Greek Property Market 2025

The Greek property market in 2025 continues its impressive trajectory of growth, building on several years of sustained recovery and robust demand. After navigating a decade of economic challenges, Greece has firmly re-established itself as an attractive destination for real estate investment, driven by a thriving tourism sector, strategic government policies, and an increasingly stable economic outlook. For international buyers, in particular, Greece presents a compelling blend of lifestyle appeal, competitive pricing compared to other European hotspots, and significant investment potential.

Sustained Growth and Market Dynamics

The first quarter of 2025 has seen the Greek residential property market close on a strong note, with prices continuing their upward trend. According to the Bank of Greece, residential property prices increased by 9.2% year-on-year in Q1 2025, extending a remarkable growth streak that has now spanned over six years. While the pace of growth might show some moderation compared to the exceptional surges of 2023 (13.9% annual increase), the market remains robust and resilient. This steady appreciation is observed across various property types, with new apartments (up to 5 years old) showing an 8.0% annual increase in Q1 2025, and older apartments (over 5 years old) rising by 6.0%.

This growth is not uniform across the country, with distinct regional hotspots leading the way. Urban hubs like Athens and Thessaloniki are experiencing significant demand, fueled by local buyers, ongoing urban renewal projects, and a growing influx of international interest. For instance, Thessaloniki recorded a strong 10.0% year-on-year increase in apartment prices in Q1 2025, while Athens saw a 5.5% rise. Beyond the major cities, coastal properties and popular islands continue to be in high demand, particularly from international buyers seeking holiday homes or lucrative rental income opportunities. The overall market dynamic currently favors sellers, with demand often outpacing supply, especially for renovated, rental-ready properties in prime locations, which can sell within 60-90 days in Athens and even faster in Thessaloniki.

The Enduring Allure for International Buyers

International buyers remain a pivotal force in the Greek property market in 2025. Greece’s competitive pricing – when compared to other established European destinations – combined with attractive programs like the Golden Visa, continues to draw investors from Europe, the Middle East, Asia, and North America. Roughly 40% of all property transactions in Athens in Q1 2025 involved foreign buyers, highlighting their significant influence.

One of the primary drivers for international acquisition is the Golden Visa program, which allows non-EU nationals to obtain a five-year renewable residence permit by investing in Greek real estate. While the program underwent significant threshold adjustments in August 2024 (effective 2025), it remains a powerful incentive. The new regulations aim to rebalance investment across regions, with a three-zone system:

• Zone A (Prime Locations): Includes central Athens, Mykonos, Santorini, Thessaloniki, and islands with populations over 3,100, requiring a minimum investment of €800,000. For these areas, single property purchases of at least 120 square meters are now required, eliminating the option to combine smaller properties.
• Zone B (Regional Areas): A minimum investment of €400,000 applies to properties in other regional areas.
• Zone C (Specific Conversions/Renovations): The original €250,000 threshold is maintained for commercial-to-residential property conversions or restoration of listed buildings with historical significance, with no size restrictions.

Despite the increased thresholds in prime areas, the Golden Visa still offers compelling benefits, including visa-free travel across the Schengen Area, no requirement to reside in Greece, and the ability to include close family members. This flexibility makes it particularly appealing for those seeking a “back-pocket residency” or a strategic European base without mandatory relocation.

The Tourism Boom and Its Impact

Greece’s booming tourism sector continues to be a major catalyst for the real estate market. With tourist arrivals and income reaching historic highs in recent years, the demand for short-term rental properties, holiday homes, and boutique hotels has surged. This has led to substantial price appreciation in popular tourist destinations and island hotspots. For instance, islands like Mykonos and Santorini command premium prices, with some exclusive developments exceeding €10,000 per square meter, driven by their elite appeal and high rental yields.

