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What will happen in Greece’s 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 Greece, 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) Property prices in Greece will keep rising due to low supply and high demand from locals and foreigners
Property prices in Greece are climbing, and this trend shows no signs of slowing down.
One big reason is the limited supply of new homes. Building new properties, especially in cities like Athens and Thessaloniki, is tough due to strict regulations and land constraints. This scarcity means more people are vying for the same homes, naturally pushing prices up.
Meanwhile, demand is heating up from both locals and foreigners. The Golden Visa program has been a hit, drawing in foreign investors. In 2023, these buyers poured about €3 billion into the market, keeping demand high and prices rising.
Greece's thriving tourism industry is also playing a part. The surge in vacation home and rental property demand in tourist hotspots is making these properties more valuable. Plus, Greece's sunny climate and prime location are magnets for retirees and expats, adding to the property demand.
Sources: Global Property Guide, eSales International, The Luxury Playbook
2) Rural rents in Greece will stay steady as urbanization continues
Rents in Greece's rural areas are expected to remain stable as more people move to cities.
Over the last ten years, rents in the countryside have barely budged, even though Greece saw a 19% drop in rents overall, mostly in cities. This trend is tied to the fact that 80.67% of Greeks now live in urban areas, showing a clear shift from rural to urban living. Cities like Athens and Thessaloniki are getting all the infrastructure upgrades, leaving rural areas with less demand for new housing.
In cities, property prices are soaring; Athens saw a 10.93% jump in 2023 alone. Meanwhile, rural areas aren't seeing the same kind of development or migration, which keeps rent prices steady. This is good news if you're looking to buy property in the countryside, as the lack of new housing projects means less competition and stable prices.
Real estate experts note that the demand in urban areas is much higher, pushing prices up. In contrast, rural areas are more laid-back, with fewer people moving in and out. This means that even when the national economy shifts, rural rents don't fluctuate much. It's a stable market, perfect for those who prefer a quieter lifestyle without the hustle and bustle of city life.
So, if you're considering buying property in Greece's rural areas, you can expect a stable investment. The urbanization trend is likely to continue, keeping rural rents steady. This makes it an attractive option for those looking to escape the city while still making a sound financial decision.
Sources: Global Property Guide, Trading Economics, Vaia
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.
3) Rental yields in Athens will rise as more digital nomads choose the city
Rental yields in Athens are set to rise as the city becomes a hotspot for digital nomads.
In recent years, Athens has seen a surge in digital nomads, with Greece ranking among the top 15 destinations for these remote workers. This trend is largely due to the city's affordability and vibrant lifestyle, which are major draws for those looking to balance work and leisure. The influx of digital nomads is not just a passing phase; it's a growing movement that is reshaping the rental market in Athens.
Platforms like Airbnb are booming, as more digital nomads and tourists seek short-term rentals in the city. This has led to increased property values, especially in trendy neighborhoods. The Greek government is also playing a role by introducing initiatives like the Digital Nomad Visa, which allows remote workers to stay in Greece longer, further boosting demand for rental properties.
Athens has made significant strides in its internet infrastructure, with widespread fiber optic technology and 5G coverage now available. This is a crucial factor for digital nomads who need reliable internet for their work. As a result, the demand for furnished apartments is on the rise, and property owners are seizing the opportunity to increase rental yields.
With the city's growing appeal, property owners are seeing a chance to capitalize on this trend. The demand for rental properties is not just about location anymore; it's about offering the right amenities to attract digital nomads. This shift is creating a competitive market where rental yields are expected to climb as more property owners adapt to meet the needs of this new wave of renters.
As Athens continues to attract digital nomads, the city's rental market is evolving. Property owners who can offer the right mix of location, amenities, and connectivity are likely to see significant returns on their investments. The future looks promising for those who can tap into this growing market.
Sources: Georgaki Law Firm, Citizen Remote
4) Athens rents will keep rising because the population is growing and housing is limited
Athens is growing, with its metro area population reaching 3,155,000 in 2024.
As more people flock to the city, the demand for housing is skyrocketing. Properties in Athens are being snapped up in just 5-7 days, a testament to the city's appeal. This quick turnover is largely due to the abundance of job opportunities and the vibrant lifestyle Athens offers. However, the city faces a challenge: only 7,500 unused properties are available for development, which falls short of meeting the current demand.
