Authored by the expert who managed and guided the team behind the Greece Property Pack
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What will happen in the Greek Islands’ real estate market? Will prices rise or fall? Are Santorini and Mykonos still prime locations for foreign investors? How is Greece’s government influencing real estate policies and taxes in 2025?
We’re frequently asked these questions because we’re deeply engaged in this market. Through our collaborations with local real estate agents, property developers, and international buyers, we’ve gathered firsthand insights.
That’s why we crafted this article: to deliver clear answers, insightful analysis, and a comprehensive perspective on market predictions and forecasts.
Our aim is straightforward: 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) More foreign investors will enter Greece’s market as the Golden Visa program becomes more popular
Foreign investors are flocking to Greece, thanks to the Golden Visa program.
In 2023, foreign investment in Greek real estate hit €3 billion, marking a record high. This surge is largely fueled by the Golden Visa, which offers residency in exchange for real estate investments. The program is a magnet for those looking to enjoy the Mediterranean lifestyle while securing a European foothold.
Applications for the Golden Visa program have skyrocketed, with a 100% increase in 2023 compared to the previous year. This shows a growing interest in Greek residency through real estate. Popular spots like Mykonos and Santorini are seeing a boom, with foreign buyers snapping up properties and driving the market.
The economic impact is substantial, with the Golden Visa program channeling €5.54 billion into the market over the past decade. This influx has not only boosted the real estate sector but also increased government revenues through taxes on these transactions.
For those considering a move, the Greek Islands offer more than just stunning views. They provide a chance to be part of a thriving real estate market, where foreign investment is reshaping the landscape. The Golden Visa is a key player in this transformation, making Greece an attractive option for international buyers.
With the Golden Visa's popularity, the number of foreign investors is expected to grow, further enhancing Greece's appeal as a real estate hotspot. The program's success is evident in the bustling property markets of the islands, where international interest continues to rise.
Sources: Grekodom, ETIAS, Global Property Guide
2) More foreign buyers will seek retirement homes in the Greek Islands
Foreign buyers are eyeing the Greek Islands for retirement homes, and it's easy to see why.
In recent years, foreign property investments in Greece have surged, with a notable 61% increase in the first half of 2023 alone. This momentum carried into 2024, with investments hitting an all-time high of €3 billion. Such numbers clearly show international buyers' growing confidence in the Greek real estate market.
The Greek Islands are particularly appealing to retirees because of favorable exchange rates and lower property prices compared to other European destinations. This means retirees can make their money go further, enjoying a comfortable lifestyle without breaking the bank. The Greek government's Golden Visa program sweetens the deal, offering residency to those who invest a certain amount, thus drawing even more foreign interest.
Improved infrastructure and healthcare services on the islands are also a big draw. With upgraded health centers and new telemedicine units, retirees can now access quality healthcare more easily. This aligns perfectly with the global trend of retirees seeking warmer climates, making the Mediterranean allure of the Greek Islands even more irresistible.
Imagine waking up to the stunning views and rich culture of the Greek Islands, all while enjoying a relaxed lifestyle. It's no wonder that the combination of natural beauty and cultural richness is attracting retirees from around the world.
With these factors in play, it's clear that the Greek Islands are becoming a top choice for those looking to retire in style and comfort.
Sources: Greek Exclusive Properties, Immigrant Invest, Columbia Schools EU, The Luxury Playbook
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Greece. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
3) Rental yields in the Greek Islands will rise as tourism bounces back
Rental yields in the Greek Islands are climbing, and this trend shows no signs of slowing down.
In 2023, Greece welcomed 32.7 million tourists, a remarkable 17.6% jump from the previous year, even surpassing pre-pandemic numbers. This influx has been a boon for the Greek Islands, which are top picks for travelers seeking sun and sea.
Islands like Mykonos, Santorini, and Crete are seeing rental yields often exceeding 10%, thanks to high tourist demand and a limited supply of quality accommodations. This makes them hot spots for investors eyeing short-term rental opportunities.
The Greek government has been actively promoting the country as a safe and attractive destination, which has helped draw more visitors to the islands. This effort is paying off, as Greece is performing exceptionally well in the global tourism scene, outshining many other destinations.
