Authored by the expert who managed and guided the team behind the Greece Property Pack
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What is happening in the Greek Islands’ real estate market? Are prices soaring or stabilizing? Is Mykonos still the go-to destination for international buyers? How are local regulations shaping property investments in 2025?
These are the questions we hear daily from investors, homeowners, and real estate enthusiasts, from Santorini to Crete and beyond. You might be curious about these trends too.
We understand this because we engage with local experts and individuals like you, exploring the Greek Islands' real estate landscape every day. That’s why we crafted this article: to deliver clear insights, thoughtful analysis, and a comprehensive view of market trends and dynamics.
Our mission is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to reach out with your thoughts, and we’ll strive to enhance this content for you.
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1) Asian investors will explore opportunities in the Greek Islands, drawn by the Golden Visa program
Asian investors are increasingly exploring opportunities in the Greek Islands, largely due to the appeal of the Golden Visa program. This program offers a straightforward path to European residency, which is particularly attractive to high-net-worth individuals from Asia seeking enhanced global mobility and tax optimization benefits. The trend of Asian investments in European real estate has been on the rise, driven by the desire for diversified portfolios and stable assets, and this is expected to continue in 2025 and beyond.
In 2024, Chinese nationals accounted for a significant 64.4% of all pending investor applications for the Greece Golden Visa program. This surge in interest highlights the program's attractiveness to Asian investors, particularly due to its affordability and straightforward investment process. Additionally, Chinese investors have been actively scanning the Greek real estate market for opportunities, focusing on holiday homes and tourism-related properties, which not only secure residency but also offer potential for rental income and long-term appreciation.
The Greek Islands, such as Crete, have seen a significant increase in property values driven by the booming tourism sector, making them an attractive destination for investors. Media reports have highlighted this growth, further drawing attention to the investment potential in these regions. Moreover, the Golden Visa program has contributed significantly to Greece's economy, with foreign investments reaching a record €3 billion in 2023, positively impacting local economies, particularly in regions like Attica.
Sources: Investment Visa, Schengen News, IFC Review, Golden Visas
2) The local population will decline slightly as younger people move to cities for better job prospects
The local population in the Greek Islands is expected to decrease slightly as younger generations move to urban areas for better job opportunities.
In recent years, Greece's fertility rate has been among the lowest in Europe, with only 1.265 births per woman, far below the 2.5 needed for population growth. This is especially concerning for the Greek Islands, where young people are already scarce.
Back in 2021, census data revealed a 3.1% drop in the overall population over ten years, with rural areas like the Greek Islands feeling the pinch more than others. The economic crisis saw about half a million Greeks, particularly the young and educated, leaving the country, which has further impacted the islands.
Many young people in the Greek Islands express a strong desire to move to urban areas, seeking better job prospects. This is part of a broader trend where young and educated Greeks find it tough to build stable careers and families on the islands.
The Greek Islands struggle to offer sufficient job opportunities, especially for the youth. This is evident in the high unemployment rates in rural areas compared to cities, making urban migration an attractive option for many.
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) Property prices in the Ionian Islands will rise moderately with new flight routes improving accessibility
The Ionian Islands are set to experience a moderate price increase as they become more accessible with new flight routes.
Hellenic Seaplanes is launching 30 new waterfront terminals, boosting connectivity to islands like Corfu and Paxos by early 2025. This means shorter travel times and a more appealing destination for tourists.
In 2023, Corfu welcomed over 1.8 million air arrivals, surpassing pre-COVID numbers. This surge in tourism signals a growing interest, which often leads to higher demand for accommodations and services, pushing prices up.
Corfu Airport is getting a facelift with a new terminal and expanded facilities, enhancing the travel experience and making the island even more attractive.
The real estate market in the Ionian Islands is heating up. Improved accessibility and the region's rising popularity are driving demand for properties. Real estate agents report more inquiries and sales, hinting at a rise in property prices.
Foreign investors are eyeing the Ionian Islands, making the region more appealing to international buyers. This influx often leads to higher property prices as demand outpaces supply.
