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Athens offers some of Europe's most attractive rental yields, particularly for small apartments in central districts where gross returns range from 6% to 9%.
As we reach mid-2025, the Athens rental market continues to demonstrate resilience with strong tenant demand, low vacancy rates, and competitive returns that outperform many Western European capitals. The combination of affordable property prices, growing tourism, and a thriving expat community creates compelling opportunities for income-focused investors.
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Athens rental yields range from 5% to 9% gross, with the highest returns in central neighborhoods and small apartments. Net yields typically run 1.5-2% lower after expenses.
Short-term rentals can achieve higher gross yields (8-15%) but face increased costs and new regulatory restrictions, while long-term rentals offer stability with 90-97% occupancy rates.
| Key Metric | Value/Range | Notes |
|---|---|---|
| Average Gross Yield (Athens) | 5.0-6.5% | Citywide average, higher in central areas |
| Best Performing Neighborhoods | 6-8% gross | Exarchia, Kypseli, Amerikis Square |
| Luxury Areas (Kolonaki, Glyfada) | 3.5-4.5% gross | Lower yields due to higher property prices |
| 1-Bedroom Rent (Central) | €500-1,300/month | Varies significantly by neighborhood |
| Short-term vs Long-term | 8-15% vs 4-7% | Short-term has higher costs and risks |
| Net Yield (after expenses) | 3.5-5% | 1.5-2% below gross yields |
| Occupancy Rate | 90-97% (long-term) | Very low vacancy in central Athens |
What's the current average rental yield in Athens for apartments and houses?
The average gross rental yield in Athens stands at approximately 5.0% citywide as of June 2025, with significant variation based on location and property type.
Central Athens apartments typically deliver the strongest returns, with gross yields ranging from 6% to 9% for well-located, renovated properties. Small apartments and studios in high-demand areas consistently outperform larger units, as they attract both local tenants and international visitors.
Suburban developments and newer properties in areas like Agios Dimitrios and southern Athens average 4.5% to 6% annually. These areas offer more affordable entry points but generally lower rental income relative to central districts.
Individual houses in Athens typically yield between 4% and 6% gross, depending on location and condition. Properties with outdoor space and parking command premium rents, particularly in family-oriented neighborhoods near good schools and amenities.
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Which Athens neighborhoods offer the highest and lowest rental yields?
The highest rental yields in Athens are consistently found in affordable, high-demand neighborhoods that attract students, young professionals, and tourists.
| Neighborhood | Gross Yield Range | Key Characteristics |
|---|---|---|
| Amerikis Square | 6.9% | University area, strong student demand |
| Exarchia | 6-7% | Bohemian area, young professionals, nightlife |
| Kypseli | 6-7% | Affordable, gentrifying, good transport links |
| Aigaleo | 6.9% | Suburban, affordable housing, families |
| Korydallos | 6.3% | Industrial area, working-class neighborhood |
| Kolonaki | 3.5-4.5% | Luxury district, high property prices |
| Glyfada | 3.5-4.5% | Coastal luxury, premium pricing |
The lowest yields are found in prime luxury districts where property prices are significantly higher but rental rates don't proportionally increase. Kolonaki, Plaka, and Kifisia typically deliver 3.5% to 4.5% gross yields due to their premium positioning and high acquisition costs.
Monthly rental income expectations for 1-bedroom, 2-bedroom, and 3-bedroom apartments in popular areas
Rental income varies dramatically across Athens neighborhoods, with central areas commanding significantly higher monthly rents.
In Exarchia, 1-bedroom apartments typically rent for €500-800 monthly, while 2-bedroom units achieve €800-1,100. This neighborhood offers excellent value for money with strong tenant demand from students and young professionals attracted to its vibrant cultural scene.
Koukaki, positioned near major tourist attractions, sees 1-bedroom apartments renting for €700-1,000 monthly and 2-bedroom units for €1,100-1,600. The area benefits enormously from tourism demand and proximity to the Acropolis Museum.
Kolonaki represents the luxury end of the market, with 1-bedroom apartments commanding €1,000-1,300 monthly, 2-bedrooms €1,700-2,000, and 3-bedrooms reaching €2,300-3,500 or higher. These premium rents reflect the neighborhood's exclusive status and high-end amenities.
Glyfada offers coastal living with 1-bedrooms renting for €600-900 monthly, 2-bedrooms for €1,100-1,700, and 3-bedrooms for €1,800-2,500. The seaside location and beach access justify higher rents compared to inland suburban areas.
