.8% in the first half of 2017 and 1.0% in the second half of 2017, whereas for 2017 office rents increased at an average annual rate of 1.2%.
2. Retail indices
Retail price index
According to provisional data, in the first half of 2018, prime retail prices for the entire country increased by 2.1% in nominal terms, compared with the second half of 2017. Over the same period, nominal prime retail prices increased by 4.0% in Athens, decreased by 0.8% in Thessaloniki and remained unchanged in the rest of Greece, compared with the second half of 2017.
Finally, according to revised data, in 2017, nominal prime retail prices increased by
1.7% for the entire country, whereas the corresponding average rates of change were 1.5% for Athens, 1.2% for Thessaloniki and 2.1% for the rest of Greece.
Retail rent index
In the first half of 2018, retail rents for the entire country marginally declined by 0.2% compared with the previous half-year (provisional data). According to revised data, the respective decline rates were 0.8% in the first half of 2017 and 0.4% in the second half of 2017, whereas for 2017 retail rents declined at an average annual rate of 1.0%.
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 in the “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 mainly 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, especially in periods of limited transactions, the values tend to reflect sentiment and market expectations at the moment of the valuation.
3. Any inconsistencies between levels and percentage changes in the Table are due to rounding.