Increased airline routes and capacity have also played a part, with international air arrivals at Athens and Thessaloniki airports growing significantly in 2023. This makes it easier for tourists to reach the islands, further boosting their appeal.
With these factors in play, it's no wonder that occupancy rates in the Greek Islands are on the rise, driving rental yields even higher. Investors are taking note, seeing the potential for lucrative returns in this thriving market.
Sources: GTP Headlines, GTP Headlines, ETIAS
4) More investors will be drawn to Lefkada as its reputation for sustainable tourism increases
In recent years, Lefkada has become a beacon for sustainable tourism, drawing the attention of investors worldwide. One of the key reasons is the island's commitment to eco-friendly infrastructure, as seen in projects like Townhouse Lefkada, which incorporates natural ventilation, solar panels, and other green technologies. This focus on sustainability is a significant attraction for investors who prioritize environmental responsibility.
Moreover, the surge in Greece's tourism revenue in 2024, reaching €22 billion, underscores a broader shift towards sustainable tourism. Lefkada, being part of this trend, stands to benefit from the growing interest in eco-friendly travel destinations. This economic growth potential is a magnet for investors looking to capitalize on the sustainable tourism boom.
Additionally, initiatives like the ISLANDER Project, which aims to decarbonize islands, have heightened media attention on Lefkada's sustainable efforts. This increased visibility in travel guides and blogs further enhances the island's reputation as a sustainable destination, making it even more appealing to investors. The combination of successful case studies, such as the Townhouse Lefkada and the ISLANDER Project, provides a proven model for future investments, encouraging more investors to consider Lefkada as a prime location for sustainable tourism projects.
Sources: Townhouse Lefkada, Travel and Tour World, ISLANDER Project
5) Rental yields on some islands will drop because of too many short-term rentals
In 2023 and 2024, Greece saw a huge jump in short-term rental listings, with nearly 1 million beds available by 2024.
This boom was fueled by strong tourist flows, especially in July, leading to a 13% growth in vacation rental supply. Many travelers booked within 30 days of their trip, hinting at a potential market oversupply.
Despite the tourist influx, occupancy rates didn't keep up. In Athens and Attica, occupancy rates dropped by 11% and 7%, respectively, showing that demand wasn't meeting the increased supply.
Reports highlight that popular islands are experiencing rental market saturation, causing longer vacancy periods for property owners. This oversupply is evident in the 9.8% drop in average daily rates for short-term rentals in July 2024.
These trends suggest that some islands will likely see a decline in rental yields due to the oversupply of short-term rentals.
Sources: To Vima, Short Term Rentalz
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6) Property prices will drop in areas vulnerable to climate change impacts
Properties in areas prone to climate change impacts, like the Greek Islands, are facing a decline in prices due to several factors. One major reason is the rising sea levels, which have already started affecting coastal properties. For example, the island of Delos is experiencing structural damage, posing risks to nearby properties.
Another factor is the increased frequency of extreme weather events, such as heatwaves, droughts, and fires. In Greece, the number of days with a high risk of fire is projected to increase significantly by 2050, which could lead to property damage and decreased value. Additionally, insurance companies are raising premiums or refusing coverage in high-risk areas, making it harder for property owners to secure insurance and thus reducing property values.
Scientific studies also predict future climate impacts, with a study showing that over a third of historical sites along the Eastern Mediterranean coasts are at high risk of being submerged by the end of the century. This indicates a potential decline in property values in these areas. Real estate market analyses highlight a shift in buyer preferences towards climate resilience, leading to decreased demand and lower prices for properties in high-risk areas.
Sources: Euronews, diaNEOsis, Copernicus
7) Property prices in the Greek Islands will continue to rise due to strong international interest
The Greek Islands have become a hotspot for international property buyers, and this trend is expected to continue. One of the main reasons is the success of the Greek Golden Visa program, which in 2023 alone attracted €1.32 billion from foreign buyers. This program has been a significant driver of foreign investment in the region.
Additionally, the demand for vacation homes and luxury properties in the Greek Islands is exceptionally high. This demand is fueled by the increasing number of tourists, with over 30 million visitors in 2023, and the rise of remote work, which allows more people to live in desirable locations like the Greek Islands. The limited supply of properties compared to this growing demand naturally pushes prices upward.
