Is buying a property in Kalamaria a good investment?

Last updated on December 29, 2023

Yes, the analysis of Thessaloniki's property market is included in our pack

If you've enjoyed the coastal lifestyle and urban convenience of Kalamaria, you might think about investing in property in this Thessaloniki district.

Is it a good idea though? What's the current state of the real estate market in that area? Are property values appreciating or depreciating? Are investors seeing returns on their real estate investments? How's the demand for rentals?

We'll answer all these questions for you! When building and updating our property pack for Greece, our team has been researching and surveying this area. In fact, there is significant customer interest in investing there. Therefore, we believe it would be beneficial to include some information about it in our property pack.

Why do property buyers like investing in Kalamaria?

Kalamaria, a district in Thessaloniki, Greece has emerged as a highly sought-after location for property buyers, and for good reason.

Its appeal lies in a combination of unique attributes that distinguish it from other real estate markets, not just in Thessaloniki, but also more broadly.

One of the most compelling aspects of Kalamaria is its coastal charm. Unlike many urban areas, Kalamaria offers the rare combination of city amenities and a picturesque seaside setting.

This waterfront allure is a significant draw for those who yearn for a balance of urban convenience and natural beauty. Imagine stepping out of your home to view the Thermaic Gulf, something you won't find in many other Thessaloniki neighborhoods.

Moreover, Kalamaria's popularity as a real estate hotspot isn't a recent phenomenon. It began gaining traction in the late 20th century, especially as Thessaloniki expanded. What's intriguing is that its popularity isn't just a fleeting trend.

The sustained demand for properties here is backed by substantial factors like its well-developed infrastructure, thriving local economy, and high quality of life. These factors indicate that Kalamaria's appeal is likely to endure.

The district attracts a diverse range of people, from young professionals and families to retirees. This diversity is a testament to Kalamaria's versatile appeal.

Whether you're starting a career, raising a family, or seeking a peaceful retirement, Kalamaria has something to offer. Its schools, parks, and cultural offerings make it family-friendly, while the vibrant dining and shopping scenes appeal to younger generations.

However, it's crucial to acknowledge that Kalamaria, like any area, has its drawbacks. One potential downside is the higher property prices and cost of living compared to other Thessaloniki neighborhoods. This can be a barrier for some buyers.

Additionally, the popularity of the area means that it can get crowded, especially during peak tourist seasons. This could detract from the tranquility that many seek in a coastal town.

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Why is Kalamaria a nice place to live?

Kalamaria is often regarded as a nice place to live, and there are several reasons that contribute to this perception.

The lifestyle and culture in Kalamaria are unique, offering a blend of traditional Greek charm with modern amenities. The area is known for its scenic waterfront and the relaxed pace of life, which stands in contrast to the bustling energy of central Thessaloniki.

The expat community in Kalamaria is thriving, with many foreigners finding the area appealing for its quality of life and cultural richness. This international presence adds to the diversity of the district, creating a welcoming atmosphere for people from various backgrounds.

In terms of living costs, Kalamaria is generally considered to be more upscale than other parts of Thessaloniki. This means that the cost of living can be higher, especially in terms of real estate prices. Many find that the quality of life justifies the expense.

Safety is a notable aspect of Kalamaria. It is considered to be one of the safer areas in Thessaloniki, with low crime rates contributing to a sense of security among residents. This makes it a particularly attractive option for families and those who prioritize a safe living environment.

When it comes to amenities and facilities, Kalamaria is well-equipped. The area boasts several reputable schools, both public and private, catering to the educational needs of families.

In terms of healthcare, the district is home to several clinics and is in close proximity to some of Thessaloniki's major hospitals. For shopping and leisure, residents can enjoy a variety of options, including shopping centers like Mediterranean Cosmos, one of the largest in the Balkans.

The quality of infrastructure in Kalamaria is commendable. The roads are generally well-maintained, and utilities like electricity and water supply are reliable. Internet connectivity is also robust, catering to the needs of both residents and businesses.

Accessibility is another strong point for Kalamaria. It is well-connected to other parts of Thessaloniki, making it easy to travel to and from different areas of the city.

Proximity to major transport hubs, such as the Thessaloniki International Airport, adds to the convenience, especially for those who travel frequently.