Rental prices are climbing, especially in the Lower Ground-Floor segment, which saw an average increase of 23-25% in 2022. This upward trend is expected to persist, as apartment prices in Athens rose by 7.7% year-on-year in Q3 2024. New apartments are even more in demand, with prices jumping by 9.7%. The allure of Athens, with its rich history and cultural attractions, continues to draw people in, further fueling the housing demand.
Living in Athens is not just about finding a home; it's about embracing a lifestyle. The city's cosmopolitan vibe and historical charm make it a magnet for those seeking both modernity and tradition. This unique blend is a key factor in why rents are expected to keep rising.
For potential buyers, understanding the dynamics of Athens' housing market is crucial. The limited housing stock, combined with a growing population, suggests that investing in property here could be a wise decision. As the city continues to evolve, the demand for housing is unlikely to wane.
In summary, Athens is a city on the rise, both in terms of population and housing demand. With limited properties available and a steady influx of new residents, the rental market is set to remain competitive.
Sources: Mamaxo, Macrotrends, Grekodom
5) Property transfers among family members will rise due to changes in inheritance tax laws
Changes in inheritance tax laws can really shake up how families handle their property.
Take Greece, for instance. In 2022, they scrapped the supplementary tax on immovable property and introduced a higher principal tax for properties over EUR 500,000. This move nudged families to transfer property before the new rates kicked in, creating a buzz in the real estate market.
When these tax changes hit the news, families start paying attention. They often rush to legal experts to figure out the best way to minimize their tax liabilities. This surge in consultations is a clear sign that people are looking for ways to keep more of their hard-earned assets.
Government records usually show a spike in property transfers after such tax changes. Families are quick to act, transferring properties among themselves to avoid the higher taxes. It's a smart move to keep the family wealth intact.
Increased activity in property transfers isn't just a fluke. It's a direct response to the tax changes, as families try to navigate the new financial landscape. This trend is often highlighted in expert analyses and media reports, making it a hot topic in the real estate world.
So, if you're thinking about buying property in the country, keep an eye on these tax laws. They can have a big impact on your investment and how you manage it in the long run.
Sources: PWC Tax Summaries, EY Worldwide Estate and Inheritance Tax Guide 2023, Deloitte Greece Highlights 2024
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6) Stricter building rules will emerge in Greece's coastal areas due to erosion and climate change
Greece is grappling with serious coastal erosion and climate change.
In 2023 and 2024, studies revealed that nearly one-third of Greece's coastline is eroding, with some areas losing over 3 meters of land annually. This isn't just a statistic; it's a visible transformation of the landscape. Imagine owning a seaside property and watching the beach shrink year by year. The natural beauty that draws people to these areas is under threat, and it's happening faster than many expected.
Rising sea levels and more frequent extreme weather events, like droughts and floods, are adding to the pressure on Greece's coastal regions. These aren't just future concerns; they're current realities affecting local communities. The Bank of Greece has emphasized the urgent need for adaptation to protect these vulnerable areas. If you're considering buying property here, it's crucial to understand how these changes might impact your investment.
Looking at international examples, stricter building regulations have proven effective in mitigating such impacts. The Netherlands, for instance, has implemented extensive flood protection measures. This sets a precedent for Greece, which is likely to follow suit. The European Union has also issued directives for member states to adapt to climate change, and Greece is expected to align with these recommendations to ensure safety and compliance.
For potential property buyers, this means that stricter building regulations are on the horizon in Greece's seaside communities. These regulations will likely focus on sustainable construction practices and protective measures against erosion and flooding. It's a move towards safeguarding both the environment and property investments.
Understanding these dynamics is crucial for anyone looking to invest in Greek coastal properties. The landscape is changing, and with it, the rules of the game. As Greece adapts to these challenges, future property developments will need to comply with new standards to ensure long-term viability and safety.
Sources: PreventionWeb, Wikipedia, Bank of Greece, Copernicus, Climate Change Post
7) Demand for smaller, accessible homes in Greece will grow as the population ages
Greece is seeing a notable rise in its aging population, with 23.48% of people aged 65 and above by 2023.
As folks get older, their housing needs shift. Many prefer smaller, easier-to-manage homes that don't require much upkeep. Accessibility is key, too, since mobility can become an issue. Think ramps, wide doorways, and walk-in showers—these features are becoming essential in home design.
