What are the best property investments in Greece?

Authored by the expert who managed and guided the team behind the Greece Property Pack

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INVESTROPA

A team specialized in real estate investing in European countries (Greece, Italy, Spain, Portugal, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Greece. If you'd like to learn more about us, you can check our presentation page.

What types of properties are available in Greece and which are most profitable for investment?

Greece offers a diverse range of property types suitable for various investment strategies and budgets.

The main property categories include urban apartments in Athens and Thessaloniki, coastal villas and houses on islands like Crete, Corfu, and the Cyclades, traditional village houses in mainland areas, modern developments in emerging suburbs, and luxury properties along the Athens Riviera. Each type serves different market segments and investment goals.

For investment profitability, short-term rental properties in tourist hotspots consistently deliver the highest returns, with yields ranging from 6-10% annually. Prime locations include central Athens, where occupancy rates exceed 70% during peak season, and popular islands like Mykonos and Santorini where daily rates can reach €150-300 for well-appointed apartments. Long-term rental apartments in Athens and Thessaloniki generate steady yields of 5-7%, particularly in neighborhoods with good transport links and proximity to universities or business districts.

Luxury villas and unique properties like traditional cave houses command premium rents and show strong capital appreciation potential. Commercial properties in major cities present opportunities for experienced investors, though they require larger capital commitments.

It's something we develop in our Greece property pack.

The most consistently profitable properties are well-located apartments under 60 square meters in central areas, as they appeal to both local tenants and international tourists while remaining affordable for first-time investors.

Does it make financial sense to buy or rent property in Greece?

The decision between buying and renting in Greece depends primarily on your timeline, financial situation, and investment goals.

Buying makes strong financial sense if you plan to stay in Greece for more than 5 years, want to build equity, or seek rental income potential. Current mortgage rates average 3.7% for new housing loans, making monthly payments often competitive with rental costs in many areas. Property prices have appreciated 8-12% year-on-year as of mid-2025, providing capital gains opportunities alongside potential rental income.

Renting is more suitable for shorter stays, digital nomads, or those wanting maximum flexibility. Upfront costs are minimal compared to the significant deposits, taxes, and legal fees required for property purchase. However, rental prices have increased substantially, with central Athens seeing 11.5% rent increases in recent years, making long-term renting increasingly expensive.

The break-even point typically occurs after 5-7 years of ownership, factoring in purchase costs, taxes, and maintenance expenses. For investors, the calculation shifts significantly toward buying when considering rental income potential. Properties in tourist areas can generate 6-10% annual yields, far exceeding typical rental savings.

Foreign buyers benefit from Greece's favorable property tax environment, with annual holding costs averaging just 0.6-0.8% of property value, including taxes, insurance, and maintenance.

How have property prices evolved over the past 10 years and what's the forecast for the next 5?

Greece's property market has undergone a remarkable transformation over the past decade, following a dramatic recovery pattern.

From 2014-2017, property prices hit their lowest point following the Greek financial crisis, with values falling 42-50% from pre-crisis peaks. This created exceptional buying opportunities for savvy investors. The recovery began in earnest from 2018, with steady annual increases of 3-7% initially, accelerating to 7-15% in recent years as international confidence returned.

The period 2020-2024 saw particularly strong growth, driven by economic recovery, Golden Visa investment, tourism resurgence, and supply shortages in desirable areas. Central Athens experienced some of the strongest appreciation, with quality apartments rising 40-60% from their 2017 lows. Island properties and coastal areas showed similar patterns, though with greater volatility based on tourism trends.

The forecast for 2025-2030 indicates continued but moderating growth. Athens property prices are expected to rise 5-7% annually through 2025, gradually stabilizing at 3-4% by 2028-2030. This moderation reflects market maturation, increased supply from new developments, and policy measures to cool speculation in some areas.

Key growth drivers remain strong: Greece's projected GDP growth of 2.3% in 2025 and 2026, continued tourism expansion with over 40 million annual visitors, ongoing urban regeneration projects like the €8 billion Ellinikon development, and sustained foreign investment despite higher Golden Visa thresholds.

Regional variations will continue, with emerging areas potentially outperforming established markets as investors seek value opportunities.

