According to Savills, the Greek economic activity has contracted for the third consecutive year and economists are forecasting another year of recession in 2012. Economic sentiment is low and confidence in the service sector has seen in January a historic low record. New business activity has stagnated due to economic depression and the number of enterprises that are closing is rising. On the other hand, companies are downsizing and reducing their operational costs with immediate effect on their property requirements. As a result, letting activity is low and the majority accounts for small to medium surfaces (500sqm and up to 2,000sqm). Larger tenants tend to renegotiate their current leases causing an ongoing downward pressure on rents, which have dropped on average by 18%-20% compared to Q4 2010.

The overall vacancy rate is rising, mainly in secondary locations as prime locations remain in demand especially as they become more affordable. New development activity is effectively zero, as there is no funding available.