Greece’s economy has long depended on its tourism sector, which attracts millions of visitors annually, reaching a record high of 40.7 million in 2024. However, recent efforts to diversify the economic base are gradually transforming the landscape, emphasizing sectors such as pharmaceuticals, technology, logistics, data centers, and energy. These sectors require modern, high-quality real estate assets, positioning Greece as an emerging hub for innovation and real estate activity.
A Diversified Economic Canvas
The country’s focus on economic diversification is backed by a strong policy environment and rising investor confidence. In 2024, foreign direct investment increased by 41%, fueled by government incentives, streamlined procedures, and EU funding programs designed to facilitate large-scale projects. These reforms aim to establish Greece as a competitive destination for innovation and high-growth industries, moving beyond its traditional reliance on tourism. This positive trajectory is reflected in GDP projections of 2.3% in 2025 and 2.2% in 2026.
Significant developments in digital infrastructure exemplify this shift. International giants such as Microsoft and Amazon have announced plans to develop major data centers in Greece, supporting the expansion of the country’s digital economy. Moreover, there is growing demand for specialized office spaces that cater to tech firms, while logistics facilities are becoming increasingly vital to support new e-commerce sectors and supply chain efficiencies.
At the same time, the pharmaceutical sector is gaining momentum, with global companies such as Pfizer and Boehringer Ingelheim establishing offices, R&D centers, and laboratories in key regional hubs like Athens and Thessaloniki. This expansion further underpins Greece’s emerging reputation as a center for innovative health industries.
Production of Modern Real Estate Stock
This expanding economic landscape directly impacts Greece’s real estate market. A significant challenge remains: the country still faces a shortage of high-quality, modern commercial stock, especially in office and industrial sectors. Years of minimal development during Greece’s economic crisis resulted in an aging, limited supply that struggles to meet the demands of new, knowledge-driven industries. Companies seeking flexible, cutting-edge office environments are often compelled to look outside existing options, fueling interest in new developments. Existing high quality office stock in Athens totals approximately 2.8 million square miles, which reflects a 7% increase since 2023.
Demand for logistics infrastructure follows a similar trend. With increased trade, supply chain digitization, and the rise of online retail, the need for state-of-the-art warehouses — featuring automation, strategic locations, and modern standards — is fundamental. The rising volume of e-commerce shipments has made logistics facilities a priority for investors looking to capitalize on Greece’s strategic position.
At the same time, urban regeneration is gaining momentum. Major cities such as Athens and Thessaloniki are undergoing extensive renewal projects aimed at creating attractive environments for professionals and students alike. These efforts focus on improving public transport, developing mixed-use neighborhoods, providing modern commercial and residential spaces, and upgrading public spaces to foster vibrant, livable environments. This urban overhaul not only enhances quality of life but also acts as a catalyst for attracting and retaining talent — both local and international.
Addressing The Supply Gap And Future Opportunities
Despite these positive developments, the country faces a significant challenge: an insufficient supply of modern office and logistics spaces. This will require sustained development activity, supported by regulatory reforms and public-private partnerships. Prime office locations currently have a vacancy rate around 8%, a decrease from approximately 10% in 2023. Around 150,000 square miles of Grade A office space is expected to be delivered in 2025.
Rising demand for modern office and logistics space presents a compelling opportunity for real estate investors and developers and opens opportunities for targeted projects that can deliver flexible, high-standard spaces aligned with international benchmarks.