Infrastructure improvements, such as airport renovations and enhanced transport links, have made the islands more accessible, further boosting their appeal. The Greek government has also introduced tax incentives to attract foreign investors, creating a favorable environment for real estate investment. These factors, combined with consistent historical property price increases, suggest a strong upward trend in property values.
Sources: The Luxury Playbook, Immigrant Invest, GTP Headlines, Global Property Guide
8) More Asian buyers will seek vacation homes in the Greek Islands
The Greek Islands are becoming increasingly popular among foreign buyers from Asia seeking vacation homes. One of the main reasons is the success of Greece's Golden Visa program, which offers residency permits to non-EU investors who purchase property worth over €250,000. By 2023, this program had issued over 10,000 visas, bringing in more than €2.5 billion in foreign direct investment to the Greek real estate sector.
Additionally, there has been a significant rise in foreign direct investment for real estate purchases in Greece. In 2023, this investment rose by 8% year-over-year to €2.13 billion, following substantial increases in the previous years. This trend indicates a growing interest in Greek properties from international buyers, including those from Asia.
Another factor contributing to this trend is the growing disposable income among the Asian middle and upper classes. Over the past decade, this demographic has seen a significant increase in disposable income, which is likely to drive more people to invest in vacation homes abroad, including in the Greek Islands.
Sources: NTL Trust, Legal 500, Global Property Guide
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.
9) Stricter regulations will reduce profits for Airbnb-style rentals
In Greece, complaints about noise and overcrowding from short-term rentals have been on the rise.
These rentals are putting a strain on local infrastructure, especially in tourist hotspots. The Greek government is taking action, noting that short-term rentals are affecting housing availability and affordability. Starting January 1, 2025, Athens will see a ban on new licenses for these rentals to combat overtourism and housing shortages.
Greece isn't alone in this. Across Europe, countries are tightening the reins on short-term rentals. In Italy, for example, rentals are limited to 120 days a year, while the Netherlands requires permits and caps rentals at 30 nights annually. This is part of a larger trend of stricter regulations sweeping the continent.
Research shows that the boom in short-term rentals is linked to rising property prices, making it harder for locals to afford homes. This has sparked more opposition from residents and pushed governments to consider even tougher rules.
For those eyeing property investments, it's crucial to understand that regulations on short-term rentals are tightening, which could impact the profitability of Airbnb-style properties. The landscape is changing, and staying informed is key.
As these regulations evolve, potential buyers should keep an eye on how these changes might affect their investment plans. Understanding local laws and trends will be essential for making informed decisions in this shifting market.
Sources: Travel Market Report, Fuse Chronicles, Enso Connect
10) Interest in eco-friendly properties on the islands will grow among foreign buyers
There's a growing buzz around buying eco-friendly homes, especially on the Greek Islands.
In recent years, the demand for sustainable housing has surged, driven by a global push for greener living. People are not just looking for affordable homes; they want ones that are kind to the planet too. This shift is particularly noticeable in places like the Greek Islands, where eco-friendly property developments are catching the eye of international buyers.
By 2023 and 2024, awareness about climate change had skyrocketed, making sustainable living a priority for many. Investors are now keen on properties that reflect these values. The Greek Islands have become a prime spot for such investments, with an increasing number of eco-friendly projects drawing interest from both local and foreign buyers.
The Greek government is playing a big role in this trend by offering incentives like subsidies for energy-efficient upgrades and reduced property taxes for green buildings. These perks make eco-friendly homes even more attractive to international investors. Foreign buyers are particularly interested in these properties, seeing them as a smart investment.
Successful eco-friendly developments on the islands have proven to be a hit with international investors. These projects not only meet the demand for sustainable living but also offer a unique appeal that traditional properties might lack. Investors are increasingly drawn to these innovative solutions, recognizing their potential for long-term value.
As the world continues to prioritize sustainability, the Greek Islands stand out as a top destination for eco-conscious property buyers. With government support and a growing market for green homes, the islands are set to attract even more foreign interest in the coming years.
