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Yes, the analysis of the Greek Islands' property market is included in our pack
Thinking about buying a 3-bedroom villa in Santorini? It’s a stunning location, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other islands like Mykonos or Crete where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Greek Islands Property Pack.
Will property prices increase in the Greek Islands in 2025?
Yes, property prices in the Greek Islands are expected to rise in 2025, driven by a combination of high demand and limited supply of housing.
Backed by our fresh, in-depth market analysis, we’re confident that the Greek Islands remain one of the most attractive destinations globally for both domestic and international investors.
Sure, there are some economic challenges like inflation and rising interest rates, but the main drivers behind the Greek Islands' price growth remain strong.
Demand, especially in popular tourist areas, continues to outstrip supply, making any major price dips unlikely. And let’s not forget—the Greek Islands' status as a prime vacation and lifestyle destination keeps drawing in buyers from around the world.
Signals pointing to a property price increase in the Greek Islands
Here are some factors suggesting prices could increase:
The ongoing popularity of the Greek Islands as a top tourist destination is expected to continue in 2025, driving demand for vacation homes and rental properties, which in turn pushes up property prices.
Limited availability of land for new developments in many of the islands ensures that supply remains constrained, contributing to upward pressure on property prices.
The Greek government is expected to continue offering incentives for foreign investment in real estate, such as the Golden Visa program, which attracts international buyers and supports price growth.
Improvements in infrastructure, including transportation and utilities, are planned for several islands, enhancing their appeal and potentially increasing property values.
The trend of remote working is encouraging more people to consider relocating to scenic and lifestyle-rich locations like the Greek Islands, boosting demand for residential properties.
The Greek economy is projected to stabilize and grow, improving consumer confidence and increasing the purchasing power of both domestic and international buyers.
Cultural and historical significance, along with natural beauty, continue to make the Greek Islands a desirable location for property investment, sustaining long-term demand.
Signals pointing to a property price decrease in the Greek Islands
Here are some factors suggesting prices could fall:
Economic uncertainties, including potential fluctuations in the Eurozone, could impact investor confidence and reduce demand for properties in the Greek Islands.
Rising interest rates may make financing more expensive, potentially deterring some buyers and slowing down the property market.
Environmental concerns, such as the impact of climate change on coastal areas, could affect the desirability and value of properties in certain locations within the Greek Islands.
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If property prices go up in the Greek Islands, how much would they increase by?
If real estate prices in the Greek Islands were to rise in 2025, the increase would likely be between 3% to 7% of their 2024 values.
Typically, real estate in popular tourist destinations like the Greek Islands appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as island popularity, season, and property type.
It means that, if you spot a charming 2-bedroom villa in Santorini for 500,000 euros today, don't be surprised if it's priced between 515,000 and 535,000 euros this time next year.
To give you a better understanding, here is a table that shows 7 types of Greek Island real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (€) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Traditional Cycladic House (60 sqm / 646 sqft) | €400,000 | €412,000 | €420,000 | €428,000 |
| Modern Villa (100 sqm / 1,076 sqft) | €1,000,000 | €1,030,000 | €1,050,000 | €1,070,000 |
| Luxury Seafront Villa (150 sqm / 1,615 sqft) | €2,500,000 | €2,575,000 | €2,625,000 | €2,675,000 |
| Studio Apartment (30 sqm / 323 sqft) | €150,000 | €154,500 | €157,500 | €160,500 |
| Island Cottage (80 sqm / 861 sqft) | €600,000 | €618,000 | €630,000 | €642,000 |
| Townhouse (120 sqm / 1,292 sqft) | €800,000 | €824,000 | €840,000 | €856,000 |
| Investment Property (50 sqm / 538 sqft) | €300,000 | €309,000 | €315,000 | €321,000 |
Everything you need to know is included in our Property Pack for the Greek Islands
If real estate prices go up in the Greek Islands, which areas are likely to see the biggest increases?
Today, people who want to move to the Greek Islands seek the idyllic beauty, but they also desire modern amenities and vibrant local culture, which Mykonos Town delivers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant areas, and Fira in Santorini has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Greek Islands market.
| Area | Level of Increase | Why |
|---|---|---|
| Mykonos Town | High | Recent development of luxury villas and its increasing appeal to international tourists as travel normalizes post-pandemic, driving demand. |
| Oia, Santorini | High | Expected rise due to limited housing stock, upcoming renovations to traditional cave houses, and growing demand for prime properties with caldera views. |
| Fira, Santorini | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Rhodes Old Town | Medium | The shift towards hybrid workspaces is driving demand for residential properties near historic districts, combined with new mixed-use developments. |
| Chania, Crete | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Naxos Town | Medium | Investment in local infrastructure, such as the extension of ferry services and renovation of historic areas, is boosting long-term value. |
| Parikia, Paros | Medium-High | With new cultural and commercial spaces being developed, this trendy area is seeing increased demand from both residents and investors. |
| Lindos, Rhodes | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Corfu Town | Medium-High | Its proximity to mainland Greece, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Kefalonia | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Hydra | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Delos | High | Upcoming restoration of archaeological sites and high-profile cultural projects are driving a renewed focus on this historic location. |
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in the Greek Islands?
In 2025, Greek Islands real estate trends focus on luxury villas with sea views, eco-friendly homes, properties with private beach access, and traditional stone houses—all driving higher demand and prices. Here is a summary.
- Luxury Villas with Sea Views:
These properties are highly sought after by international buyers and investors looking for vacation homes. The breathtaking views and premium amenities make them a top choice in 2025.
- Eco-Friendly Homes:
With a growing emphasis on sustainability, homes equipped with solar panels and energy-efficient systems are becoming increasingly popular. They appeal to environmentally conscious buyers and are expected to see significant value appreciation.
- Properties with Private Beach Access:
Post-pandemic, the desire for private and exclusive outdoor spaces has surged. Properties offering direct access to beaches are in high demand, providing a unique selling point that enhances their value.
- Traditional Stone Houses:
The charm and authenticity of traditional Greek architecture attract buyers looking for a cultural experience. These properties, often located in picturesque villages, are gaining popularity and driving up prices.
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