Ermou Street Leads Greece’s Retail Market with Rising Rents in 2024

Ermou Street in Athens continues to dominate Greece’s retail landscape, maintaining its position as its most expensive retail hub.

According to the latest data from the Bank of Greece (BoG), rental prices for commercial spaces on Ermou Street remained elevated in 2024, underscoring the ongoing demand for prime retail real estate in the heart of Athens.

Nationwide Retail Rental Trends

Nationwide, nominal rents for high-end retail spaces increased by 4.8% in the first half of 2024 compared to the second half of 2023. The growth was most pronounced in Athens, where rents surged by 6.4%, while Thessaloniki saw a more modest increase of 3.9%. Other regions of Greece recorded a smaller uptick of 2.1% during the same period.

Looking back to 2023, the average annual growth rate of nominal rents for premium retail spaces across Greece was 7.0%, with Athens experiencing the highest increase at 8.6%. Thessaloniki followed closely at 7.2%, while other regions saw a more modest rise of 4.0%.

In the first half of 2024, commercial rents continued to rise, with Athens leading the way. These increases reflect ongoing demand for prime retail spaces, particularly in central locations.

Prime Retail Streets and Rent Analysis

Research from Cushman & Wakefield Proprius, a leading commercial real estate agency, indicates that rents on Athens’ prestigious Ermou Street reached €290 per square meter per month in the third quarter of 2024. This figure remained consistent with the same period in 2023, cementing Ermou Street’s reputation as one of the most expensive retail locations not just in Athens but globally. The prime yield remained stable at 5.25%, matching the previous year’s figure.

Meanwhile, other prime retail locations in Athens saw varying rental prices. Kolonaki recorded an average of €110 per square meter in Q3 2024, with a prime yield of 6.2%. Glyfada’s rents were slightly higher at €150 per square meter, with a prime yield of 6%.

In Piraeus, rents for commercial spaces increased to €100 per square meter monthly, with a steady prime yield of 6%. Meanwhile, Thessaloniki saw average rents of €150 per square meter, maintaining a prime yield of 6%, while Patras saw lower rents averaging €88 per square meter per month.

Retail Developments in Athens

Athens is also seeing a surge in retail developments, with new shopping centre projects expected to add 110,000 square meters of retail space. This new pipeline reflects the growing demand for high-quality retail spaces and the continuing strength of Athens’ retail market.

In summary, Ermou Street remains the standout in Greece’s retail market in 2024, with rents continuing to climb. The overall trend of rising rents across the country showcases the resilience and growth of Greece’s retail sector.

Source: pagenews.gr