Commercial Real Estate in Greece 2026: Hotels, Retail, Offices and Yields

What counts as commercial real estate in Greece

Before we talk about yields, let's agree on terms. Commercial real estate is any property that generates income not as your home, but as a working business asset: it is leased to a corporate tenant or used for commercial activity. In Greece, this category covers several major groups of properties, each with its own risk and return profile.

• Hospitality segment - hotels, apart-hotels, guest houses and properties for short-term tourist accommodation.
• Retail (retail real estate) - shops on the main shopping streets, units in tourist areas, and space for brands and food and beverage.
• Offices - business centers and office blocks, primarily in Athens, increasingly in the class of «green» energy-efficient buildings.
• Logistics and warehousing - warehousing and distribution complexes, driven by the growth of e-commerce and Greece's role as a logistics hub.

The fundamental difference from residential is that commercial property is bought for cash flow and capital appreciation, not for living in. That is why the valuation logic differs: the focus is not on «whether you like the apartment», but on the tenant, the length of the lease, the location and the potential for rental growth. If your goal is not a business asset but EU resident status through residential property, start with our overview of how to buy real estate in Greece, and then come back to commercial property.

Why Greek commercial property is compelling specifically in 2026

The Greek real estate market is going through a rare combination of factors that works in favor of the commercial investor. After a long decade of crisis, the economy has recovered, the country has regained its investment-grade rating, and demand for quality commercial properties clearly outstrips supply.

What specifically supports the market in 2026:

• Record tourism. Visitor numbers in Greece are hitting all-time highs, and this feeds the hospitality and retail segments directly - high hotel occupancy and strong shop revenues in tourist locations.
• The arrival of tech companies in Athens. Corporate relocations and the expansion of the IT sector create steady demand for modern offices, especially energy-efficient ones with good transport access.
• Limited supply of quality properties. There is little new Class A commercial construction, and this keeps rents and prices from falling.
• Rising asset values. According to 2025 data, commercial real estate rose in value by roughly 5.5%, premium retail by about 10.4%, and offices by around 7.2%.

In other words, the investor is entering not a speculative bubble but a recovering market with real demand. At the same time, commercial yields remain higher than residential ones - and it is precisely this gap that makes the segment attractive. You can always check the latest official statistics and regulatory documents for the sector on the government portal gov.gr.

Income property in Greece by segment: a «segment - yield - key feature» table

Let's bring the key points together in a single table. The yield figures are indicative and represent gross yield (before taxes and expenses) on a typical quality property in a good location. Actual returns always depend on the specific property, the tenant and whether you buy through a company. But as a benchmark for comparing segments, the table works well.

The conclusion from the table is clear: all else being equal, commercial property yields 1.5-3 percentage points more than long-term residential rentals. For a detailed breakdown of residential returns specifically, see our article on rental yields on real estate in Greece; here we focus on commercial assets.

The hospitality segment: buying a hotel in Greece on the tourism wave

The hospitality segment is today the driving force behind all of Greek commercial real estate. Tourist arrivals are setting records, and investors feel it: by industry estimates, around 36% of them place tourism properties at the heart of their portfolios, and this share could rise to roughly 45%. When people say «buy a hotel in Greece», they mean very different formats - and each has its own economics.

• City hotels in Athens and Thessaloniki - year-round occupancy thanks to business and cultural tourism.
• Resort hotels on the islands (Crete, Rhodes, Santorini, Corfu) and in Halkidiki - pronounced seasonality, but very high rates at peak season.
• Apart-hotels and apartment complexes - a flexible format that combines hotel service with the sale or rental of individual units.
• Boutique hotels and guest houses - a lower entry ticket, with a bet on a unique location and service.

Prime properties in the hospitality segment yield roughly 6-7% per year and above. An important bonus: quality hospitality and tourism projects can qualify for state grants under the Development Law - covering up to 70% of eligible investment costs. This is a serious lever for returns, but a project seeking such a grant must be prepared carefully, with a business plan and full compliance with the criteria. A hotel is not a passive «buy and forget» asset: it needs to be managed, either in-house or by hiring a management company, and this cost item must always be built into the net-return calculation.

