Is buying a property in Kolonaki a good investment?

Last updated on December 29, 2023

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

If you've experienced the upscale shopping and cosmopolitan atmosphere of Kolonaki, you may have thought about investing in property in this Athens 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 Kolonaki?

Kolonaki, nestled in the heart of Athens, stands out as a prime location for property buyers, and there are several reasons why it's become a sought-after area.

Let's explore what sets Kolonaki apart, how it compares to other areas in Athens, its history of popularity, the type of people it attracts, and some of its potential drawbacks.

Firstly, think of Kolonaki as the blend of classic charm and modern luxury. Unlike many other areas in Athens, it offers a unique mix of historical buildings and contemporary amenities.

You'll find elegant neoclassical architecture alongside chic boutiques and upscale restaurants. This blend of old and new is something you won't see in many other districts, making Kolonaki not just a place to live, but a place to experience a certain lifestyle.

Comparatively, when you look at other areas in Athens, Kolonaki stands out for its upscale ambiance. Places like Exarchia or Gazi, while vibrant and full of life, have a more bohemian and alternative vibe.

In contrast, Kolonaki exudes sophistication and exclusivity, which naturally attracts a different kind of property buyer.

The rise in popularity of Kolonaki as a real estate haven isn't a recent trend. Post World War II, it began to gain recognition as an affluent and fashionable area. It's been consistently popular ever since, primarily due to its central location, proximity to major landmarks, and the high quality of life it offers.

This enduring appeal suggests that its popularity isn't just a fleeting trend but rather a sustained interest, backed by the continuous demand for properties in the area.

Typically, it appeals to those who appreciate finer things in life - professionals, diplomats, and well-to-do families. Its proximity to the Greek Parliament, foreign embassies, and cultural institutions make it particularly attractive to people in these circles. The presence of such residents also contributes to the area's reputation and desirability.

However, every coin has two sides, and Kolonaki is no exception. One of the potential drawbacks is the cost. The exclusivity and prestige come with a high price tag, making it inaccessible for many.

Additionally, due to its central location and popularity, traffic congestion and limited parking can be a daily hassle. And while the area is bustling and vibrant, it may not offer the sense of community found in more residential, family-oriented neighborhoods.

Make a profitable investment in Athens

Better information leads to better decisions. Save time and money. Download our guide.

Why is Kolonaki a nice place to live?

Living in Kolonaki offers a unique experience characterized by its lifestyle, culture, and the amenities it provides.

Let's dive into what makes Kolonaki a desirable place to call home, considering various aspects like its lifestyle, expat community, cost of living, safety, amenities, infrastructure, and accessibility.

Kolonaki is synonymous with an upscale lifestyle and a rich cultural scene. It's known for its stylish cafes, fine dining restaurants, and high-end boutiques, reflecting a luxurious way of life.

The area is also a cultural hub, with galleries and museums, such as the Benaki Museum and the Museum of Cycladic Art, offering residents and visitors a taste of Greek and international art and history.

This blend of modernity and cultural richness makes living in Kolonaki an appealing choice for those who appreciate the finer things in life.

The expat community in Kolonaki is quite vibrant, thanks to its central location, proximity to embassies, and multinational companies.

Expats often choose Kolonaki for its cosmopolitan atmosphere, making it easier to find communities and networks from various international backgrounds. This diversity contributes to the area's dynamic and inclusive feel.

Regarding cost, living in Kolonaki is on the higher end. Being one of Athens' most prestigious neighborhoods, housing and living expenses here are above average compared to other parts of the city. While this might be a deterrent for some, those who choose to live here often find the quality of life justifies the cost.

Safety is a crucial aspect of any living area, and Kolonaki scores well in this regard. It's considered one of the safer parts of Athens, with lower crime rates and a generally secure environment. This aspect is particularly reassuring for families and individuals who prioritize safety in their living environment.

In terms of amenities and facilities, Kolonaki is well-equipped. For healthcare, there are several options, including the nearby Evangelismos Hospital, one of the largest in Athens.

Educational needs are well catered to, with a range of schools, including the Arsakeio and Moraitis School, known for their high educational standards. Shopping is a pleasure here, with an array of shopping centers and boutique stores lining its streets, such as the Attica Department Store.

The quality of infrastructure in Kolonaki is generally good. The roads are well-maintained, and the area boasts reliable utilities and excellent internet connectivity, which is a must in today's connected world. These factors contribute significantly to the overall quality of life in the area.

Accessibility is another strong point for Kolonaki. It's well-connected to other parts of Athens, making it easy to commute or explore the city.

The area is also relatively close to major transport hubs like the Athens International Airport, which is about a 30-minute drive away, depending on traffic.