Sources: The Luxury Playbook, Kogod American University, Iland Co
11) Housing demand in the Greek Islands will rise as young professionals move for remote work opportunities
In recent years, the trend of remote work has seen a significant rise globally. For instance, in the U.S., the number of remote workers tripled from 2014 to 2023, highlighting a growing acceptance and adoption of remote work practices.
On the Greek islands, the availability of high-speed internet has improved dramatically. By the summer of 2023, at least ten islands had internet speeds of up to 1 Gbps, thanks to extensive upgrades in fiber-optic networks. This infrastructure development makes the islands more attractive to remote workers who rely on stable internet connections.
Additionally, the Greek government has introduced incentives like the digital nomad visa and a 50% tax break for the first seven years for digital nomads. These initiatives aim to attract remote workers, offering them a chance to enjoy the islands' natural beauty while maintaining their professional commitments.
Surveys have shown that young professionals are increasingly seeking a better work-life balance. A study found that productivity among digital nomads working from Naxos' beach cafes increased by 23% compared to their home office environments, indicating the appeal of a more relaxed and inspiring work setting.
Moreover, the cost of living on the Greek islands is significantly lower than in most European urban centers, making them an attractive option for young professionals. This affordability, combined with the islands' appeal, is likely to impact housing demand as more young professionals consider relocating.
Sources: Mighty Travels, Governing, Greek Reporter, Fragomen
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12) Co-living spaces will become more popular with younger buyers in the Greek Islands
The trend of co-living spaces is gaining traction among younger buyers in the Greek Islands for several reasons. First, the ongoing housing crisis in Greece, particularly in areas like Attica, has made affordable housing options more appealing. Co-living spaces offer a cost-effective solution by sharing amenities and expenses, which is attractive to those looking for more affordable living arrangements.
Additionally, the rise of remote work and digital nomadism has brought a new wave of interest to the Greek Islands. With over 10,000 applications for the Digital Nomad Visa program in its first year, islands such as Crete, Paros, and Lesvos have become popular destinations for remote workers. These islands provide reliable internet and coworking spaces, making them ideal for digital nomads who value flexibility and community.
Globally, the co-living market has been expanding rapidly, with its market size reaching $1.997 billion in 2023 and projected to grow significantly by 2030. This global trend towards shared living spaces is likely to influence the Greek Islands as well. Younger generations, who prioritize convenience and community-oriented living, find co-living spaces appealing due to their flexibility and lack of long-term commitments.
Sources: To Vima, Mighty Travels, Precision Reports
13) Luxury property prices in the Greek Islands will rise significantly as high-net-worth individuals invest
The luxury property market in the Greek Islands is booming, with prices set to rise significantly thanks to high-net-worth individuals.
These affluent buyers are flocking to iconic spots like Mykonos and Santorini, where demand for luxury homes is skyrocketing. In the first half of 2024, the luxury real estate market in Greece saw a notable uptick in purchase agreements, reflecting this growing interest.
What's driving this trend? The number of ultra-high-net-worth individuals (UHNWIs) is on the rise, with a 7.6% increase in 2023. These individuals see real estate as a safe bet, especially in prime locations like the Greek Islands, which are known for their stunning views and exclusive lifestyle.
But it's not just about demand. The supply of luxury properties in these sought-after destinations is limited, which naturally pushes prices even higher. The Greek Islands are becoming increasingly popular as luxury travel spots, and government incentives like the Golden Visa program add to their allure for wealthy buyers.
Media reports and high-profile property purchases are also shining a spotlight on the Greek Islands, boosting their appeal among affluent investors. This buzz is making these islands a hot ticket for those looking to invest in luxury real estate.
For those considering a purchase, it's worth noting that the luxury segment in the Greek Islands is not just a trend; it's a growing market driven by a mix of demand, limited supply, and strategic incentives. Expect prices to continue climbing as more high-net-worth individuals look to invest in these idyllic locations.
Sources: Limited Collection Estate, PR Newswire, Sotheby's Realty
14) Demand for healthcare facilities and senior-friendly housing will grow as more retirees move in
The influx of retirees to the Greek Islands is significantly impacting the demand for healthcare facilities and senior-friendly housing. In 2023 and 2024, Greece saw a notable increase in its foreign-born population, including many retirees, which has contributed to a rising old-age-dependency ratio. This means there are more elderly people compared to the working-age population, indicating a growing need for services catering to older adults.
