Athens set to house 150,000 m[sup]2[/sup] of new Class A offices

A total of 150,000 m² Class A office space is currently under construction in Athens, the new Athens Office Market Overview issued by Colliers International Hellas reported. The existing Class A office space available for immediate take-up in the Greek capital at the start of 2007 comes to 50,000 m2, with an average vacancy rate of 3%.

Athens' total office market stock is estimated at more than 2 million m2, of which some 130,000 m² was added in 2006. Vacancy rates have been falling from 12% in 2004 to 10% in 2005 to 8% at the end of 2006. Rental rates in the Central Business District have meanwhile stabilized after declining in the previous years.

Initial yields continue to fall in Athens, narrowing the gap between the Greek capital and other major European cities. Recent transactions have suggested a yield rate of about 6.2%, which compares with rates of about 5.5% in other major European cities.

Richard Hazell, managing director of Colliers International Hellas, said: 'Our research shows that this is a very dynamic market. We are involved in some of the most exciting projects around, such as the leasing of the offices at the new Athens Stock Exchange.'