With mild but steady declining yields continued in the first quarter of 2025 the European market office. According to Savills survey, average prime performance real estate It stood at 4.89%, declining by 3 basis points (0.03%), in an environment where the market is already affected by Trump’s duties.
The West End market in London mainly led to the downward trend, with yields reduced by 25 basis points (0.25%) to 3.75%, and Vienna, with a drop of 15 base points (0.15%) to 4.85%. Meanwhile, Athens, although not yet one of the basic pillars of the European Office Market, records increased mobility in the real estate prime sector, mainly in areas such as the Constitution, Marousi.
In Greece today there are three different speeds on the market right now. At the first speed are the quality, modern, green offices, almost independently of the position, raise very high demand and rents that can escape up to 35 euros per square meter per month and yields of around 6%. The second speed includes the old, renovated offices in Kolonaki and on central roads, which mark remarkable durability and lease values of 20 – 25 euros per sqm. with 7%yields. The third concerns the older or non-renovated offices that cannot be rented for even 10-15 euros in secondary positions in downtown Athens, with yields of about 7.5%.
Athens is ranked in the middle category of office rental prices, with the cost of € 408 per square meter per year, according to available data. This price places the Greek capital above the average of the cheapest markets in Europe, but at the same time significantly lower than top markets, such as London, Paris and Milan, where rents move to a clearly higher level.
At the same time, Madrid and Paris – especially in their central business hubs – stand out as one of the most attractive office markets in Europe. Positive forecasts for real rentals, coupled with the downward trend of non -risk -risk -free returns, further enhance the interest in high quality real estate.
Despite the climate of international uncertainty – with a typical example being market turmoil due to the duties imposed by Trump – the market for non -listed real estate in Europe shows remarkable durability, with yields remaining constant on a quarterly basis. However, it is estimated that in 2025 there will be further compression, up to 0.25 percentage points, in many basic markets on the European map.
Although some investors choose to hold a standby attitude, the majority of transactions continue to move on. Office buyers are particularly active, seeking to take advantage of the opportunities created by the most affordable valuations.