Retirees are looking for homes that are both accessible and affordable. In 2024, Greece was a top choice for its affordable living and housing options, making it appealing for those seeking smaller, accessible units. However, many of the older homes in Greece might not have these modern features.
Surveys show that retirees prioritize these aspects when choosing a place to live. The current housing stock in Greece often lacks the necessary modern accessibility features that older adults need.
With the aging population, there's a growing demand for housing that caters to these needs. This trend is pushing the market towards more accessible and manageable living spaces for the elderly.
Sources: EUROSTAT, Investment Visa, World Bank Data
8) Demand for homes with dedicated workspaces will grow as home offices become more popular
In 2023 and 2024, Greece has seen a surge in remote work, thanks to the digital nomad visa program.
This program has been a magnet for remote workers, especially those in the IT sector, who often need dedicated workspaces at home. The trend isn't just local; globally, there's been a noticeable uptick in the sales of home office furniture and equipment, signaling a shift towards home-based work environments.
As more people embrace working from home, the demand for properties with dedicated workspaces is expected to grow. A 2023 survey by Owl Labs found that 82% of remote workers prefer to work from home, underscoring the importance of having a suitable workspace.
In Greece, real estate listings are catching on, increasingly highlighting features like home offices, study rooms, and co-working spaces. This shift indicates a clear market trend towards properties that cater to the needs of remote workers.
For those considering buying property in Greece, it's worth noting that homes with these features are becoming more desirable. The popularity of home offices is reshaping the real estate market, making properties with dedicated workspaces a hot commodity.
Sources: Fragomen, Flowlu, Pumble
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.
9) Luxury home prices in Greece will rise as wealthy buyers look for exclusive vacation properties
Luxury property prices in Greece are on the rise, and this trend shows no signs of slowing down.
One big reason is the growing number of wealthy individuals worldwide. As more people build their fortunes, the demand for exclusive vacation homes in Greece increases. This surge in interest is particularly noticeable among those seeking unique and luxurious getaways.
Foreign investment in Greek real estate is another driving force. In 2023, foreign direct investment in real estate jumped by 8% year-over-year, reaching €2.13 billion. This growth is largely thanks to Greece's Golden Visa program, which offers residency permits to non-EU buyers who invest in real estate, making it an attractive option for international investors.
The allure of Greek islands like Mykonos and Santorini can't be overstated. These islands are not just tourist hotspots; they are prime locations for luxury property buyers due to their stunning landscapes and vibrant lifestyle. However, the limited availability of high-end properties in these areas means that prices are likely to keep climbing as demand continues to outpace supply.
Insider knowledge suggests that the exclusivity of these islands adds to their appeal. Buyers are drawn to the unique blend of culture, beauty, and privacy that these locations offer, making them a top choice for those looking to invest in luxury real estate.
As the market continues to evolve, it's clear that Greece remains a top destination for luxury property investment, attracting high-net-worth individuals from around the globe.
Sources: Global Property Guide, Global Citizen Solutions, ETIAS
Our team found this video demonstrating the strength of the luxury property market in Greece through the Hamptons Greece Hotel Residences project, ranked #3 by NASDAQ magazine and featured in Forbes and Fortune.
10) Ioannina will become a real estate hotspot as its tech industry grows
Ioannina is quickly becoming a hotspot for real estate thanks to its thriving tech industry.
In recent years, the city has seen a surge in tech startups, with big players like TeamViewer and P&I setting up R&D centers here. They're tapping into the local talent pool, which is rich in digital skills, making Ioannina a prime location for tech innovation.
Investment in Ioannina's tech scene is booming, with major firms like PwC and Deloitte establishing offices in the area. This wave of investment is not just boosting the economy; it's also creating jobs as more companies expand their operations. The Greek government is sweetening the deal with incentives for tech companies, making Ioannina even more appealing.
The University of Ioannina is a key player, offering advanced computer science programs that ensure a steady stream of skilled professionals. Plus, the Epirus Science and Technology Park provides the infrastructure tech businesses need to thrive, encouraging innovation and collaboration.
All these factors are driving up demand for both commercial and residential properties. Real estate market reports show a clear trend: Ioannina is on the rise as a real estate hub.
Sources: OT, The Luxury Playbook, Greek News Agenda
11) Residential properties near new parks and green spaces will become more attractive
New green spaces and parks in urban areas can make nearby homes much more appealing.
