Authored by the expert who managed and guided the team behind the Greece Property Pack
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What will happen in Athens' real estate market? Will prices go up or down? Is Athens still a hotspot for foreign investors? How is Greece’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in Athens, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
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1) Athens property prices will steadily rise due to increased foreign investment
The residential property market in Athens is seeing a steady rise in prices, thanks to foreign investment.
In 2023, foreign direct investment in Greek real estate jumped by 8% year-over-year, hitting €2.13 billion. This surge shows a growing interest from international buyers, eager to tap into Athens' potential. The Golden Visa program has been a game-changer, drawing in non-EU citizens who invested around €3 billion last year. This program offers residency to those who buy property, making it a magnet for foreign investors.
Looking ahead, the investment threshold is set to rise in 2024, which could lead to more high-value investments. Athens is still a hot spot because its property prices are relatively low compared to other European capitals. This affordability, along with favorable exchange rates, makes Greek properties more appealing to foreign buyers.
The Greek economy is on the mend, with positive GDP growth trends creating a stable environment for investment. This economic recovery adds another layer of confidence for those looking to invest in Athens. The city's charm, combined with these economic factors, makes it an attractive option for property buyers.
Foreign investors are not just buying properties; they are also contributing to the local economy, creating a win-win situation. As Athens continues to draw international attention, the property market is poised for further growth. The combination of low prices, economic stability, and the Golden Visa program is a recipe for success.
Sources: Esales International, Immigrant Invest, The Luxury Playbook, Keep Talking Greece
2) More foreign buyers will seek second homes in Athens because of its cultural charm and pleasant climate
Athens has become a hotspot for foreign buyers looking for second homes, and there are several reasons for this trend. In 2023, foreign direct investments in Greek real estate reached €1,644 million, marking a 28.7% increase from the previous year. This surge in investment highlights the growing interest in Athens as a prime location for property purchases.
The city's cultural appeal and favorable climate are significant factors attracting international buyers. Athens is renowned for its rich history, vibrant cultural events, and festivals that draw global attention. Additionally, the Mediterranean climate, with mild winters and warm summers, makes it an ideal destination for those seeking pleasant weather year-round.
Moreover, the increase in international flights to Athens has made the city more accessible to foreign buyers. In 2023, Athens International Airport set a new record with 28.17 million passengers, 69% of whom were international travelers. This accessibility, combined with the city's cultural and climatic allure, makes Athens a desirable location for second homes.
Sources: Greek Exclusive Properties, Grekodom, Air Service One
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Greece versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
3) Rental yields in central Athens will rise as short-term rental demand increases
Athens is buzzing with tourists, welcoming over 30.8 million visitors in 2023.
This surge in tourism has naturally led to a booming demand for short-term rentals, as travelers love the flexibility and convenience they offer. Platforms like Airbnb are thriving, with over 12,253 active listings in Athens as of September 2024. These properties are not just sitting empty; they have a median occupancy rate of 74%, meaning they're frequently booked and generating income.
What's driving this trend? Well, the Greek government is playing its part by introducing initiatives like the Digital Nomad Visa. This move is attracting remote workers from around the globe, who are looking for short-term stays in vibrant cities like Athens. It's not just about the tourists anymore; digital nomads are adding to the rental demand too.
Urban development projects are also making Athens more appealing. The city is evolving, with new attractions and improved infrastructure, making it a hot spot for both tourists and digital nomads. This transformation is a win-win for property owners, as they can charge higher rates for short-term rentals compared to traditional long-term leases.
With all these factors in play, it's no surprise that rental yields in central Athens are on the rise. Property owners are capitalizing on the increased demand, and the trend shows no signs of slowing down. If you're considering investing in Athens, now might be the perfect time to dive into the short-term rental market.
Sources: English News, Airbtics, This is Athens
4) More foreign investors will buy in Athens as it becomes a European real estate hotspot
Athens is becoming a hotspot for European real estate, attracting more foreign investors.