Greece's high ranking in the Annual Global Retirement Index 2024 highlights its appeal as a retirement destination, particularly the Greek Islands, known for their natural beauty and peaceful lifestyle. The popularity of the Golden Visa and Retirement Visa programs has further attracted foreign retirees, who often prioritize access to good healthcare and suitable housing. Surveys have shown that retirees value these aspects highly, and Greece's special tax regime for retirees underscores the country's efforts to meet these needs.
The demand for senior housing has surged, with a 40% growth in absorption rates in early 2024, reflecting the rapid recovery and increased occupancy in this sector. This trend is not unique to Greece; other popular retirement destinations like Spain and Portugal have experienced similar increases in demand for healthcare and senior-friendly housing, driven by their growing retiree populations.
Sources: Immigrant Invest, Trading Economics, To Vima, NIC MAP Vision, Investment Visa
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.
15) Long-term rental demand will rise, increasing yields in less touristy areas
The demand for long-term rentals in less touristy areas of the Greek Islands is booming.
Remote workers, especially digital nomads, are flocking to these serene spots, seeking stable, long-term accommodations. In recent years, Greece has seen a surge in applications for the Digital Nomad Visa program, showing a strong interest in settling down for longer periods. This shift is not just about work; it's about finding a place that feels like home.
People are increasingly looking for stability and community, and less touristy areas offer just that. The Greek government is sweetening the deal by offering incentives for property renovation and long-term leasing, making these areas even more appealing for investment. It's a win-win for both renters and property owners.
In places like Mytilene and Ikaria, property prices are climbing, signaling a growing demand. These areas are becoming hotspots for digital nomads who are drawn to the lower cost of living and peaceful surroundings. The media often highlights these benefits, making them even more attractive to those looking for a long-term stay.
Living in less crowded areas means enjoying a more tranquil environment, which is a big draw for long-term renters. The combination of lower living costs and a serene lifestyle is hard to resist. As more people discover these hidden gems, the demand for long-term rentals will only continue to rise.
With the Greek government's support and the increasing popularity of remote work, yields in these less touristy areas are set to improve. This trend is reshaping the real estate landscape, offering new opportunities for both investors and renters.
Sources: Mighty Travels, Girl Gone Abroad, To Vima, The Luxury Playbook
16) Property prices on smaller islands will drop due to limited accessibility
In recent years, some smaller islands have faced challenges due to limited accessibility, which can impact property prices. For instance, limited ferry and flight services make it difficult for people with reduced mobility to travel to these islands. This can deter potential buyers, especially those with disabilities, from investing in properties there.
Additionally, increasing transportation costs have made these islands less accessible for some travelers. Overcrowding in popular destinations like Mykonos has led to higher transportation costs, which can discourage potential property buyers. For example, the NCL cruise couldn't dock in Mykonos due to overcrowding, and the alternative tender service wasn't suitable for travelers using electric wheelchairs.
Moreover, declining tourist numbers due to overtourism in places like Mykonos and Santorini can also affect property prices. Overcrowding makes it challenging for disabled travelers to navigate these areas, leading to a decrease in tourist numbers and impacting the local real estate market.
Sources: Tovima, Ferryhopper, Care Under Sun
17) Luxury property rental yields will increase as affluent tourists show more interest
Rental yields in luxury properties are expected to rise as they become more popular among affluent tourists. In 2023, property prices in tourist hotspots like Mykonos and Santorini surged by up to 20%, indicating a growing demand for luxury properties. This typically translates to higher rental yields.
Greece welcomed over 33 million visitors in 2023, with a significant portion being affluent tourists. The country's tourism revenue reached €22 billion in 2024, a record high. This influx of tourists, particularly those seeking luxury experiences, drives up demand for high-end accommodations.
The rise of short-term rental platforms like Airbnb has created a new paradigm in the Greek real estate market. Investors are increasingly purchasing properties to turn them into short-term rentals, attracted by the potential for high returns during the tourist season. This trend is particularly pronounced in prime locations like Mykonos and Santorini.
Sources: NTL Trust, Travel and Tour World
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.