Retail real estate in Greece: shops, main streets and tourism

Retail real estate in Greece is experiencing a marked upturn. As consumer demand recovers and tourism grows, rents on the main shopping streets of Athens and Thessaloniki are rising, and the value of premium retail gained roughly 10.4% over 2025 - the fastest growth of any commercial segment.

What drives retail yields:

• Location and footfall. A shop on a flagship retail street or in the tourist core costs more, but the tenant also pays more and vacancy is minimal.
• Tenant quality. An international brand on a long lease means a predictable income stream and low risk; a local tenant is cheaper but riskier.
• The tourism factor. In resort and central areas, revenues from shops and food and beverage grow along with tourist flows, which supports rents.

The benchmark yield for retail in good locations is roughly 6-8% per year. The key risk in the segment is its dependence on footfall: if the flow of visitors or shoppers falls, the retail unit is the first to feel it. That is why in retail it is especially important not to chase the cheapest option, but to buy a property in a location with resilient demand and, ideally, with a reliable tenant already in place.

Office real estate in Athens: demand from IT and corporations

The office segment in Greece is first and foremost an Athens story. Following the arrival of tech companies in the city and a wave of corporate relocations, demand for quality offices is growing steadily: according to 2025 data, office prices rose by roughly 7.2%, and in the first half of 2026 growth continued at a pace of around 0.5-1% per quarter. About 21% of investors today keep their focus specifically on modern office space.

What determines the success of an office asset:

• Building class and energy efficiency. Demand has shifted toward «green» buildings with modern engineering systems - tenants are willing to pay a premium for low operating costs and ESG compliance.
• Transport access. Proximity to the metro and business clusters directly affects rents and occupancy.
• Lease length and quality. A corporate tenant on a multi-year contract is the ideal scenario for an office.

The yield on modern offices in Athens is roughly 6-7% per year. It is important to understand the distinction: Athens pulls the market up, whereas in Thessaloniki the office segment has at times slipped due to new supply coming online. So offices are a segment where location and building class decide almost everything, and there is essentially no universal «nationwide average yield» here.

Logistics and warehousing: a quiet but growing segment

Warehousing and logistics property is the least «glamorous» but one of the most stable commercial segments. The growth of e-commerce, retailers' need for modern distribution centers and Greece's convenient geographic position as a gateway between Europe, Asia and Africa make this market increasingly attractive. Investors are gradually reallocating some capital from overheated segments into warehousing assets, and interest in them has grown noticeably.

Why logistics appeals to investors:

• Long lease terms. Logistics operators and retailers sign up for the long term, giving a predictable cash flow for years ahead.
• Low operational burden. A warehouse is simpler to manage than a hotel or shopping center: less «life» inside the property, fewer points of failure.
• Yields above offices and residential. The benchmark for the segment is roughly 7-8% per year.

The downside of the segment is the entry threshold and its specifics: a quality logistics property is usually expensive, requires an understanding of location (proximity to ports, highways and airports) and sound legal due diligence on the land and permits. But for an investor looking specifically for stable cash flow without day-to-day management, warehouses are one of the most rational options on the Greek market.

Conditions for a foreigner buying commercial property: AFM, notary, company

The good news: foreigners buy commercial real estate in Greece freely, with no need to obtain citizenship or a residence permit in advance. Restrictions apply only to border zones and certain islands, where a special permit is required. Otherwise the procedure is well-established and straightforward.

The basic steps and conditions of the transaction:

• AFM (Greek tax number). Without it, neither a purchase, nor opening an account, nor registering a company is possible. It is obtained from the tax office, in person or through a representative acting under a power of attorney.
• A bank account in Greece. Needed to make payments and to confirm the legal source of funds.
• Notary and legal due diligence. A property transaction is executed through a notary; beforehand, a lawyer checks the cleanliness of the title, encumbrances, permits and the planning status of the property - which is critical for commercial property.
• Buying through a company. Commercial properties, especially income-producing ones, are often acquired through a Greek legal entity: this allows expenses and depreciation to be deducted and tax to be optimized (more on this in the taxes section).