One big draw is the affordable property prices in Athens. Compared to cities like Zurich and Paris, where prices are sky-high, Athens offers a median price of €2,073 per square meter. This makes it a great choice for those looking to invest in luxury properties without breaking the bank.
The Greek government's Golden Visa program is another reason investors are flocking to Athens. This program provides a simple path to residency through real estate investment, which is perfect for high-net-worth individuals wanting a second passport. It's already proving successful, with more foreign investment cases popping up in the city.
Athens is also seeing a wave of urban development projects. For example, the undergrounding of Poseidonos Avenue and the Helioupoleos Tunnel are set to ease traffic and improve connectivity. These upgrades, along with Athens' strategic position as a bridge between Europe and the Middle East, make it even more appealing to investors.
Insiders know that these infrastructure improvements are not just about convenience. They are part of a broader plan to modernize the city and boost its real estate market. This makes Athens a smart choice for those looking to invest in a city on the rise.
With all these factors in play, it's no wonder that foreign investors are eyeing Athens as a prime real estate destination.
Sources: Global Property Guide, Xpat, Investment Visa
5) Foreign interest in Athens will grow due to Greek government incentives for international property buyers
In 2023, foreign buyers invested a substantial €1.32 billion in Greek real estate, with a significant portion of this investment directed towards Athens and other major cities. This shows a clear trend of increasing international interest in the Greek property market.
The Greek Golden Visa program has been particularly attractive to international investors, with applications from countries like China, Turkey, and the USA among the top. This program has been a key driver in attracting foreign buyers to Athens, as it offers residency benefits in exchange for property investment.
Athens has experienced a surge in property transactions involving international buyers, especially in neighborhoods like Koukaki and Pangrati. These areas are popular due to their proximity to cultural landmarks and recent infrastructure improvements, making them appealing to foreign investors.
Real estate agencies in Athens are reporting increased interest from foreign clients, driven by the city's rich historical and cultural heritage, as well as its improving infrastructure. This growing interest is further supported by media coverage highlighting Greece's property market as a hotspot for foreign investment.
The Greek government has been actively promoting the country as an attractive destination for foreign investors by offering tax incentives, cutting red tape, and investing in infrastructure. These efforts are designed to enhance property value and create a favorable environment for real estate investment.
Data from the Bank of Greece shows that residential property prices in central Athens increased by over 35% from 2018 to 2023, driven by foreign demand. This increase in property prices is a clear indicator of the growing interest from international buyers.
Sources: Global Citizen Solutions, The Luxury Playbook, D7 Visa
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6) Rental property demand in tourist areas will boost investor yields
The demand for rental properties in tourist-heavy areas like Athens has been on the rise, especially after the significant increase in tourist arrivals. In 2023, Athens saw over 7 million arrivals at its international airport, and Greece as a whole was expected to exceed 36 million tourists in 2024. This influx of visitors naturally boosts the demand for accommodations, including rental properties.
Short-term rental platforms like Airbnb have seen high occupancy rates, with typical listings in Athens being booked for 270 nights a year and a median occupancy rate of 74%. This indicates a strong demand for rental properties, particularly during peak tourist seasons. The average daily rate for these rentals is around €70, which is higher than in other parts of the city, suggesting that investors can expect higher yields from properties in tourist-heavy areas.
Moreover, there is growing interest from both local and international investors in Athens' real estate market. This interest is driven by factors such as improved infrastructure and urban renewal projects, which enhance the appeal of investing in tourist-heavy areas. Additionally, property prices in popular tourist destinations like Mykonos and Santorini have surged, with Mykonos experiencing a nearly 20% increase in 2023, reflecting the high demand for rental properties.
Sources: Xinhua News, Airbtics, The Luxury Playbook
7) High demand for properties in Kolonaki will continue because it is a prestigious neighborhood
Kolonaki is one of Athens' most prestigious neighborhoods, and its real estate market reflects that status.