Sources: Statista, Mighty Travels, Enimerosi
4) More diverse communities from international residents will influence local real estate preferences
The Greek Islands are seeing a surge of international residents, thanks to the Golden Visa scheme.
By 2024, this program has attracted foreign investors, bringing in over €2.9 billion and encouraging a diverse mix of people to buy properties in Greece. As of December 2023, the foreign-born population in Greece was over 1.1 million, showing a strong international presence.
Investors from China, Russia, the Middle East, Israel, Britain, and the United States are particularly active. For instance, Israeli investors saw a 70% increase in permits, while British and American investors experienced 51% and 47% increases, respectively.
This influx is reshaping the cultural scene on the islands. Events like the Syros International Film Festival and the International Classical Music Festival of Cyclades are drawing artists and audiences globally, creating a vibrant multicultural environment.
There's also a growing demand for international schools and services, catering to the educational needs of expatriate families. This trend is making the islands more appealing to those seeking a cosmopolitan lifestyle.
Sources: Trading Economics, The Luxury Playbook, Andria Mitsakos PR
5) Santorini's rental yields will rise as it remains a popular tourist destination
Santorini is a hot spot for tourists, drawing in millions each year.
With 3.4 million visitors in 2023, the island's popularity is only growing, and this influx is pushing up rental yields. Imagine owning a property where 78% of short-term rentals are occupied most of the year. That's a lot of potential income for property owners.
Now, let's talk money. The average daily rate for accommodations is €221. This isn't just pocket change; it's a significant amount that, when combined with high occupancy, boosts rental yields.
For those considering buying property here, these numbers are promising. The demand for places to stay is high, and with tourists flocking in, property owners are seeing their investments pay off.
Owning a rental property in Santorini means tapping into a lucrative market. The island's charm and popularity ensure that your property won't sit empty for long.
Sources: Schengen News, Airbtics
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6) Property prices in the Cyclades will rise as they gain popularity for remote work setups
In recent years, properties in the Cyclades have become increasingly popular for remote work setups, leading to a rise in property prices. This trend is largely driven by the growing demand for remote work-friendly properties, as seen in the surge of holiday home prices on the Cyclades islands, which reached a ten-year high with an average growth rate of 3.4% over the past five years.
Additionally, the Greek government's investment in upgrading the fiber-optic network across several islands, including Santorini, has significantly improved internet infrastructure. This upgrade, costing €40 million, provides internet speeds of up to 1 Gbps, making the islands more attractive to digital nomads and location-independent professionals.
The introduction of the Greece Digital Nomad Visa further supports this trend by allowing remote workers to live in the country for up to two years. This initiative, along with the growing number of co-working spaces and remote work communities, highlights the Cyclades as an ideal destination for remote work setups.
Sources: Mighty Travels, Greek Reporter, Citizen Remote
7) Virtual reality tours will become more common, enabling international buyers to view properties remotely
Virtual reality tours have become increasingly common, especially for international buyers looking to view properties remotely. This trend has been driven by the rapid growth of the virtual tourism market, which was projected to reach $12.38 billion in 2024, up from $10.52 billion in 2023. Real estate companies have been quick to adopt VR and AR technologies, offering immersive property tours that provide detailed and interactive views of luxury properties.
Advancements in VR technology have made it more accessible and affordable, allowing more real estate agencies to implement virtual tours. Technologies like AI-powered 3D virtual tours have been developed to offer cost-effective and rapid solutions. This has led to a growing number of real estate agencies, such as Vivestia in Greece, adopting virtual tours to showcase properties.
The strong demand from foreign home buyers has also played a significant role. In the first half of 2023, foreign buyers purchased real estate worth €1.1 billion in Greece, representing a significant portion of all real estate purchases. Virtual tours effectively cater to this interest, providing a convenient and safe way for international buyers to explore properties.
Sources: Vivestia, Greek Exclusive Properties, Globe Newswire
8) Stricter short-term rental regulations will affect the profitability of Airbnb-style investments
Local governments are cracking down on short-term rentals, especially in tourist hotspots like the Greek Islands.