What are current real estate market trends favoring buyers or sellers?

As of mid-2025, Greece's real estate market remains tilted in favor of sellers, though with important nuances by location and property type.

Seller advantages include strong demand outpacing supply in most urban and tourist areas, continued price appreciation averaging 8-12% year-on-year, foreign buyer activity remaining robust despite regulatory changes, and low inventory levels in desirable neighborhoods creating bidding competition. Properties in prime locations often receive multiple offers, particularly well-renovated apartments under €400,000 and coastal properties suitable for short-term rentals.

However, emerging buyer opportunities exist in specific segments. Secondary cities like Patras, Volos, and Chania offer better value propositions with lower competition. The new short-term rental regulations implemented in 2025 have created temporary uncertainty, leading some investors to sell properties that no longer qualify for Airbnb use, increasing inventory in certain areas.

Market dynamics vary significantly by price range. Properties under €250,000 face intense competition from both investors and owner-occupiers. The €250,000-€500,000 segment shows more balanced conditions, particularly outside prime Athens areas. Luxury properties above €500,000 have longer selling periods but maintain strong pricing power in premium locations.

Economic factors supporting the seller's market include Greece's economic stability, unemployment declining to 9.8%, and tourism revenue reaching record levels of €20.5 billion in 2023, up 12.3% from pre-pandemic levels.

Smart buyers are focusing on emerging neighborhoods, properties requiring minor renovation, and markets slightly outside traditional hotspots where value opportunities remain.

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How does the property buying process work in Greece from search to registration?

The Greek property buying process follows a structured legal framework that typically takes 2-4 months to complete.

The process begins with property search through local agents or online portals, followed immediately by engaging a Greek lawyer—essential for foreign buyers to navigate legal requirements and due diligence. You'll need to obtain a Greek tax number (AFM) and open a local bank account, both required for the transaction.

Once you identify a property, submit an offer and sign a reservation agreement to remove it from the market. Your lawyer then conducts comprehensive due diligence, checking title clarity, outstanding debts, building permits, zoning compliance, and any legal encumbrances. This stage is crucial and can reveal issues that might derail the purchase.

After successful due diligence, sign a preliminary contract with a 10% deposit placed in escrow. This legally binds both parties to complete the transaction. The final contract signing occurs before a notary public, where you pay the remaining balance, property transfer tax (3% of purchase price), and various fees.

The notary then registers the deed with the Land Registry or Cadastre system, officially transferring ownership. Total transaction costs typically range from 7-10% of purchase price, including taxes, legal fees, notary costs, and agent commissions.

Key documents required include passport, AFM tax number, bank statements proving funds source, and any relevant visas or residency documents. The process is more streamlined for EU citizens but remains accessible for all foreign nationals.

Professional guidance is highly recommended throughout, as Greek property law includes specific requirements that differ from other countries' systems.

Who typically invests in Greek real estate and what are their motivations?

Greece attracts a diverse international investor base, each group bringing distinct motivations and investment strategies.

Foreign investors dominate certain market segments, with Asian investors accounting for approximately 65% of foreign property acquisitions in 2023, primarily driven by Golden Visa requirements and portfolio diversification. German, British, and other EU buyers focus heavily on lifestyle investments, purchasing holiday homes and retirement properties in coastal areas. American investors have increased significantly, attracted by relative affordability compared to US coastal markets and the appeal of Mediterranean lifestyle.

Israeli investors have become particularly active in Athens luxury markets, while Chinese buyers continue seeking Golden Visa pathways despite increased minimum thresholds. Brazilian, Australian, and South African investors represent emerging groups, often leveraging cultural connections to Europe and seeking European residency options.

Local Greek investors remain active in the residential market, particularly in mid-priced segments, often focusing on long-term rental properties in university areas or emerging neighborhoods. The Greek diaspora represents a significant group, with emotional connections driving purchases of family properties or investment in heritage areas.

Motivations vary significantly by investor type. Investment-focused buyers seek rental income and capital appreciation, particularly in tourist areas. Lifestyle investors prioritize location, climate, and cultural attractions over pure financial returns. Golden Visa applicants require residency benefits alongside investment potential.