Short-term rental yields versus long-term rentals in central Athens
Short-term rentals in central Athens can achieve gross yields of 8-15%, significantly higher than long-term rentals which typically yield 4-7%.
| Rental Type | Gross Yield | Net Yield | Occupancy Rate |
|---|---|---|---|
| Short-term (Airbnb) | 8-15% | 5-7% | 70-72% |
| Long-term | 4-7% | 3.5-5% | 90-97% |
| Short-term (tourist areas) | 10-15% | 6-8% | 75-80% |
| Long-term (central) | 5-8% | 4-6% | 95-98% |
| Short-term (suburban) | 6-10% | 3-6% | 60-70% |
However, short-term rentals face significantly higher operational costs, typically consuming 40-60% of gross revenue compared to 7-15% for long-term rentals. Management fees, cleaning, utilities, and platform commissions substantially reduce net returns.
As of January 2025, Athens implemented a one-year ban on new short-term rental registrations in popular districts including Kolonaki, Koukaki, Pangrati, and Exarchia. This regulatory shift makes existing short-term rental licenses more valuable but creates uncertainty for new investors.
Long-term rentals offer superior stability with occupancy rates of 90-97% compared to 70-72% for short-term rentals. The predictable income stream and lower management requirements make long-term rentals more attractive for hands-off investors.
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How rental yields in Athens have changed over the past 5 years
Athens rental yields have experienced a complex evolution over the past five years, with overall trends showing stabilization after significant market corrections.
From 2020 to 2022, rental yields initially declined as property prices recovered faster than rental rates. The market was emerging from a decade-long recession that had severely depressed property values, leading to compressed yields as prices normalized.
Since 2023, rental yields have begun stabilizing as rental rates increased 5-6% year-over-year, matching or slightly exceeding property price growth. This represents a fundamental shift from the previous decade when rents consistently declined.
Current yields in mid-2025 are considered sustainable, with central Athens maintaining competitive returns of 6-9% for small apartments. The tourism recovery and increased expatriate population have provided strong rental demand support.
Looking forward, yields are expected to remain stable or improve slightly as rental growth continues to match property price appreciation, creating a balanced investment environment for income-focused investors.
Property types with the best rental yield-to-investment ratios
Small, renovated apartments consistently deliver the highest rental yield-to-investment ratios in Athens, particularly studios and 1-bedroom units in central neighborhoods.
- Studio apartments in university areas: These typically yield 7-9% gross with lower acquisition costs and strong tenant demand from students and young professionals.
- 1-bedroom renovated apartments: Central locations achieve 6-8% yields with broad appeal to singles, couples, and short-term visitors.
- Older buildings with renovation potential: Properties requiring updating offer lower entry prices and higher post-renovation yields, particularly in gentrifying neighborhoods.
- Multi-unit properties: Buildings with multiple small apartments allow for diversified income streams and reduced vacancy risk.
- Properties near metro stations: Transport connectivity significantly enhances rental demand and supports premium pricing for any property type.
Larger apartments (3+ bedrooms) typically underperform due to higher acquisition costs and more limited tenant pools. Luxury properties in prime areas often prioritize capital appreciation over rental yield.
Key factors impacting rental yields in Athens
Location remains the dominant factor affecting rental yields, with proximity to metro stations, universities, and tourist attractions providing the strongest performance drivers.
Property condition significantly impacts rental rates, with renovated apartments commanding 20-30% higher rents than dated properties. Modern amenities like air conditioning, updated kitchens, and energy-efficient features are increasingly essential for competitive positioning.
Tourist demand creates substantial yield premiums in neighborhoods like Koukaki, Plaka, and areas near the Acropolis. The 79.71% international visitor rate in Athens directly supports short-term rental markets in these zones.
University proximity drives consistent rental demand, particularly in areas around the National Technical University of Athens and other major educational institutions. Student housing demand remains relatively recession-proof and supports stable occupancy rates.
Transportation infrastructure heavily influences rental desirability. Properties within 500 meters of metro stations typically command 15-25% rental premiums compared to similar properties requiring bus transportation.
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Typical monthly and annual landlord expenses affecting net yields
Understanding landlord expenses is crucial for calculating realistic net rental yields in Athens, as these costs typically reduce gross yields by 1.5-2%.
| Expense Category | Monthly Cost Range | Annual Impact |
|---|---|---|
| Building maintenance (koinohrista) | €30-80 | €360-960 |
| Property tax (ENFIA) | Variable | €2-5 per m² |
| Income tax on rental | 15-45% of income | Progressive scale |
| Management fees (long-term) | 7-15% of rent | €350-900 annually |
| Insurance | €8-25 | €100-300 |
| Maintenance/repairs | €20-50 | €250-600 |
| Vacancy allowance | 3-5% of rent | €150-400 |
Short-term rental expenses are substantially higher, with management fees reaching 20-25% of gross revenue, plus additional costs for cleaning, utilities, platform commissions, and frequent maintenance requirements.