Public transportation options in Kalamaria include buses, which are a common mode of transport. The bus network is extensive, providing easy access to various parts of Thessaloniki. This makes commuting relatively straightforward, whether you're going to work, school, or exploring different parts of the city.

How much does it cost to buy real estate in Kalamaria?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Greece.

Buying a property in Kalamaria, varies in cost depending on several factors, including the type of property and its location within the district.

In Kalamaria, you'll find a diverse range of residential properties, such as apartments, houses, and even luxury villas. The choice largely depends on your lifestyle preferences and budget.

Apartments, especially those with sea views or close to the waterfront, are in high demand. This is partly due to the scenic beauty and the relaxed lifestyle associated with living near the sea.

Houses and luxury villas are also sought after but might cater to a different segment, possibly those looking for more space or privacy.

In terms of market composition, Kalamaria features a mix of new developments and resale properties. New developments are often modern, with contemporary amenities, attracting buyers interested in the latest architectural styles and conveniences.

On the other hand, resale properties might appeal to those looking for traditional charm or perhaps a more budget-friendly option.

The price range for properties in Kalamaria can vary significantly. Prices per square meter can range from moderate to quite high, especially for properties with unique features or prime locations. For a more exact figure, you'd typically look at current listings or consult with real estate professionals in the area.

Over recent years, property values in Kalamaria have shown a tendency to increase. This trend is influenced by factors such as the district's growing popularity, its coastal charm, and the general real estate dynamics in Thessaloniki.

Looking ahead, there might be upcoming developments or city planning changes that could impact property values. Such developments often bring new amenities or improvements to the area, making it more attractive to potential buyers and, consequently, influencing property prices.

Predicting the future of the real estate market in Kalamaria involves considering various factors. Given its popularity, the ongoing demand for properties, and the limited supply, especially for homes with specific desirable features (like sea views), prices might continue to rise.

Finally, several factors indicate a potential increase in value for properties in Kalamaria. These include the district's continuous popularity, its strategic location with seaside appeal, the quality of life it offers, and the overall trend in the Thessaloniki real estate market.

All these elements combine to make Kalamaria an attractive prospect for property buyers, suggesting a positive outlook for property values in the coming years.

Where is the best area to buy a property in Kalamaria?

When considering the best area to buy a property in Kalamaria, it's important to understand that different parts of Kalamaria offer varied experiences in terms of atmosphere, property types, and prices.

Kalamaria is diverse, with some areas being more residential and tranquil, while others are bustling with activity. For instance, the waterfront areas are highly sought after for their scenic views and proximity to the sea.

These areas typically feature a mix of luxurious apartments and some exclusive villas, often commanding higher prices due to their desirable location.

Then, there are the more central parts of Kalamaria, which are closer to amenities like shops, restaurants, and schools. These areas tend to have a more urban feel.

You'll find a range of properties here, from older, more traditional houses to modern apartments. Prices in these central areas can be quite varied, offering options for different budgets.

In terms of up-and-coming areas within Kalamaria, there are neighborhoods that are gaining popularity due to new developments or improved amenities. These areas might not be as established as the prime waterfront locations but could offer good value for money.

They might be especially appealing if you're looking for newer properties or expecting future growth in property values.

For those considering where to buy, areas along the coastline, like Aretsou, Nea Krini, and Karabournaki, are often recommended.

These areas are known for their beautiful settings and generally higher-end properties. They're great if you're looking for a property with a view or a more relaxed, upscale lifestyle.

On the contrary, there are areas in Kalamaria that might not be as advisable for property purchase, depending on your needs and preferences. Some parts may be further from the city center or the sea, lacking the charm and convenience that other areas in Kalamaria offer.

Additionally, some neighborhoods might be more densely populated or lacking in certain amenities, which could be a drawback depending on what you're looking for in a home.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Greece.

Area	Atmosphere	Property Types	Price Range
Waterfront Areas (e.g., Aretsou, Nea Krini, Karabournaki)	Scenic and tranquil	Luxurious apartments, exclusive villas	Higher
Central Kalamaria	Urban, closer to amenities	Mix of traditional houses and modern apartments	Varied
Up-and-coming Neighborhoods	Developing, future growth potential	Newer properties	Good value for money
Further from Center/Sea	Less convenient, potentially denser	Varied	Lower to mid-range

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Is there a strong rental demand in Kalamaria?