Digital nomads and remote workers increasingly target properties in Athens and island locations that offer high-speed internet and co-working spaces. Retirees focus on healthcare access, community amenities, and cost of living advantages.

Common threads include Greece's political stability, EU membership benefits, favorable tax environment, and strong tourism fundamentals supporting rental markets.

What are smart reasons to invest in Greek property and what are risky motivations?

Smart investment motivations are grounded in Greece's fundamental economic and tourism strengths, while risky motivations often stem from emotional decisions or unrealistic expectations.

Intelligent reasons to invest include capitalizing on Greece's projected GDP growth of 2.3% in 2025-2026, which exceeds eurozone averages and supports property appreciation. Tourism revenue reaching €20.5 billion in 2023 with continued growth projections provides sustainable rental demand. The relative affordability compared to other Mediterranean markets offers better entry points and higher yield potential.

Strategic investors recognize Greece's infrastructure improvements, including the €8 billion Ellinikon project and expanded transportation networks, which drive long-term value creation. The Golden Visa program provides EU residency benefits, while the country's improved fiscal position since the crisis creates a more stable investment environment.

Portfolio diversification into European real estate, hedge against inflation through tangible assets, and the potential for lifestyle benefits while generating returns represent sound strategic thinking.

It's something we develop in our Greece property pack.

Risky motivations include buying solely for personal use during peak tourist season, which severely limits rental income potential. Purchasing in overheated markets without considering fundamental value, underestimating renovation and maintenance costs for older properties, or ignoring new short-term rental regulations that could affect profitability.

Emotional purchases based purely on vacation experiences, expecting immediate high returns without understanding local market dynamics, or failing to conduct proper due diligence on legal and structural issues represent common investor mistakes.

Unrealistic expectations about rental yields, particularly in saturated tourist markets, or assuming all Greek properties will appreciate equally regardless of location and condition often lead to poor investment outcomes.

What property can you realistically buy with different budget ranges?

What are common investment mistakes in Greek property and how to avoid them?

Property investment mistakes in Greece often stem from insufficient research, legal oversights, and unrealistic expectations about returns and regulations.

The most critical mistake is skipping comprehensive due diligence, particularly legal and structural inspections. Many properties, especially older ones, have building permit issues, unauthorized extensions, or outstanding debts that can create major problems post-purchase. Always engage a qualified Greek lawyer and independent structural engineer before committing.

Underestimating total costs represents another frequent error. Beyond the purchase price, budget for 7-10% in transaction costs, plus potential renovation expenses that often exceed initial estimates by 30-50%. Many investors fail to account for ongoing costs like property taxes, insurance, maintenance, and property management fees.

Ignoring new short-term rental regulations has caught many investors off-guard in 2025. Properties that previously qualified for Airbnb may no longer meet current standards, significantly impacting expected rental income. Research local zoning laws and building classifications before purchasing for short-term rental purposes.

Location mistakes include buying in oversaturated tourist areas where competition reduces profitability, or choosing remote locations that look attractive but have limited rental demand. Focus on areas with year-round appeal, good transport links, and diverse tenant bases.

Overestimating rental yields based on peak season rates without factoring in seasonality, vacancy periods, management costs, and maintenance expenses leads to cash flow problems. Conservative projections based on net returns typically prove more accurate than optimistic gross calculations.

Currency risk affects non-euro investors, while tax implications in both Greece and home countries require professional advice to optimize structures and avoid double taxation issues.

Which areas offer the best investment potential across different strategies?

Investment potential varies significantly across Greece depending on your strategy, with different areas excelling for different approaches.

For long-term rental investments, central Athens neighborhoods like Kypseli, Exarchia, and areas near universities offer strong tenant demand with yields of 5-7%. Thessaloniki's center provides similar opportunities with lower entry costs. These areas benefit from young professional populations, students, and expatriate workers seeking convenient locations with good transport links.

Short-term rental hotspots remain focused on tourist areas, though new regulations require careful property selection. Athens center, particularly near the Acropolis and Plaka, continues generating high yields for compliant properties. Island destinations like Crete (Chania, Rethymno), Corfu, and Rhodes offer seasonal rental potential with daily rates of €80-200 for quality properties.

