Overview of the Greek Real Estate Market

The Greek real estate market is booming, thanks to its stable economic situation, growing tourist numbers, influx of foreign investments, and property supply shortage. This all allows investors to receive a stable rental income (4-6% per year) on property, and they can also expect an increase in the value of the asset in the long term. Experts believe that such economic trends will continue in the near future, making Greece a great prospect for international property investors.

This article contains everything you need to know about the Greek real estate market, as we analyse the key factors that influence it and look at whether it is worth buying real estate in Greece in 2025.

Real Estate Market Review

The Greek property sector has been demonstrating stable growth thanks to a booming economy, inflow of foreign investment, and high tourist numbers.

Economy and Expert Forecasts

According to The Economist magazine, Greece’s economy has been among the world’s top 3 fastest-growing economies for the third year in a row. The country’s credit rating upgrade by S&P Global Ratings to “BBB” is evidence of its sustainable fiscal policy and the fact that Greece manages its finances wisely. As a result, this strengthens the confidence of investors and international partners, and creates favourable conditions for the further development of the real estate market.

Inflow of Foreign Investment

Foreign investors’ interest in Greek real estate continues to grow. In 2024, net foreign investment reached €2.75B, with almost a third coming from EU countries, and over the past two years, this figure has increased to €4.9B.

The greatest demand is for real estate in Athens and Attica, Thessaloniki and Halkidiki, as well as popular island resorts like the Cyclades and the Ionian Islands. The main interest in foreign investment is focused on apartments – which is about 64% of requests, whilst villas and townhouses make up around 19% of interest.

The main players in the Greek real estate market are investors from Cyprus and Turkey. Cypriots contributed almost €320 million to the Greek economy in 2024, up 126% from 2023, whilst demand from Turkish citizens increased by 174% compared to 2023, and by a record 380% compared to 2022.

Rise in Prices and Rental Rates

Property prices in Greece are rising. According to the Bank of Greece, the growth rate in 2024 was 6.6% across the country, and over the past 10 years, prices have increased by more than 60%. The European Banking Authority forecasts a moderate increase in house prices in Greece in 2025 of 4.4%, followed by stabilisation of the growth rate at about 3.4% per year between 2025-2027.  Growth rates for the most popular properties are traditionally located in Athens and Thessaloniki.

A similar trend is observed in the rental market, where rental rates are increasing across almost all regions of the country. The Cyclades lead this trend, followed by the southern and northern suburbs of Athens, the centre of the capital, and Chalkidiki.

The active development of short-term rentals reduces the supply of long-term housing, which in turn, affects the growth of prices. The demand for housing in prestigious areas with developed infrastructure and close proximity to universities and international companies significantly exceeds the supply, hence why they are so popular and expensive.

Here are the average prices per 1 sq. m of residential property in different regions of Greece.

* Source: https://www.spitogatos.gr/

New Rules for Short-Term Rentals in Europe

From 1 July 2028, the EU will introduce VAT on short-term rentals (up to 30 nights), regardless of additional services. The goal is to unify taxes and equalise competition with hotels. The VAT rate is expected to be 10% and landlords will have to register for taxes, submit annual reports, and keep accounting records.

Online platforms (Airbnb, Booking, etc.) will be required to check landlords’ registration as taxpayers, as well as maintain electronic document management, and in some cases, withhold VAT. This is expected to impact price increases for tenants, which in turn may temporarily reduce demand and rental yields during the season. However, with due preparation, investors will be able to maintain the usual profitability of resort real estate after the introduction of VAT – to do this, it will be necessary to monitor occupancy levels, develop additional services, and adjust pricing policies taking into account the tax.

Golden Visa holders purchasing property under the investment programme after 1 September 2024 cannot use it for short-term rentals.

 Growth of Construction Activity

In 2024, Greece witnessed growth in construction activity. The number of building permits issued increased by almost 15%, which is equivalent to almost 7.3M sq. m of space. Athens outperformed most areas in this sector, with Central Macedonia coming in second and. Crete in third.

Tourism Growth

Greece is becoming one of the world’s leading tourist destinations, with over 35 million foreigners visiting the country in 2024 alone. Greece is also set to become one of the world’s leading tourist destinations in 2025, and is on a mission to set a new record. Airlines are also increasing the number of flights to Greece to cope with demand – for instance, the UK, Germany and Italy have all continuously increased the amount of flights going to different parts of Greece. Interest is growing from tourists from the USA, Israel, Saudi Arabia and Armenia, who all want to experience the beautiful serene villages with the famous instagram worthy sunsets, as well as the historic cities that make Greece an incredible place to both live and visit. At the same time, the country is actively promoting lesser-known locations, striving for a more even distribution of tourist flows. This creates new investment opportunities in regions that were previously in the shadow of popular islands.

Where is the Best Place to Buy Real Estate in Greece?

Athenian real estate offers a profitable combination of profitability and stability with long-term growth prospects. Prices are steadily rising but remain affordable, especially compared to other European capitals. Rental demand in the capital remains unaffected by the seasonal fluctuations that are typical of the Greek islands.

Prices of real estate in Athens increased by 9.1% in 2024, and in some suburbs, such as Piraeus, this rose to 28.9%. Investments in properties under construction and reconstruction are especially profitable, as the value of the property can increase by 10-25% before it is even delivered. In addition, such real estate is suitable for participation in the Greek Golden Visa programme for a minimum price of €250,000 – we will talk about this in more detail below.