In Athens, a one-year ban on new short-term rental registrations started in January 2025, focusing on high-demand areas to tackle housing shortages and overtourism. Greece is also planning to enforce stricter rules, such as property size, safety measures, and insurance requirements, to regulate these rentals.
These changes are a response to local complaints about noise, overcrowding, and rising rents. The boom in short-term rentals has surpassed traditional hotel accommodations, worsening housing shortages and affecting community life. This isn't just a local issue; cities like Barcelona and Amsterdam are also implementing similar regulations.
In these cities, the surge in short-term rentals has led to increased tensions between tourists and residents, prompting authorities to act. The goal is to balance tourism with the needs of local communities, ensuring that residents aren't priced out of their neighborhoods.
For potential property buyers, it's crucial to understand that regulations on short-term rentals will tighten, impacting the profitability of Airbnb-style investments. This trend is expected to continue as more cities recognize the need to protect their housing markets.
Investors should be aware that these regulations could limit the availability of properties for short-term rental, affecting potential returns. Staying informed about local laws and upcoming changes is essential for making sound investment decisions.
Sources: Iran Gasht Tour, Travel Market Report, Travel and Tour World
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) Lesser-known islands like Sifnos will attract more foreign buyers seeking an authentic Greek experience
In recent years, foreign buyers have shown a growing interest in lesser-known Greek islands like Sifnos. This trend is largely driven by the rising property sales statistics, with Sifnos experiencing a notable increase in property sales in 2023. Properties such as a two-story residence in Kamares and a villa with a pool in Katavati have attracted attention due to their affordability compared to more popular destinations like Mykonos or Santorini.
Real estate agencies on islands like Sifnos have reported increasing inquiries and transactions from foreign buyers. Properties in Sifnos, such as the semi-detached house in Exambela, are drawing significant interest. This surge in interest is supported by media coverage that highlights the authentic Greek experiences offered by these islands, emphasizing their picturesque villages, charming beaches, and traditional architecture.
Social media trends also play a crucial role, with platforms like Instagram showcasing the beauty and tranquility of Sifnos, further attracting foreign buyers. Testimonials from those who have already purchased property on these islands praise the charm and authenticity of destinations like Sifnos, reinforcing its appeal. Additionally, the Greek government's Golden Visa program has been a significant driver of foreign investment, offering residency permits to non-EU citizens who invest in Greek real estate.
Sources: NTL Trust, Houses in Greece, The Wanderbug
10) Favorable exchange rates will bring more British buyers back to the market
In the past, when the British pound was strong against the euro, British buyers showed a keen interest in purchasing properties in the Greek Islands. This historical pattern indicates that favorable exchange rates can significantly boost British investment in Greek real estate.
Recently, the British pound has been strengthening against the euro, making Greek properties more affordable for British buyers. This trend has led to increased interest and activity from British clients in the Greek real estate market.
Real estate agencies in Greece have reported a noticeable rise in inquiries and purchases from British buyers, attributing this surge to the favorable exchange rates. Additionally, economic forecasts suggest that the British pound will continue to remain strong, maintaining the appeal of Greek properties for British investors.
Sources: Global Property Guide, NTL Trust
11) Rental yields in the Sporades will rise as they become popular with eco-conscious travelers
The Sporades are becoming a hotspot for eco-conscious travelers.
These islands, like Skiathos, Skopelos, and Alonissos, are seeing a 25% jump in property prices in early 2024. This rise is fueled by their eco-friendly initiatives, such as Alonissos' move to eliminate plastic bags, which resonates with travelers who care about sustainability.
Green infrastructure and renewable energy projects, especially on islands like Chalki, are boosting the region's appeal. These efforts are making the Sporades a top choice for those seeking environmentally responsible travel.
As more travelers flock to these islands, rental yields are expected to rise. The Sporades' commitment to sustainability is not just a trend; it's a driving force behind their growing popularity.
Investors are taking note of this shift, seeing the potential for increased rental income as the islands attract more eco-minded visitors.
With their stunning landscapes and dedication to green practices, the Sporades are set to become a leading destination for those who want to travel responsibly.