Emerging investment areas include Patras, Greece's third-largest city, where university demand and improving infrastructure create opportunities. Volos offers proximity to Pelion peninsula tourism while maintaining affordability. The Athens Riviera suburbs of Glyfada and Vouliagmeni provide luxury market exposure with strong capital appreciation potential.

For capital appreciation, focus on areas benefiting from infrastructure development. The Ellinikon project area and southern Athens suburbs will benefit from the new metro extensions and urban regeneration. Northern Athens suburbs like Chalandri and Maroussi offer established amenities with continued development potential.

Budget-conscious investors should consider secondary islands like Naxos, Paros, or mainland coastal towns where tourism is developing but prices remain reasonable.

It's something we develop in our Greece property pack.

Avoid oversaturated markets like central Mykonos or Santorini unless you have substantial capital and experience, as competition and regulations create challenging conditions for new investors.

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.

What should you know about long-term rental investments in Greece?

Long-term rental investments in Greece offer stable returns and lower management complexity compared to short-term alternatives, with specific markets showing particularly strong fundamentals.

Target areas for long-term rentals include central Athens neighborhoods experiencing urban regeneration, such as Kypseli, which has transformed from a declining area to a trendy district attracting young professionals and artists. Ano Daphne, Korydallos, and America Square offer similar opportunities with yields consistently reaching 6-7% annually.

Tenant demographics vary by location but commonly include international company employees (particularly in tech sector), university students and researchers, young Greek professionals priced out of homeownership, and expatriate families seeking stable accommodation. Major employers like Google, Netflix, and Teleperformance in Athens create steady tenant demand for quality apartments under 60 square meters.

Tenant preferences focus on renovated properties with modern amenities, reliable internet connectivity for remote work, proximity to metro stations or bus routes, and access to cafes, restaurants, and cultural attractions. Energy-efficient features are increasingly important, both for cost savings and environmental consciousness.

Expected returns vary by location and property quality. Central Athens yields average 5-7%, while secondary cities like Thessaloniki or Patras may reach 6-8% due to lower purchase prices relative to rental rates. University towns command premium rents during academic year but may experience summer vacancy.

Rental growth has averaged 8-11% annually in recent years, driven by housing shortages and increased demand from both locals and internationals. Early-extendable contracts allow annual rent adjustments, providing inflation protection and yield improvement over time.

Management considerations include finding reliable tenants through proper screening, maintaining properties to attract quality renters, understanding Greek tenancy laws, and accounting for occasional vacancy periods between tenants.

How do short-term rentals work in Greece and what are current regulations?

Short-term rental operations in Greece have become increasingly regulated as of 2025, requiring careful compliance to maintain profitability and legal operation.

Prime locations for short-term rentals continue to be central Athens (where demand remains strong despite regulation), major islands like Crete, Corfu, and Rhodes, and emerging destinations like Patras. However, new regulations effective October 2025 significantly restrict eligible properties. Properties must be classified as primary residential spaces under Greek building codes—converted warehouses, storage rooms, or industrial spaces are now prohibited from short-term rental use.

Target guests include international tourists (60-69% of bookings), domestic travelers, digital nomads, and business travelers. Peak season runs June through September for island destinations, while Athens maintains more consistent year-round demand. Average daily rates vary widely: Athens center €50-120, premium islands €100-300, secondary destinations €40-80.

Current regulations require registration in the "Register of Short-Term Property Lets," proper insurance coverage, electrical and safety certifications, and pest control documentation. Properties must have natural lighting, proper ventilation, and air conditioning. Building management approval may be required, and some areas have restrictions limiting rentals to 90 days per year.

Expected income and yields depend heavily on location and management quality. Well-managed properties in prime locations can achieve 8-12% annual yields, but this requires active management, professional photography, dynamic pricing, and excellent guest service. Seasonal properties may generate 60-70% of annual income during 4-month peak periods.

Professional property management costs typically range 15-25% of rental income but can significantly improve occupancy rates and guest satisfaction. Self-management requires substantial time investment for guest communication, cleaning coordination, and maintenance oversight.

Tax implications include professional classification for owners of multiple properties, with stricter reporting requirements and potentially higher tax rates.

