Authored by the expert who managed and guided the team behind the Greece Property Pack
Yes, the analysis of the Peloponnese's property market is included in our pack
What will happen in the Peloponnese’s real estate market? Will prices go up or down? Is Kalamata still a hotspot for foreign investors? How is Greece’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with local real estate agents, developers, and clients who buy properties in the Peloponnese, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: 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.
1) Foreign investment in the Peloponnese will grow as international buyers look for historically significant properties
The Peloponnese is becoming a top choice for foreign property buyers interested in history.
In 2023, foreign buyers poured €3 billion into Greek real estate, with a big chunk going to the Peloponnese. This area is a magnet for those who love history and culture, making it a prime spot for investment. The region's rich past and cultural heritage are major draws for international buyers.
Greece's historical sites are seeing a surge in visitors, with places like the Acropolis almost back to their pre-pandemic popularity. This uptick in cultural tourism is a sign of growing interest in Greece's heritage, which naturally spills over to the Peloponnese. The media often highlights the area's cultural richness, further boosting its international appeal.
The Greek government is sweetening the deal with policies like the Golden Visa program, which is a big hit among foreign investors. These incentives are especially tempting for those eyeing historically significant spots like the Peloponnese. The global trend in real estate is leaning towards culturally rich locations, which aligns perfectly with what the Peloponnese offers.
Investors are not just buying properties; they're buying a piece of history. The Peloponnese offers a unique blend of ancient ruins and modern living, making it a unique investment opportunity. This combination of history and modernity is what sets the region apart.
With its historical allure and government incentives, the Peloponnese is poised to see a rise in foreign investment. International buyers are increasingly drawn to properties that offer more than just a place to live; they want a connection to the past.
Sources: Grekodom, Greece Is, Skouras Real Estate, Global Property Guide
2) More foreign buyers will seek luxury properties in the Peloponnese due to their affordability compared to other European spots
The Peloponnese is quickly becoming a favorite for foreign buyers looking for affordable luxury properties.
In 2023, foreign investments in Greek real estate hit over €1.644 million, with a big chunk going to the Peloponnese. This shows the region's growing charm for international buyers. The Greek Golden Visa program is also seeing more applications, indicating a wider interest in Greek real estate, especially in the Peloponnese.
The luxury housing market in the Peloponnese is booming, thanks to its natural beauty and strategic location. It's cheaper than other European luxury spots, making it a hot pick for international buyers. New real estate projects are popping up, catering to this demand.
Foreign buyers love the mix of affordability and luxury in the Peloponnese. Many testimonials highlight this unique blend. The media is also buzzing about the Peloponnese as a rising luxury destination, which is drawing even more international attention.
Tourism is on the rise in the Peloponnese, with international arrivals up by 12% in early 2024. This growing interest is likely to boost real estate investments. The region offers a great quality of life with its historical sites, natural beauty, and modern amenities, making it attractive to foreign buyers.
Surveys show a spike in interest for Mediterranean properties, including those in the Peloponnese. The area's favorable climate and rich cultural heritage are big draws. Plus, the Greek government's incentives, like the Golden Visa, are encouraging more foreign investments.
With remote work on the rise, more people are considering living abroad, and the Peloponnese is becoming a top choice for those wanting a work-life balance. Social media influencers are also shining a light on the Peloponnese as a luxury spot, boosting its profile.
Sources: Greek Exclusive Properties, ETIAS, FTN News
We made this infographic to show you how property prices in Greece compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
3) Rents in coastal towns will increase as they become more popular with locals and tourists
Rents in coastal towns are on the rise as these areas become more attractive to both locals and tourists.
Take the Peloponnese region, for instance. It's been buzzing with activity lately. In the first quarter of 2024, visitor numbers shot up by 31.2%, and they didn't just come to look around—they spent money, with spending increasing by 34.2%. This isn't just a fluke; it's a trend that's been building over recent years.