It is worth separately checking the property's designated purpose and permitted use: whether the planned business can be run there and whether there are any breaches of building and cadastral rules. It is precisely with commercial property that the most expensive surprises «surface» - from unregistered alterations to problems with the operating permit. So there is no room to cut corners on legal due diligence here.

The bridge to the Golden Visa: commercial property can be converted to residential at 250,000 euros

The most common question from a commercial investor: does such a purchase grant a residence permit? The program offers no direct residence permit for buying a commercial property as a business - the Greek Golden Visa program is tied specifically to residential real estate. But there is an elegant legal bridge that relates precisely to commercial property.

In 2026 there are three investment thresholds for the Golden Visa:

• 250,000 euros - only for converting a commercial property to residential or for restoring a listed building; available in any region of the country, with no geographic restrictions.
• 400,000 euros - the standard threshold in most regions.
• 800,000 euros - in premium zones (Attica/Athens, Thessaloniki, Mykonos, Santorini, the larger islands).

The minimum property size is 120 sq m, and the transaction must be a single one for a single property. It is precisely the reduced threshold of 250,000 euros that makes commercial property an intriguing entry point: you buy a commercial unit, officially convert it to residential (obtaining all the change-of-use permits and registering the changes before submitting your application) - and gain the right to the Golden Visa at the reduced threshold. An important caveat: short-term rental of such a property (Airbnb, Booking) is prohibited, on pain of revocation of the residence permit and a fine. A detailed breakdown of this route is in our article on the Golden Visa at 250,000 euros through conversion.

VAT on commercial real estate: 24% and the nuances

The tax side is what sets commercial property apart from residential most of all, and VAT is the key factor here. As a general rule, the sale of new buildings by a business is subject to VAT at 24%. This is a substantial figure that must be built into the calculation in advance, because the VAT suspension that applies to new residential property generally does not extend to commercial property.

Key points on VAT in 2026:

• New commercial property from a developer/business - is in principle subject to 24% VAT, which makes entry more expensive than a resale.
• The VAT suspension on new residential property has been extended to 31 December 2026: qualifying sales of new homes are taken out of the scope of VAT and are subject only to a transfer tax of around 3-3.09%. But this concerns residential property, not commercial.
• Resale commercial property (not a new building) usually goes not through VAT but through the property transfer tax.
• VAT deduction. If the buyer is a VAT-registered company, the input tax can under certain conditions be reclaimed, which changes the entire economics of the deal.

It is precisely because of VAT that the purchase structure and the seller's status (individual/company, new/resale building) must be worked out before the deal, not after. The difference between «bought with 24% VAT and no deduction» and «structured through a company with a deduction» can amount to tens of percent of the budget. For a systematic overview of the tax burden, see our article on property taxes in Greece.

Taxes on ownership and sale: transfer tax, ENFIA, profit

Beyond VAT, a commercial property comes with a full set of taxes on purchase, ownership and sale. It is important to understand them in order to calculate not gross but net yield - which is what ultimately reaches the investor.

• Property transfer tax - around 3.09% (3% tax plus a 3% municipal surcharge on the tax itself), calculated on the greater of the two: the contract price or the objective (cadastral) value. It applies to transactions not subject to VAT - that is, to resales.
• ENFIA - an annual property ownership tax; for commercial and large properties it can be a significant expense item, and it is always built into the yield model.
• Corporate tax of 22%. If the property is held by a Greek company, rental profit is taxed at the corporate rate, but expenses, building depreciation and loan interest are deducted from the base - which is often more advantageous than ownership by an individual.
• Capital gains tax on sale. For individuals, tax on profit from the sale of real estate is suspended until 31 December 2026 - an individual seller pays no capital gains tax during this period. For companies, the gain forms part of the ordinary corporate base.

The main practical takeaway: with commercial property, the tax structure of the deal is often more important than the price of the property itself. A well-chosen ownership form (company versus individual), and the proper handling of VAT and depreciation, can add to the net yield the very percentage points for which the investor turns to commercial property rather than residential.

