A surge of interest from international brands to invest in Greece has been recorded in the first quarter of 2024, as reported by real estate services firm Cushman & Wakefield Proprius.
The country has seen a flurry of activity with the expansion of global retail chains. Pepco, the discount retail chain, has notably opened its 30th Greek store in Kalamata, signaling a robust growth strategy.
The upscale Glyfada district welcomed several high-profile store openings, including Collective’s new boutique, Puma’s flagship store, and a Georg Jensen jewelry outlet. River West shopping center in Athens added Guess, Starbucks, and Nike West Athens to its retail mix.
The retail landscape also saw the addition of Goody’s F&B in Rhodes and Kiko Milano in Nea Smyrni. Sinsay, the fast-fashion brand, made its Attica debut with stores in Aigaleo and Piraeus, with plans for further expansion in Smart Park, Top Parks Piraeus, and Top Parks Patras.
The Mall Athens now features a Salomon store, and Golden Hall boasts a new Funky Buddha outlet. The Bagatelle group expanded its presence with a second location at Astir Marina, and Folli Folie secured a prime spot on the bustling Ermou Street.
A new commercial park by Trade Estates is underway in Heraklion, Crete, spanning 7,885.61 square meters and will include an IKEA among its anchor stores. Office space absorption in Q1 showed a 12% decrease year-over-year, totaling 30,000 square meters, reflecting a cautious approach by institutional investors amid high-interest rates.
Investment in office spaces reached €58 million, dominated by a single institutional transaction, with the remainder aimed at owner-occupation. Notable deals included the Laskaridis group’s acquisition of the Cecil building in Kifisia and the Black Sea Trade and Development Bank’s purchase of new headquarters in Thessaloniki.
Cushman & Wakefield Proprius forecasts a rebound in investment activity in the latter half of the year, buoyed by an improving economic outlook and potential interest rate cuts by the European Central Bank. Retail giants reported a 7% increase in 2023 sales, reaching €68.14 billion, with personal care and toys leading the growth, particularly in Attica and Crete.
The report concludes with an observation of the retail market’s supply-demand imbalance, leading to upward pressures on prime rents along central shopping streets.
By Vassilis Kaltsas