In Kolonaki, property prices are notably high, with averages around €5,194 per square meter. This is a clear indicator of a strong market for premium properties, where luxury units can even reach €6,500 per square meter. Such figures highlight the area's appeal to those seeking upscale living.
The demand for luxury apartments here is fueled by both short-term rentals and long-term housing for expatriates. A significant factor is the Golden Visa program, which attracts non-EU investors looking for residency and solid returns. This has resulted in low vacancy rates, making it a lucrative option for property owners seeking steady rental income.
Kolonaki's charm is amplified by its upscale retail and dining options, drawing in high-end residents and visitors alike. Its strategic location near cultural and historical landmarks makes it even more attractive to those who value proximity to these sites. The limited availability of new development space in Kolonaki further contributes to its high demand, as the supply remains limited, pushing property prices higher.
For anyone considering a property investment in Athens, Kolonaki stands out not just for its luxury appeal but also for its potential for solid returns. The neighborhood's reputation and strategic advantages ensure that it remains a top choice for discerning buyers.
Sources: The Luxury Playbook, Get Golden Visa, Sofokleous10
8) Property prices in Athens will drop slightly in areas with too many new developments
In Athens, new housing projects have flooded the market, especially in areas like Korydallos and Attiki Square.
With this oversupply, vacancy rates have climbed, meaning there are more homes than people looking to buy or rent. This situation often leads to prices either stabilizing or dropping. In these neighborhoods, sellers are finding it tough to move properties, and buyers are expecting lower prices to make a deal.
Reports from the real estate market show that unsold homes are piling up, pushing sellers to consider price cuts. Rental yields, which are the returns landlords get from renting out properties, have also started to dip in these oversupplied areas. This suggests that the demand isn't matching the number of new homes available.
Local government data reveals that more building permits are being issued, adding to the oversupply problem. Real estate agents are noticing that selling new properties is becoming a challenge, leading to more negotiations and, ultimately, lower prices. In contrast, homes in well-established neighborhoods are holding their value better.
Price comparison studies show that homes in these oversupplied areas are cheaper than those in more stable parts of the city. This trend is a clear indicator of the market dynamics at play, where too many new developments are pushing prices down.
For potential buyers, this could mean opportunities to negotiate better deals in these areas, but it's essential to be aware of the market's fluctuations and the potential for further price adjustments.
Sources: To Vima, The Luxury Playbook, Global Property Guide
We have made this infographic to give you a quick and clear snapshot of the property market in Greece. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) Real estate in Piraeus will surge as the port area is redeveloped significantly
The district of Piraeus is set to experience a real estate boom due to significant redevelopment in the port area. In recent years, there have been substantial investments in port infrastructure, including the reconstruction of the Piraeus Tower and the new courthouse. These developments are part of broader efforts to enhance the port's functionality and appeal, attracting more businesses and residents to the area.
Property prices in Piraeus have already seen a notable increase, with a double-digit rise averaging 30% from 2021 to 2023. This trend is expected to continue, with projections indicating a further 7% increase from 2023 to 2024. The rising prices are driven by strong demand and investment inflows, partly fueled by the Golden Visa program, which has attracted international investors to the area.
Government initiatives have also played a crucial role in supporting the real estate sector's growth. Programs like "Home for Me 2" aim to help households purchase their first homes, while regulatory changes are expected to impact the market positively. Additionally, improved transportation links, such as the metro extension to the port, enhance connectivity and accessibility, making Piraeus an even more attractive place to live and invest.
Sources: Greek City Times, GrekoDom, eSales International
10) Property demand in Marousi will grow as it develops into a business and commercial center
Marousi is buzzing with activity as multinational giants like Google, Kodak, Bayer, and Siemens have set up their main offices there.
With over 200 million euros poured into new office spaces, Marousi is becoming the go-to spot for businesses wanting a slice of Athens. This investment is turning heads and making it a prime location for companies eager to establish themselves in the city.
Getting around Marousi is a breeze thanks to its top-notch transportation links like the A6 motorway, Athens Metro, and Athens Suburban Railway. This easy access is fueling economic growth and bringing more job opportunities, which in turn attracts more people to live and work in the area.
