Commercial property indices - 2016 H1
02/11/2016 - Press Releases
1. Office Indices
Office price index
According to provisional data, in the first half of 2016 nominal prime office prices for the country as a whole marginally increased by 0.2%, compared with the second half of 2015. A marginal positive trend in prime office prices is recorded for the third semester in a row (2015 H1: 0.2% and 2015 H2: 0.1%). More specifically, in the first half of 2016 nominal prime office prices declined by 0.5% in the greater Athens area compared with the second half of 2015, whereas in Thessaloniki and in the rest of Greece prices increased by 1.4% and 0.8% respectively.
In 2015 as a whole, the average rate of change in nominal prime office prices is estimated at -0.1% for the entire country compared with 2014, whereas the corresponding average annual rates were -0.2% for Athens, -5.2% for Thessaloniki and 1.2% for the rest of Greece (revised data).
Office rent index
In the first half of 2016, office rents for the country as a whole increased by 0.7% (provisional data) compared with the second half of 2015, against a decrease of 0.1% in the first half of 2015 and 1.2% in the second half of 2015.
2. Retail indices
Retail price index
According to provisional data, in the first half of 2016 prime retail prices, for the country as a whole, decreased by 0.8% in nominal terms compared with the second half of 2015. An increase in prices was recorded in the second half of 2015 (0.4%), whereas in the first half of 2015 prices had dropped by 3.6%. More specifically, in the first half of 2016 nominal prime retail prices decreased by 1.3% in Athens and 1.1% in Thessaloniki compared with the second half of 2015, whereas a marginal increase of 0.2% was recorded in the rest of Greece.
Finally, according to revised data, nominal prime retail prices declined by 3.5% in 2015 as a whole for the entire country compared with 2014, whereas the corresponding annual decline was 2.6% for Athens, 2.5% for Thessaloniki and 5.3% for the rest of Greece.
Retail rent index
In the first half of 2016, retail rents for the country as a whole marginally declined by 0.3% (provisional data) compared with the second half of 2015, a rate of decline significantly weaker than the corresponding rates in the previous half-years (2015 H1:-2.3% and 2015 H2: -3.0%).
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 under “Real Estate Market Analysis”.
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.