How the official indices are built
The Bank of Greece compiles office and retail indices twice a year (base year 2010) using data from credit institutions, Real Estate Investment Companies (ΑΕΕΑΠ) and other sources such as consultants, portfolio managers, developers and brokers. The data include valuations, rents, transactions, investments and yields.
Crucially, the Bank notes that its price indices represent prime investment property and are valuation-based rather than built on actual transactions. They are therefore expected to show some lag, especially when values fall, and in periods of limited transactions they tend to reflect sentiment and expectations at the time of valuation.
Why the headline is not your asset's value
When a market is rising, it is tempting to apply the headline percentage to an existing valuation. That shortcut ignores the factors that actually set value at asset level: the quality and length of income, the cost of bringing the building up to standard, energy performance and the legal and permitting position.
A secondary office with short leases outside Athens and a prime Athens building can sit in the same official category while moving in opposite directions.
What a sound commercial valuation should evidence
Comparable evidence — transactions and lettings that genuinely compete with the asset, with the adjustments explained.
Income analysis — rent roll, lease terms, break options, indexation and the sustainability of the current rent against the market.
Technical and legal review — condition, required capital expenditure, energy performance, title and permitting status.
A clear basis and purpose — whether the figure supports a sale, financing, reporting or a development decision, because each requires a different emphasis.
Sources
This insight summarises published third-party data and Proven Commercial's professional view. It is not investment advice or a valuation of any specific property.
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