Property prices in Marousi are climbing, with a 35% increase from 2018 to 2023. This surge shows that more professionals are keen to live close to their workplaces, driving up demand for homes in the area.
As Marousi evolves into a business and commercial hub, expect property demand to rise even further. The area's transformation is not just about business; it's about creating a vibrant community where people want to live and work.
With its strategic location and growing business scene, Marousi is set to become one of Athens' most sought-after areas. The influx of companies and professionals is reshaping the landscape, making it an exciting time for potential property buyers.
Sources: Ered, Wikipedia, The Luxury Playbook
11) Demand for energy-efficient homes in Athens will grow due to stricter environmental regulations
In recent years, Athens has seen a significant rise in energy costs, particularly with a 21% increase in gas transmission tariffs and a 35% increase in LNG regasification tariffs. These rising costs make energy-efficient homes more attractive as they can help reduce household energy expenses.
The city of Athens has also established an Energy Poverty Alleviation Office, which provides guidance and support for energy-efficient home upgrades. This initiative encourages residents to improve their homes' energy performance, aligning with the push for sustainability.
Moreover, the European Union's updated regulations aim for a zero-emission building stock by 2050, impacting Greece and driving the need for energy-efficient homes. These regulations, combined with the growing awareness of climate change impacts, are influencing consumer preferences towards sustainable living options.
Sources: NetZeroCities, Argus Media, IEA
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12) Smart home features will become standard in new residential projects in Athens
Smart home technology is becoming a must-have in new homes in Athens.
In Greece, the smart home market is booming, with expectations to hit a whopping US$291.9 million by 2029. This surge is fueled by people wanting more convenience and efficiency in their homes. Imagine controlling your lights, thermostat, and security system all from your phone—it's no wonder folks are jumping on board.
People are also looking for ways to cut down on energy bills, and smart home tech is a game-changer. Some smart energy systems in Greece can slash electricity costs by over 90%. That's a huge saving for homeowners, making their homes not just smarter but also lighter on the wallet.
Tech advancements are making these systems even more efficient. With the latest smart devices, you can manage your energy use like a pro, ensuring you're not wasting a single watt. It's all about having control and making your home work for you.
Government incentives and EU rules are also nudging people towards smart homes. The EU Energy Performance of Buildings Directive is a big push, encouraging smart tech for better energy management. This means more smart meters and gadgets popping up in homes, aligning with the EU's energy goals.
In Athens, these trends are shaping the future of housing. New developments are increasingly featuring smart home tech as a standard, not a luxury. It's clear that smart homes are not just a trend but the new norm in the city.
Sources: Statista, EUNICE ENERGY GROUP, Markets and Markets
13) Investment in older buildings in Athens will rise due to new tax incentives for renovations
In 2023 and 2024, the Greek government introduced new tax incentives to encourage property renovations, particularly through the Renovate-Rent program. This program was upgraded to offer higher subsidies for renovation costs and interest-free loans for energy upgrades, making it more attractive for property owners to invest in older buildings.
The Greek real estate market has been on a growth trajectory, projected to increase by 3.2% annually. This growth is largely driven by foreign investment and the tourism sector, which has sparked interest in renovating properties in urban centers like Athens. The increased transaction value in the market suggests a favorable environment for property investments.
Successful renovation projects, such as the Passivistas project in Athens, have demonstrated the financial and technical feasibility of retrofitting older buildings. These projects not only result in energy savings and environmental benefits but also have the potential to increase property values, making them appealing to investors.
Sources: Solomon Realtors, Positive Energy Buildings, The Luxury Playbook, To Vima
14) More foreign investors will buy property in Athens because of favorable exchange rates
In recent years, Athens has become a hotspot for foreign real estate investors, and one of the key reasons is the favorable exchange rates. Back in 2023, the exchange rate between the Euro and other major currencies made Greek properties, especially in Athens, more appealing to international buyers.