However, the rapid growth of short-term rentals has also brought challenges, particularly in major urban centers and popular island communities. Concerns about housing affordability for locals and the impact of “overtourism” have prompted the Greek government to introduce new regulations. As of October 1, 2025, stricter safety measures will be enforced for short-term rentals, and properties must meet specific criteria regarding natural light, ventilation, and air conditioning. More significantly, in popular Athens neighborhoods like Kolonaki, Koukaki, and Exarchia, a one-year freeze on new short-term rental registrations began on January 1, 2025, accompanied by increased taxes on such properties. These measures aim to promote sustainable tourism, protect local communities, and potentially shift some investment focus towards long-term rentals or personal use.

Popular Regions and Emerging Hotspots

International buyers in 2025 are targeting a diverse range of locations across Greece:

• Athens and the Athens Riviera: The capital city remains a primary draw. Central Athens neighborhoods continue to see strong demand for renovated apartments suitable for long-term rentals or personal use. The Southern Suburbs of Athens (Glyfada, Voula, Elliniko) are particularly sought-after, combining coastal luxury with proximity to the city center and the major Ellinikon project. This multi-billion-euro urban redevelopment, Europe’s largest, is expected to significantly boost property values in surrounding areas for years to come.
• Thessaloniki: As Greece’s second-largest city, Thessaloniki is emerging as a dynamic investment hub. Its growing commercial development, improving infrastructure (including the new metro system), and strong rental market make it attractive. Areas like Kalamaria and Nea Paralia are popular, offering premium seafront homes and family-friendly environments.
• The Greek Islands: The perennial favorites like Mykonos and Santorini continue to attract high-net-worth investors due to their elite appeal and exceptional rental yields, particularly during the peak season. Crete remains the most popular island among foreign buyers, offering scale, stability, and diverse lifestyle options. Other popular islands include Rhodes, Corfu, and Paros.
• Peloponnese & Halkidiki: These mainland coastal regions are gaining traction, offering beautiful scenery, more competitive pricing, and opportunities for lifestyle properties or holiday homes, especially among those looking for areas eligible for the lower Golden Visa thresholds (€400,000).
• Emerging Hotspots: Investors are also looking beyond traditional hotspots to find value. Areas in Western Macedonia offer high renovation potential with lower entry costs. Even certain low-income areas in Athens and Thessaloniki, previously overlooked, are seeing significant organic demand and price growth due to improved infrastructure and affordability relative to prime zones, appealing to buyers seeking higher rental yields.

Challenges and Outlook for 2025

While the Greek property market remains on a positive trajectory, certain challenges persist:

• Affordability: The continuous rise in property prices, especially in prime urban and tourist areas, is creating affordability challenges for local buyers.
• Supply Shortage: Despite strong demand, the supply of new housing continues to lag. Construction activity has seen a decline in early 2025, with rising construction costs and a shortage of skilled labor hindering new developments. This supply-demand imbalance contributes to price appreciation but can also limit transaction volumes.
• Bureaucracy: Property transfer processes can still be slow and bureaucratic, although efforts are being made to streamline procedures.
• Golden Visa Adjustments: While the Golden Visa remains attractive, the increased investment thresholds in key areas may lead to some moderation in transaction volumes from specific investor profiles, potentially diverting interest to lower-tier investment options or alternative programs. However, demand has shown resilience, with investors adapting to the new rules.
• Geopolitical and Economic Factors: Broader geopolitical instability, energy costs, and inflation could influence market sentiment, though Greece’s economy has demonstrated remarkable resilience.

Despite these challenges, the outlook for the Greek property market in 2025 remains largely positive. The underlying demand, driven by robust tourism, a recovering economy, ongoing infrastructure projects (like the Ellinikon project and Thessaloniki metro), and continued international interest, is expected to sustain moderate price growth, likely in the range of 5-7% nationwide. Greece continues to offer compelling investment opportunities, particularly for those who conduct thorough due diligence and align their investments with regional market dynamics and long-term trends. The market is maturing, moving towards a more stable, albeit still appreciating, environment that offers both lifestyle benefits and solid returns for savvy international buyers.