Buying through a Greek company: when it pays off

For income-producing commercial real estate, buying through a legal entity is more often the rule than the exception. The logic is simple: a company allows the property to be run as a business rather than as personal property, with all the resulting tax advantages.

What buying through a company gives you:

• Expense deductions. Operating costs, repairs, management, insurance and loan interest are deducted from taxable profit.
• Building depreciation. The cost of the property is written off in installments over its useful life, reducing the tax base - something not available to individual owners.
• Input VAT recovery. A VAT-registered company can, under certain conditions, reclaim the VAT paid on purchase.
• Flexibility on sale and inheritance. You can sell shares in the company and structure ownership among family members or partners.

The flip side is the cost of running a company: accounting, reporting and 22% corporate tax on profit. For a small property with modest income, these costs may outweigh the benefit, and then direct ownership is simpler. So the choice of «company or individual» is always worked out for the specific deal: the more expensive the property and the higher the rental income, the more the balance tips in favor of a legal entity. There is no universal answer here - there is a calculation for your situation.

The risks of commercial property and how to reduce them

Commercial real estate yields more than residential for a reason - along with the yield, the set of risks grows too. Understanding them is half the battle in a successful investment.

• Tenant and vacancy risk. A commercial property without a tenant brings in nothing, and finding a new tenant for commercial space takes longer and is harder than letting an apartment. The solution is to buy properties with a reliable sitting tenant on a long lease.
• Dependence on the economic cycle and tourism. Retail and hotels are sensitive to a downturn in demand and tourist flows. Diversifying across segments and betting on resilient locations reduces this risk.
• Legal and planning problems. Unregistered alterations, problems with the operating permit, a disputed title - these occur more often with commercial property. Only thorough legal and technical due diligence before the deal will save you.
• Tax miscalculations. The wrong structure (VAT with no deduction, the wrong ownership form) can wipe out the benefit. Work out the structure in advance.
• Management. A hotel or shopping center requires management; the wrong choice of management company hurts the yield.

The main principle for reducing risk in commercial property is not to buy «on price» but to buy «on quality»: a location with resilient demand, a verified title, a reliable tenant and a calculated tax structure matter more than a low price tag on a problematic property.

An expert's view: where investors lose yield

Over years of working with Greek commercial property, we see that investors lose money not on the market, but on the details that could have been calculated in advance.

• They calculate gross yield instead of net. «The property yields 8%» sounds nice, but after VAT, ENFIA, management and income tax a very different figure remains. Calculate the net return.
• They ignore VAT on new commercial property. 24% on top is no trifle, and without the right structure (a company, a deduction) entering new commercial property becomes sharply more expensive.
• They buy as individuals what is better held through a company. Depreciation and expense deductions on an income-producing property often outweigh the cost of a legal entity.
• They cut corners on legal due diligence. An unregistered alteration or a problem with the operating permit surfaces after the deal and costs more than any savings on the lawyer.

Commercial property in Greece is a strong asset class, but it forgives only the prepared investor. The sooner the tax structure is worked out and the property vetted, the closer the real yield is to that attractive figure in the listing.

Bottom line: who Greek commercial real estate is right for

Commercial real estate in Greece in 2026 is a rational choice for an investor seeking cash flow higher than residential can offer and willing to get into the details. The hospitality segment pulls the market along on a wave of record tourism, retail and Athens offices are rising on recovering demand and the arrival of tech companies, and logistics offers stability and long leases. A benchmark yield of 6-9% versus 4-5.5% for residential is the premium that makes commercial property worth entering.

But commercial property requires preparation: 24% VAT on new properties, a sound ownership form through a company, thorough legal due diligence and a sober calculation of net rather than gross yield. For those who need EU resident status in addition to income, there is an elegant route - converting a commercial property to residential for the Golden Visa at 250,000 euros, which combines the investment and the residence permit in a single transaction. It is more logical to start from an understanding of the whole market - from purchase to taxes: see our articles on buying real estate in Greece and property taxes. It is worth checking the current rules and forms on the official portal gov.gr.