There is significant investment in the urban environment, particularly in the Athenian Riviera area. The modernisation includes the construction of marinas, parks and hotels, making the city more attractive for living and investment. Compared to other European capitals, property prices in Athens remain competitive, both in terms of purchase and for rentals:

Popular Areas for Investment in the Capital

Central Athens. This area is in high demand among foreign buyers who are interested in profitable real estate and obtaining a residence permit in Greece. Here, old commercial buildings are actively being converted into modern residential complexes that meet the requirements of the Golden Visa programme. Athens is the capital of Greece, and is located on the shores of the Aegean Sea, with a population of more than 3 million people. It is a cultural, economic and tourist centre, with a developed infrastructure and a dynamic life that can be enjoyed by locals and tourists of all ages.

Piraeus. Piraeus is a suburb of Athens with the largest port in the Mediterranean, where cruises depart to neighbouring islands and other European countries. The city has excellent infrastructure, and the centre of the capital can be reached in just 15-20 minutes by car or metro. Piraeus attracts investors and business professionals, as it offers an excellent location with a strong trading environment.

Glyfada, Voula, Vari, Vouliagmeni. These are all fashionable suburbs located on the Athenian Riviera, where you will find luxury hotels, pristine beaches and the best golf courses in Greece. These are the pearls of the southern coast, and attract tourists with their picturesque nature and calm and measured life. Vouliagmeni is the most expensive location in Attica, where the average rental rate reaches €20/m². For comparison, at the end of 2024, the average rental cost in the centre of Athens was €13-14/m², and in the prestigious Kolonaki this reached €16-17/m².

Kifisia, Chalandri. The northern suburbs of Athens are also fashionable areas, located within close proximity to the capital. The climate is cooler here and there is more greenery, like parks and gardens. Both areas are popular with wealthy expats  for their good ecology, comfort, excellent infrastructure and a more relaxed pace of life than in Athens.

Why Greece is a Promising Destination for Real Estate Investment

The Greek economy is showing steady growth, and the tourism sector is actively developing. Demand for real estate here is consistently exceeding supply, creating very favourable conditions for investment. At the same time, real estate prices and living costs in Greece remain competitive compared to other European countries. For comparison, the average price per 1 m² in Greece is €2,300-€2,750, depending on location, whereas this price is €2,300-€3,700 in Spain, €2,650-€3,700 in Portugal, and, reaches €4,300-€5,480 in Germany. To rent a 1-bedroom apartment in Athens costs €390-€475 per month, in Spain — €720-€920, in Portugal — €730-€930, and in Germany — €670-€890.

The situation is similar in terms of the cost of living. In Greece, monthly living expenses, excluding rent, will cost €800 per person, and €2,750 for a family of four. For comparison, in Italy these expenses are €880 and €3,100, Germany — €1,000 and €3,400, and in Great Britain it costs anywhere between €960 and €3,260.

Greece offers not only opportunities to receive a stable rental income, but also long-term prospects for asset appreciation. In addition, the country is famous for its wonderful climate, picturesque nature, rich culture, developed infrastructure and a wide range of recreational activities for all ages, and travel.

Finally, Greece offers a Golden Visa programme, which allows you to obtain a 5-year renewable residence permit for the entire family to benefit from by real estate investment worth at least €250,000. At the moment, this is the fastest and most affordable way to obtain residency in Europe.

How to Invest in Greek Real Estate: Golden Visa is the Optimal Solution

The Greek Residence Permit by Investment programme is one of the most popular ways to obtain a residence permit in Europe. In addition to the opportunity to legally live in Greece, investors also get the opportunity to travel to the Schengen countries without the need for a visa, open accounts in Greek banks, and have access to quality education and healthcare. In addition, it is a reliable backup plan in case of emergencies and an opportunity to protect your assets and interests.

To participate in the programme, an investor must be over 18 years old, have no criminal record, must not be a citizen of Greece or the European Union, and have health insurance.

A residence permit is issued for 5 years to the main applicant, and it is possible to obtain resident status for members of his/her family as well, including spouse, children and parents of both spouses. After 5 years, the status can be extended if the investor retains their investment.

From 1 September 2024, different minimum investment thresholds were introduced, depending on the region of Greece:

• €800,000 – Athens, Attica, Thessaloniki, Crete, Santorini, Mykonos and all cities/islands with a population over 3,100 people
• €400,000 – all other regions of Greece

In both cases, only real estate from the developer with an area of ​​120 sq. m or more is permitted to be purchased. Renting out such real estate for short-term is prohibited.

Investors can use an alternative option and still obtain a residence permit for property purchase from €250,000. The location and area of ​​the property are not important, however the following property conditions must be met:

• Have historical or cultural significance and require restoration
• Are developed from commercial to residential use

Conversion of commercial real estate into residential means changing the status of the property. This means that a building previously used for commercial purposes – for example, as a retail store, office, warehouse or factory – is transferred to the category of residential property. After completing all the necessary legal procedures, this type of building can be used for human habitation, for example, as an apartment or an apartment complex. The developer buys the old building, completely renovates it, and turns it into a modern building that meets all safety and energy efficiency standards. 

The investor does not carry out repairs or reconstruction on his own – all work, from design to finishing, is carried out by the developer. In fact, the investor invests in a promising project at the stage of its implementation, and after the completion of the reconstruction, the investor becomes the full owner of a modern apartment in a completely renovated building.

This option is especially in demand in Athens and its suburbs, as there are many suitable buildings in the capital region, like former industrial sites, old office buildings or retail premises. This means that there is a wide range of properties on the market that allow you to receive a Greek Golden Visa for the minimum required amount in a sought-after area.

Astons is a reliable partner in matters of investment immigration and foreign real estate. Contact our experts for a free consultation today, and our specialists will review your case and offer optimal solutions for your needs and budget.