In Kalamaria, there is indeed a strong demand for rental properties but the nature of this demand varies between short-term and long-term rentals.

Starting with short-term rentals, Kalamaria's scenic beauty, especially near the waterfront, makes it a popular choice for tourists and visitors. This demand is largely seasonal, peaking during holidays and summer months.

Properties that offer sea views or proximity to the coastline are particularly sought after. Apartments, especially modern ones with good amenities, tend to be the preferred choice for short-term tenants.

On the other hand, long-term rentals in Kalamaria cater to a different demographic. These are often professionals working in Thessaloniki, families, and sometimes students from nearby educational institutions. For long-term rentals, tenants usually look for stability and convenience.

Thus, properties closer to essential amenities like schools, shopping areas, and public transportation are in higher demand. In this category, both apartments and houses can be appealing, depending on the tenant's needs.

When considering the profile of potential tenants, it's important to note that Kalamaria attracts a diverse group. For short-term rentals, the tenants are typically tourists or business travelers.

While for long-term rentals, they are more likely to be working professionals, families looking for a residential area with a good quality of life, or international students and expats.

In terms of specific areas within Kalamaria, neighborhoods like Aretsou, Nea Krini, and Karabournaki are popular for both short-term and long-term rentals due to their proximity to the sea and overall ambience.

Amenities that can help reduce vacancy and attract tenants include modern furnishings, high-speed internet, proximity to public transport, and, if possible, a view or access to the sea. These amenities cater to the lifestyle preferences of the potential tenants and can significantly enhance the appeal of a property.

Regarding the potential returns on investment for properties in Kalamaria, it largely depends on the type and location of the property.

However, considering the area's popularity, property owners can expect a reasonable return, particularly if the property is well-maintained and strategically located. For short-term rentals, returns can be higher during peak seasons, while long-term rentals offer more stable, albeit potentially lower, annual returns.

Properties that are increasingly in demand, and thus could potentially offer better yields, are modern apartments with amenities in prime locations, especially those with sea views or easy access to the city's attractions.

Such properties cater to both short-term and long-term rental markets, offering versatility and the potential for higher rental income.

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Is it easy to buy a property as foreigner in Kalamaria?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in Greece.

Buying a property as a foreigner in Kalamaria, Thessaloniki is relatively straightforward, but there are certain aspects that need to be considered to ensure a smooth process.

Firstly, in Greece, there are no major restrictions on foreign buyers purchasing property, which includes Kalamaria in Thessaloniki. It's important to be aware of specific regulations that might apply, especially if you are a non-EU citizen.

For instance, certain areas in Greece require special permission for non-EU citizens to buy property, although this is typically more relevant to border regions and not usually an issue in Kalamaria.

The purchasing process in Kalamaria generally follows standard procedures common in Greece. This includes conducting a legal check on the property to ensure no outstanding debts or legal issues, signing a pre-contract, and then proceeding to the final contract which is executed before a public notary.

A key step in this process is obtaining a Greek tax identification number (AFM), which is necessary for property transactions.

One of the primary risks associated with property investment in Kalamaria, as with any real estate investment, is the fluctuation in property values.

The market can be influenced by various factors, including economic conditions and changes in local demand, unexpected maintenance costs or issues with property titles can also pose risks.

Common pitfalls or mistakes when buying property in Greece often relate to legal and bureaucratic issues. For example, ensuring that the property has a clear title and is free of any debts is crucial.

Also unique to Greece is the importance of ensuring that the property's physical characteristics and use are accurately reflected in the official registry, as discrepancies can lead to significant legal and financial issues.

Working with a local real estate agent and a lawyer is highly recommended, especially for foreign buyers. A local agent can provide valuable insights into the Kalamaria market, assist in finding properties that meet your criteria, and help navigate local practices.

A lawyer, on the other hand, is essential for conducting legal due diligence, ensuring compliance with Greek property law, and guiding you through the legal aspects of the transaction.

Finally, when it comes to exit strategies for property investors in Kalamaria, the common approaches include selling the property for capital gain, especially if the market has appreciated, or renting it out for a steady income stream.

The choice of strategy should align with your investment goals and the market conditions at the time of exit.