In places like Athens and Thessaloniki, property prices jumped by 9.4% and 7.6% in 2023, thanks to urban renewal projects. These projects often include parks, which breathe new life into neighborhoods and catch the eye of both local and international buyers. Imagine strolling through a lush park right outside your doorstep—it's a game-changer for many.
Take Marvin Gaye Park in Washington, D.C., for instance. Its transformation led to a spike in property values nearby. Why? Because parks do more than just look pretty. They offer a place to unwind, play, and connect with neighbors, making them a magnet for homebuyers.
Living near green spaces isn't just about aesthetics; it's about health, too. People living close to parks often experience lower stress levels and better mental health. As more folks focus on well-being, homes near parks become hot commodities. Plus, parks can make neighborhoods safer and more engaged, adding to their charm.
In urban areas, parks are more than just patches of green. They can transform a neighborhood's vibe, making it more vibrant and inviting. This is why properties near parks are often in high demand. It's not just about the view; it's about the lifestyle that comes with it.
So, if you're thinking about buying a home, consider one near a park. The benefits go beyond just a nice view. You'll be investing in a community that values health, safety, and connection. And who wouldn't want that?
Sources: NRPA, The Luxury Playbook, BREC
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12) Investment in Thessaloniki's waterfront will grow due to urban redevelopment plans
Thessaloniki's waterfront properties are set to become a hot spot for significant investment.
Investors from the United States, Israel, Germany, and the United Kingdom are showing strong interest in Thessaloniki's real estate market. This trend was especially noticeable in 2023, according to the Thessaloniki Hotels Association. The city's charm, combined with its strategic location, makes it a magnet for those looking to invest in Greece.
Property prices in Thessaloniki's waterfront areas have seen a dramatic surge. From Q3 2019 to Q3 2023, the average housing price jumped by 83.5%, outpacing even central Athens. This increase signals a growing demand and the potential for high returns, making it an attractive option for investors.
The Greek government is rolling out ambitious urban redevelopment plans to make Thessaloniki a top tourist destination. These plans include major infrastructure projects, like the completion of 13 metro stations by the end of 2024, which will boost connectivity and accessibility in the waterfront areas.
Thessaloniki's transformation is not just about infrastructure; it's about creating a vibrant urban environment. The city's redevelopment aims to enhance its appeal, drawing more tourists and investors alike. This makes the waterfront properties even more enticing for those looking to capitalize on the city's growth.
With these developments, Thessaloniki is poised to become a key player in the real estate market, offering a unique blend of culture, history, and modernity. The city's waterfront properties are at the heart of this transformation, promising a bright future for investors.
Sources: GTP News, Portico and Bridge, GTP News
13) Blockchain will make Greek real estate transactions smoother and more transparent
By 2025, blockchain technology is set to transform the Greek property market.
In recent years, the Greek government has been pushing to modernize property records with initiatives like the "Hellenic Distributed Ledger Technology Infrastructure – ELEDGER." This move aligns with the European Blockchain Partnership, aiming to make property transactions more transparent. With blockchain, every transaction is recorded in a tamper-proof digital ledger, reducing fraud and cutting out middlemen. This means buyers and sellers can trust the process more, making deals smoother and more secure.
Blockchain also automates many manual steps in property transactions through smart contracts. These contracts execute agreements automatically when certain conditions are met, saving time and reducing errors. Greece has been proactive in creating legal frameworks to support this technology. For example, Law 5113/2024 provides a solid foundation for blockchain's growth in real estate, showing the country's commitment to innovation.
Partnerships between Greek real estate companies and blockchain firms are crucial. They work together to implement and spread blockchain technology across the country, driving change and adoption. International examples, like blockchain-based land registry systems in Sweden, Dubai, and Ghana, highlight the potential for cost savings and better service quality. These examples serve as a blueprint for Greece, demonstrating how blockchain can enhance transparency and streamline transactions.
In Greece, the adoption of blockchain in real estate is not just about technology; it's about creating a more efficient and trustworthy market. The legal backing and partnerships are paving the way for a future where property transactions are faster, safer, and more transparent. As blockchain continues to evolve, its impact on the Greek real estate market will likely grow, offering new opportunities for buyers and sellers alike.
Sources: Custom Market Insights, Cyprus Review, Proprli, Legal 500
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.