What makes a property a good investment and what are red flags?

Successful property investments in Greece share common characteristics that create both rental income potential and capital appreciation, while red flags often signal hidden costs or limited marketability.

Good investment properties feature prime locations with strong fundamentals: proximity to transportation hubs, tourist attractions, universities, or business districts that ensure consistent demand. Legal clarity is essential—clear title, proper building permits, and compliance with zoning regulations prevent future complications. Properties with recent renovations or good structural condition minimize immediate capital expenditure needs.

Market appeal factors include appropriate size for target tenants (typically 30-60 square meters for maximum flexibility), modern amenities expected by today's renters, and energy efficiency features that reduce operating costs. Properties in areas benefiting from infrastructure development or urban regeneration projects offer additional appreciation potential.

Financial indicators of good investments include realistic rental yields based on current market rates, purchase prices aligned with comparable sales, and total return potential considering both income and appreciation. Properties priced at market value or slight discounts provide better entry points than premium-priced assets.

Red flags include legal complications such as unclear ownership, missing building permits, unauthorized modifications, or pending legal disputes. Properties requiring major structural repairs, significant code compliance upgrades, or extensive renovations often cost more than anticipated.

Location red flags encompass areas with declining populations, poor transport links, high crime rates, or oversaturation of similar rental properties. Buildings with high maintenance costs, problematic tenant bases, or restrictive rental policies limit investment flexibility.

Market red flags include unrealistic seller expectations, properties sitting on market for extended periods without price adjustments, or purchases based purely on emotional appeal rather than financial fundamentals.

Are there better property investment opportunities than Greece with similar lifestyle benefits?

Greece offers a compelling combination of investment returns, lifestyle benefits, and market accessibility that is difficult to replicate exactly, though several alternatives provide different advantages depending on priorities.

Portugal presents the most direct comparison, with similar climate, coastal lifestyle, and residency-by-investment programs. However, property prices in Lisbon and Porto have risen significantly above Greek levels, while rental yields are generally lower at 3-5%. Portugal's Golden Visa minimum investment of €500,000 also exceeds Greece's €250,000 threshold outside prime areas.

Spain offers larger markets and established rental tourism, but prime coastal areas like Costa del Sol or Barcelona command premium prices with yields often below 4%. Secondary Spanish cities may offer better value, though without Greece's current growth momentum or affordable entry points.

Italy provides cultural appeal and diverse markets, but bureaucratic complexity often exceeds even Greece's requirements, while many attractive areas face population decline challenges. Northern Italian cities offer better economic fundamentals but higher costs and lower yields.

Emerging Eastern European markets like Croatia or Montenegro may offer higher capital appreciation potential, but with greater political risks, less developed legal frameworks, and limited rental markets outside peak tourist seasons.

Cyprus combines EU membership with offshore tax benefits, though the property market is smaller and less liquid than Greece's. Bulgaria and Romania provide very affordable entry points but lack the tourism infrastructure and international appeal that support Greek rental markets.

Greece's unique advantages include its current economic recovery phase offering better value timing, established tourism infrastructure supporting rental demand, relatively straightforward legal system compared to some alternatives, and EU membership providing investment security.

For pure investment returns, some emerging markets may outperform, but Greece's combination of lifestyle appeal, political stability, rental yield potential, and capital appreciation prospects remains highly competitive in the Mediterranean context.

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.

Sources

1. The Luxury Playbook - Greece's Real Estate Market Analysis & Forecast
2. Global Property Guide - Greece's Residential Property Market Analysis
3. Investropa - 18 Strong Trends for 2025 in Greece Property Market
4. NTL Trust - The Ultimate Guide to Greece: Europe's Best-Value Property Market
5. Benoit Properties - Greece Housing Market Trends 2025
6. Global Property Guide - Rental Yields in Greece 2024
7. Travel and Tour World - Greece Dominates Europe's Summer 2025 Travel Surge
8. Airbtics - Vacation Rentals Greece: Top Markets for Investment
9. Immigrant Invest - Greece Real Estate Investment Guide for Foreigners 2025
10. Expat Law - New Short-Term Rental Rules in Greece 2025