Increased interest for hotels in former office buildings in Athens

Due to the limited availability in new buildings

According to real estate consultants there is an increased investors’ interest in converting former office buildings in Athens to hotels.

“The activity in the tourist industry places empty office buildings in to the radars of investors”, says in its recent analysis for the office market in the first quarter of 2017, the Proprius consultancy company which works for the Greek market with Cushman & Wakefield International.

As far as the Greek office market is concerned, the company predicts stability in rental prices with slightly upward trends due to the lack of new high-end facilities. Given even the limited availability in new buildings, companies that want to rent space at this time should expect to be able to pay for the necessary additional conversions according to their needs.

In terms of demand, the analysis of Proprius expects a gradual improvement, but slowly until a climate of greater economic stability is restored. However, at this point, the greatest interest is centered on the Central Business Axis, Vasilissis Sofias Boulevard and Kifissias Avenue, as prospective tenants continue to take advantage of the opportunity of low rents to upgrade their working environment. Thus, in the region of the Syntagma, prices are on average around 17 Euros per sq m. per month has remained stable in the last year until March 2017, while in Kifissias Avenue it reaches 15 Euros per square meter, however, it rose by 7.1% compared to last year. The rents in Piraeus have risen significantly, reaching 11 Euros per sq m. (+ 22.2% according to the survey), due to the increased overall investment interest.

In the case of investors who made purchases during the first quarter, real estate investment companies are the ones that show the greatest mobility in this case as well, especially Grivalia Properties AEAP, Intercontinental International AEAP and Trastor SAEAP , which announced new investments within the first quarter.

(Click to Enlarge)