Public transportation options are plentiful. The Athens Metro serves Kolonaki, with stations like Evangelismos and Syntagma nearby, providing fast and efficient access to various parts of the city.

Additionally, there are numerous bus and trolleybus lines serving the area, making public transportation a convenient option for residents.

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

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 Kolonaki can vary in cost depending on several factors including the type of property and market trends.

In Kolonaki, you'll find a diverse range of residential properties, from apartments and houses to luxury villas. Each offers its unique appeal, catering to different preferences and lifestyles.

Apartments, especially those with views of the Acropolis or Lycabettus Hill, are particularly in high demand in Kolonaki. This demand stems from the neighborhood's central location, its historic and cultural significance, and the luxurious lifestyle it offers.

People are drawn to the charm of living in a vibrant, upscale area that's close to cultural landmarks, fine dining, and high-end shopping.

In terms of property types, Kolonaki primarily features resale properties. These often include elegant, neoclassical buildings and modern apartments.

While there are some new developments, the area is known for its historical architecture, so new projects are relatively limited compared to other parts of Athens. This scarcity of new developments adds to the exclusivity and demand for properties in this area.

Regarding pricing, the cost of buying property in Kolonaki can be quite high. Prices per square meter can vary widely, but you can expect them to be significantly higher than the average in Athens.

While exact numbers fluctuate, properties in Kolonaki are often priced at the higher end of the market due to their prestigious location and the high quality of life they offer.

Over recent years, property values in Kolonaki have seen fluctuations but generally, there's been a trend of steady appreciation. This trend is influenced by the neighborhood's enduring appeal, the limited availability of new properties, and the overall real estate market trends in Athens.

Looking ahead, the real estate market in Kolonaki is likely to remain robust. Factors such as ongoing urban development projects in Athens, the neighborhood's enduring appeal to affluent buyers.

And Greece's growing popularity as a real estate investment destination could continue to drive interest and investment in Kolonaki.

Predicting future real estate trends can be complex, but certain indicators suggest a potential increase in property values in Kolonaki.

These include the area's limited space for new developments, which creates a scarcity of properties, and the ongoing interest in high-end real estate in central Athens locations.

Additionally, any city planning changes that enhance the area's infrastructure or accessibility could further increase property values.

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

When considering the best area to buy property in Kolonaki it's essential to understand the nuances of this prestigious neighborhood.

Kolonaki, with its diverse atmospheres, property types, and varying price points, offers different experiences depending on where you choose to settle.

Firstly, Kolonaki is known for its sophisticated urban charm. The area near Kolonaki Square, with its bustling cafes and luxury boutiques, has a vibrant, cosmopolitan atmosphere. Properties here are often sought-after for their central location and the lively lifestyle they offer.

Here, you'll mostly find elegant apartments and penthouses, some with stunning views of the Acropolis or Lycabettus Hill. Due to their prime location and high demand, prices in this area tend to be on the higher end.

Moving slightly away from the square, the atmosphere becomes more serene, yet still retains the upscale feel. Streets like Tsakalof and Patriarchou Ioakim are known for their beautiful neoclassical buildings and quieter ambiance, making them desirable for those looking for a blend of luxury and tranquility.

The properties in these areas are often spacious, with high ceilings and classic architectural details. While still expensive, they might offer slightly better value compared to the heart of Kolonaki.

For buyers interested in up-and-coming areas within Kolonaki, one area to consider is around the National Research Foundation and the Athens University of Economics and Business. This area has been gaining interest due to its proximity to educational institutions and potential for future development.

Properties here might offer a good balance between location and value, especially for those looking to invest in the longer term.

In terms of where it's advisable to look for property, areas around Lykavittos Hill are highly recommended. This part of Kolonaki not only offers spectacular views but also a peaceful and exclusive living experience.

The properties here, often featuring luxurious amenities and large balconies or gardens, are perfect for those who prioritize privacy and elegance.

On the contrary, areas closer to the boundary of Exarchia, while still within Kolonaki, might be less advisable for some buyers.

This border area can sometimes contrast sharply with the polished atmosphere of central Kolonaki, as Exarchia is known for its bohemian and edgier vibe. While this might appeal to some, those looking for the quintessential Kolonaki experience might find it less suitable.

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 Trend
Near Kolonaki Square	Vibrant, cosmopolitan	Elegant apartments, penthouses	High
Tsakalof and Patriarchou Ioakim	Serene, upscale	Spacious apartments with classic details	High, slightly better value
Near National Research Foundation and Athens University of Economics and Business	Emerging, potential for development	Varying types, potential investment properties	Moderate, good long-term investment
Lykavittos Hill	Peaceful, exclusive	Luxurious properties with amenities	Very high
Border of Exarchia	Bohemian, edgier	Diverse, varies from luxury to simpler options	Lower, varies

Don't lose money on your property in Athens

100% of people who have lost money in Greece have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.