Foreign direct investment in Greek real estate saw a significant rise, with a notable portion directed towards Athens. In 2023, foreign buyers accounted for a large majority of real estate purchases in Greece, with the total value reaching an all-time high. This trend continued into 2024, driven by the attractive exchange rates that made investments in Athens more lucrative.
Moreover, property prices in Athens were generally lower compared to other major European cities, offering foreign investors the potential for high returns. This comparative affordability, combined with the favorable exchange rates, made Athens an attractive destination for those looking to invest in real estate.
Sources: The Luxury Playbook, Von Poll Greece, Global Property Guide
We made this infographic to show you how property prices in Greece compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
15) Property tax changes will affect the appeal of some Athens neighborhoods
Changes in property tax regulations can significantly impact the attractiveness of certain neighborhoods in Athens. For instance, the Real Estate Transfer Tax, which has been set at 3.09% since 2021, directly affects the purchase price of properties. This means that if the tax rate changes, it could make buying property in certain areas more or less appealing, depending on whether the rate goes up or down.
Another important factor is the ENFIA, an annual tax based on the size, location, and characteristics of a property. The rates for ENFIA vary widely, from €0.0037 to €9.25 per square meter. This variation means that neighborhoods with lower ENFIA rates might become more attractive to potential buyers, as the cost of owning property there would be lower. Similarly, the municipal tax, TAP, which ranges from 0.025% to 0.035% of the property's objective value, adds to the overall tax burden and can influence neighborhood desirability.
Comparative analyses of property values in neighborhoods with different tax rates can highlight how these taxes affect property prices. For example, if a neighborhood has lower tax rates, it might attract more buyers and investors, leading to higher property values. This was evident in past case studies where neighborhoods that experienced tax reductions saw increased property sales and rental prices, indicating a rise in attractiveness.
Sources: Global Citizens Solutions, PwC, The Luxury Playbook
16) Luxury property investments will grow in Glyfada and other southern coastal areas because of their seaside location
In recent years, the southern coastal areas of Athens, like Glyfada, have become increasingly attractive for luxury property investments. One of the main reasons is the rising property prices in these areas. For instance, the average purchase price for residential developments in Glyfada has reached approximately €2,100 per buildable square meter, with some high-value properties going up to €10,000 per sq.m. This significant increase in property values makes Glyfada an appealing destination for investors.
Another factor contributing to this trend is the increased number of luxury property developments. The Ellinikon Project, a large-scale urban redevelopment in the southern suburbs, including Glyfada, is a major driver of luxury property investments. This project features residential, commercial, and leisure spaces, with all units in the coastal front's first phase already sold out. Additionally, investments around the Glyfada Golf Club indicate ongoing interest in luxury properties and amenities.
Moreover, the demand for sea-view properties is higher than ever. Properties with sea views in coastal regions like Glyfada and Vouliagmeni are highly sought after by both local and international buyers. This demand is fueled by the natural beauty and proximity to the sea, making these areas particularly attractive for luxury property investments.
Sources: Buy Greece, Greece Is, The Luxury Playbook
17) Athens property prices will stabilize as new housing meets demand
Athens is buzzing with new housing developments popping up everywhere.
Thanks to the high demand for urban properties, especially in trendy neighborhoods, the city is transforming into a real estate hotspot. Investors are flocking to these areas, drawn by their growing appeal and potential for returns.
The Greek government is also in on the action, offering incentives like the Golden Visa program. This initiative has been a magnet for foreign investors, further boosting the real estate market's growth.
What's interesting is how the market is balancing itself out. The transaction value in the Greek residential real estate market has been on a steady rise, showing a healthy equilibrium between supply and demand.
By the end of 2024, the market was expected to hit a transaction value of $7.94 billion, a testament to this balance. This figure highlights the confidence investors have in the market's stability and potential.
With these developments, Athens is not just a city of ancient history but also a modern real estate hub, attracting both local and international interest.
Sources: Global Property Guide, The Luxury Playbook
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.