Net yields after all expenses typically range from 3.5% to 5% for long-term rentals and 5% to 7% for well-managed short-term rentals in prime locations.
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Average occupancy rates in central Athens versus coastal and suburban zones
Central Athens maintains exceptionally high occupancy rates, with long-term rentals achieving 90-97% occupancy and short-term rentals averaging 70-72% despite seasonal fluctuations.
The tight supply situation in central districts like Exarchia, Koukaki, and Kolonaki supports minimal vacancy rates. Properties near universities and metro stations experience virtually no extended vacancy periods due to consistent demand from students, professionals, and expats.
Coastal areas like Glyfada show more seasonal variation, with peak occupancy during summer months but potential for reduced demand during winter. However, year-round residents and the area's business community help maintain steady baseline occupancy above 85%.
Suburban zones generally achieve 85-92% occupancy for long-term rentals, slightly lower than central areas due to increased supply and reduced transportation convenience. Family-oriented suburbs often maintain stable long-term tenants, compensating for longer initial letting periods.
Short-term rental occupancy varies significantly by location, with tourist-heavy central areas achieving 75-80% occupancy compared to 60-70% in suburban locations less accessible to major attractions.
Athens rental yields compared to other Greek cities
Athens consistently outperforms other Greek cities in rental yield potential, particularly for small apartments and properties targeting international tenants.
Thessaloniki, Greece's second-largest city, averages 4.3-5.0% gross yields citywide, with central and waterfront areas reaching up to 7%. The northern city offers lower property prices but also reduced rental rates compared to Athens.
Popular island destinations like Crete (Chania and Heraklion) achieve 4.5-7.5% yields, with short-term rentals performing particularly well during tourist season. However, these markets face greater seasonality and supply challenges.
Santorini delivers 4-6% yields but requires substantial initial investment due to premium property prices. The extreme seasonality and high operational costs for short-term rentals can significantly impact net returns.
Athens' combination of year-round demand from students, professionals, tourists, and expats provides more stable and higher overall yields compared to seasonal tourist destinations or smaller Greek cities with limited international appeal.
Athens rental yields versus other European capitals and Mediterranean cities
Athens offers significantly higher rental yields than most Western European capitals, making it particularly attractive for income-focused investors.
| City | Average Gross Yield | Key Characteristics |
|---|---|---|
| Athens | 5.0-6.5% | High yields, affordable entry prices |
| Lisbon | 3.8-4.6% | Lower yields, higher property prices |
| Valencia | 4.0-5.0% | Comparable to Athens average |
| Zagreb | 4.0-5.0% | Similar market dynamics |
| Berlin | 3.4% | Much lower yields, high prices |
| Paris | 3.1% | Premium market, low yields |
| Amsterdam | 3.7% | Expensive, regulated market |
Athens substantially outperforms major European capitals like Berlin (3.4%), Paris (3.1%), and Amsterdam (3.7%) in rental yield terms. This performance gap reflects both Athens' relatively affordable property prices and competitive rental rates.
Compared to other Mediterranean markets, Athens offers similar or superior yields to Valencia and significantly better returns than Lisbon, while maintaining lower entry costs and fewer regulatory restrictions than many Western European markets.
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Expected returns from a €150,000 investment in Athens today
A €150,000 investment in Athens property can reasonably expect gross annual returns of €7,500-€10,500, translating to 5-7% gross yield depending on location and property type.
After accounting for all expenses including maintenance, taxes, management fees, and occasional vacancy, net annual returns typically range from €5,250-€7,500, representing 3.5-5% net yield.
Monthly net income expectations range from €625-€875 before personal taxation, providing steady cash flow for investors seeking regular income. This assumes a well-located property in a desirable neighborhood with consistent tenant demand.
The typical ROI timeline for rental income alone spans 15-20 years for full capital recovery. However, this timeline can be significantly shortened when considering capital appreciation, which has averaged 7-9% annually in recent years.
Properties purchased in emerging neighborhoods or those requiring minor renovation may achieve faster payback periods through both improved rental yields and enhanced capital appreciation as areas develop and gentrify.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Athens continues to offer some of Europe's most attractive rental yields, particularly for investors targeting small, centrally located apartments in high-demand neighborhoods.
With yields ranging from 5-9% gross and strong underlying fundamentals including tourism growth, university demand, and increasing expat populations, Athens presents compelling opportunities for both novice and experienced property investors in 2025.
Sources
- The Luxury Playbook - Athens Real Estate Market
- Investropa - Athens Real Estate Trends 2025
- Global Property Guide - Greece Rental Yields
- Investropa - Athens Property Investment Guide
- Investropa - Best Athens Neighborhoods 2025
- NTL Trust - Greece Property Market Guide
- Tranio - Athens Short-term Rental Investment
- Euronews - Athens Short-term Rental Restrictions