Is there a strong rental demand in Kolonaki?

In Kolonaki there is indeed a strong rental demand, shaped by various factors including the type of rentals, the target demographic, and the specific needs of potential tenants.

Kolonaki, with its upscale ambiance and central location, attracts a diverse range of tenants. The demand for rentals here is quite balanced between short-term and long-term leases.

Short-term rentals are popular, particularly due to the area's appeal to tourists and business travelers seeking a luxurious and convenient stay in Athens.

Long-term rentals are also in demand, mostly from professionals, diplomats, and expatriates who prefer Kolonaki for its prestige, amenities, and proximity to key business and cultural areas.

The profile of potential tenants in Kolonaki is quite specific. For short-term rentals, tourists and business travelers often look for modern, well-furnished apartments that offer comfort and convenience.

They prefer properties that are close to major attractions, restaurants, and transportation links. For long-term rentals, the tenants are typically professionals, affluent individuals, or families.

They often seek spacious, high-quality apartments or houses, with a preference for added luxuries such as balconies with views, modern amenities, and security features.

In terms of specific areas within Kolonaki, demand is particularly high around Kolonaki Square and streets like Tsakalof and Patriarchou Ioakim, known for their charm and proximity to various amenities. Properties near Lykavittos Hill are also sought after, especially for their views and serene environment.

Certain amenities can significantly enhance the rental appeal of a property in Kolonaki. Features like secure parking, high-speed internet, modern kitchens and bathrooms, and air conditioning are particularly valued.

For short-term rentals, fully furnished properties with all necessary living amenities are preferred. These features not only attract tenants more easily but also help in reducing vacancy periods.

Regarding potential returns on investment, properties in Kolonaki can yield attractive returns, especially considering the area's high rental demand. For well-located and well-maintained properties, landlords can expect a good rental income.

While specific numbers can vary, properties in Kolonaki often yield higher returns compared to other areas in Athens, owing to the neighborhood's desirability and higher rental rates.

Looking at the types of properties gaining more demand, modern apartments that are well-equipped and furnished, especially those suitable for short-term rentals, are increasingly popular. They cater to the growing trend of travelers seeking comfortable and luxurious accommodations.

Similarly, larger apartments or houses that appeal to affluent long-term tenants can also yield good returns, given the demand from professionals and families looking for quality living in a prestigious area.

Make sure you understand the real estate market in Athens

Don't rush into buying the wrong property in Greece. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.

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

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 in Kolonaki, Athens as a foreigner is relatively straightforward, but there are certain aspects that need careful consideration.

Understanding the regulations, the purchasing process, potential risks, and the importance of local expertise can make the experience smoother and more successful.

Firstly, regarding regulations and restrictions, Greece is quite open to foreign property buyers. There are no specific restrictions for non-EU citizens purchasing property in Kolonaki or other parts of Athens.

However, it's important to be aware of the legal requirements, such as obtaining a tax identification number and opening a Greek bank account, which are necessary steps in the property buying process.

The purchasing process in Kolonaki involves several key steps. After identifying a suitable property, a buyer typically makes an offer through their real estate agent.

Once the offer is accepted, a preliminary contract is drawn up, and the buyer pays a deposit. A thorough legal check on the property is then conducted, usually by a lawyer, to ensure there are no outstanding issues.

Finally, the sale is completed with the signing of the final contract and the payment of the remaining balance, taxes, and fees. The whole process can take several weeks to a few months.

Regarding risks, one primary consideration is the property's legal status. It's crucial to ensure that the property has clear ownership titles and no outstanding debts or legal issues.

Additionally, understanding the local real estate market is important to avoid overpaying. Fluctuations in property values and the potential impact of economic factors on the Greek real estate market are also risks to consider.

Common pitfalls often involve underestimating additional costs such as transfer taxes, notary fees, and legal expenses. Foreign buyers might also face challenges due to language barriers or unfamiliarity with local regulations and market practices.

Unique to Greece, it's important to ensure that the property complies with all urban planning and building regulations, as irregularities can be a significant issue.

Working with a local real estate agent or lawyer is highly advisable. They can provide invaluable assistance in navigating the legalities, understanding the local market, handling negotiations, and ensuring all paperwork is correctly managed.

As for exit strategies, property investors in Kolonaki typically consider a few options. One common strategy is to hold the property long-term, benefitting from rental income and potential capital appreciation.

Another option is to renovate and sell the property, particularly in an upscale area like Kolonaki where well-renovated properties can fetch premium prices.

Lastly, some investors might consider leveraging the Greek Golden Visa program, which offers residency permits to non-EU citizens who invest a significant amount in Greek real estate, thus adding value to their investment.