Sources: The Greek Housing Market: A Golden Opportunity for Investors, The Future of Greek Tourism: Trends and Opportunities, Responsible Travel - Greece, Eco-friendly Greek Islands to Visit Today
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12) Property prices in the Dodecanese islands will drop due to worries about overdevelopment
In recent years, the Dodecanese islands have seen a significant increase in property development projects. This surge, part of a broader €45 billion investment in the Greek property market, has raised concerns about overdevelopment in the region. With €40 billion allocated for new homes, the rapid pace of construction is causing unease among locals and potential buyers.
Environmental degradation is another pressing issue linked to this development boom. The construction industry in Greece, including the Dodecanese, poses risks such as pollution from disturbed asbestos and other hazardous materials. These environmental concerns can deter buyers and investors, as they worry about the long-term impact on the islands' natural beauty and livability.
Surveys have shown that both locals and tourists are increasingly worried about the effects of overdevelopment. This sentiment is crucial because it can negatively influence property prices. When people perceive an area as overdeveloped, they become more cautious about investing, leading to a potential decline in demand and property values.
Sources: Esales International, P1 Enviro, To Vima
13) Mykonos rental yields will drop as the market gets saturated with short-term rentals
In recent years, Mykonos has seen a significant increase in the number of short-term rental listings. By September 2024, there were 2,778 active Airbnb listings, indicating a saturated market. This oversupply can lead to decreased rental yields as more properties compete for the same pool of guests.
Despite a stable average daily rate of €301, the revenue per available room (RevPAR) only showed a modest 5% rise in 2024. This suggests that while there is some stabilization, the potential for growth is limited. If the number of listings continues to rise, it could put downward pressure on rates, further affecting rental yields.
The increased competition among property owners has likely led to price undercutting. As owners try to attract more guests by reducing prices, rental yields can decline. Additionally, the median occupancy rate in Mykonos is 71%, which, while good, may not be increasing at the same rate as the number of listings. This could indicate a saturated market and lower rental yields.
Sources: Airbtics, Greek City Times
14) Luxury villas with private pools will attract interest for their privacy and exclusivity
Luxury villas with private pools are gaining popularity because they offer a unique mix of privacy and exclusivity.
In recent years, there's been a noticeable uptick in demand for luxury travel, especially in Greece. Bookings for Greece have surged by 29%, showing that high-spending tourists are leaning towards luxurious stays. This trend is not just about the accommodation; it's about the whole experience. Greece, with its stunning landscapes and rich history, is a magnet for those seeking something special.
Travelers today are veering away from traditional tours, craving more personalized experiences. Greece ranks seventh globally in attracting high-net-worth individuals, thanks to its exclusive vacation properties. The Greek Golden Visa Program has played a big role here, drawing in over €1.32 billion in foreign investment in 2023. This program offers residency to those who invest in Greek real estate, making it a hot spot for luxury property seekers.
Consumer surveys show a shift towards private accommodations over hotels. Nearly 30% of travelers now prefer holiday homes with outdoor amenities. This is not just about having a place to stay; it's about enjoying a lifestyle. Luxury villas with private pools offer amenities that many don't have at home, making them a top choice for those looking to indulge.
Platforms like Vrbo are seeing a rise in bookings for these luxury villas. 42% of travelers book luxury villas to enjoy amenities they might not have at home. This trend highlights a growing desire for unique and exclusive experiences, where privacy is a key factor.
Sources: BNB News, GlobeVisa, Country and Town House, The Luxury Playbook
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) Rental yields in Crete will decrease as more properties become available
In recent years, Crete has seen a significant increase in the number of new property developments. Areas like Agios Pavlos, Agia Galini, and Plakia have ongoing construction projects, which are adding to the existing supply of properties.
The number of property listings on real estate platforms has been rising, indicating a surge in available rental properties. In Heraklion, for example, there has been a noticeable uptick in the average rental price of residences, but this could be influenced by the growing supply.
Real estate agencies in Crete have also reported an increase in available rental properties. Although rental prices in Heraklion increased by 4.50%, this might not be sustainable with the rising supply.
Sources: Argophilia, Argophilia
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.