What's driving this boom? Well, there's been a lot of investment in coastal infrastructure and amenities. Think luxury real estate. High-end resorts like Costa Navarino Dunes Resort and Amanzoe are popping up, drawing in luxury travelers and giving the local economy a nice boost. These developments are making coastal towns even more appealing to tourists and potential residents alike.
And it's not just about the fancy resorts. Coastal towns are getting a lot of love in travel guides and media. They're being praised for their unspoiled beaches and rich cultural heritage, not to mention their convenient proximity to Athens. This kind of visibility is like a magnet for travelers looking for a mix of culture and relaxation, which in turn is driving up demand for rental properties.
So, if you're thinking about buying property in these areas, it's worth noting that the buzz isn't just hype. The combination of increased tourism, luxury investments, and media attention is creating a perfect storm for rising rents. It's a good time to get in on the action if you're considering a coastal investment.
Sources: Travel and Tour World, The Historian Traveller, Investing.com
4) The market for older homes in the Peloponnese will grow due to new tax incentives for renovations
The Greek government's new tax incentives are set to revitalize the property renovation market in the Peloponnese.
These incentives offer a three-year income tax exemption for renovated properties rented out long-term, making older homes more appealing to buyers. This policy aims to ease the financial strain of renovations, encouraging more investments in the region.
In the Peloponnese, there's a noticeable uptick in demand for residential real estate, especially in areas favored by tourists and retirees. This trend indicates a seller's market, where tax incentives could further heighten interest in older homes. Successful projects under initiatives like ‘Renovate-Rent’ have shown that property values can significantly increase, highlighting the financial upside of these investments.
Consumer surveys show a growing interest in buying older homes, spurred by tax incentives and the potential for lucrative rental income in tourist hotspots. This interest is evident in the rise in renovation permit applications, a direct response to the incentives. Real estate agents and media coverage emphasize the benefits and rising demand for older properties, underscoring the positive impact of these tax incentives.
In the Peloponnese, the combination of tax breaks and the allure of rental income is creating a buzz around older homes. Buyers are increasingly drawn to the region, seeing it as a chance to invest in properties that promise both charm and profitability.
With these incentives, the Peloponnese is poised to become a hotspot for property investment, offering a unique blend of cultural heritage and modern financial benefits. The market is ripe for those looking to capitalize on the newly introduced tax advantages and the region's growing appeal.
Sources: To Vima, NAR Realtor, Italy House Hunting
5) Luxury real estate demand will rise in the Mani Peninsula as wealthy buyers look for unique, secluded properties
The Mani Peninsula is quickly becoming a hotspot for luxury real estate investments.
Property prices here are climbing, and experts predict they'll keep rising thanks to strong demand and economic recovery. This makes the area a smart choice for investors eyeing value appreciation. International interest in Greek real estate is booming, especially among affluent buyers who crave unique and secluded spots.
The Golden Visa program is a game-changer, offering residency to those who invest in real estate, which has fueled the demand for high-end properties in the Mani Peninsula. Luxury developments like The Architect's Villa and Ilias Estate highlight the area's potential. These properties boast stunning views, modern amenities, and a mix of traditional and contemporary design, perfect for those seeking exclusivity and privacy.
The region's tourism sector is on the rise, and with improved infrastructure, it's becoming more accessible and desirable. This combination of factors is turning the Mani Peninsula into a prime location for luxury real estate. The area's charm lies in its ability to offer both seclusion and modern comforts, making it a magnet for those looking to invest in a unique lifestyle.
With its breathtaking landscapes and rich cultural heritage, the Mani Peninsula is not just a place to buy property; it's a place to experience a different way of life. The blend of natural beauty and luxury living is what sets this region apart, attracting buyers from all over the world.
Sources: The Luxury Playbook, Boutique Homes, Business Insider
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6) Rental yields in the Peloponnese will rise as short-term rentals gain popularity with tourists
Rental yields in the Peloponnese are on the rise as short-term rentals gain popularity among tourists.
Greece welcomed over 33 million visitors in 2023, and while specific numbers for the Peloponnese aren't available, this surge hints at a growing interest in the area. The Peloponnese, with its stunning landscapes and rich history, is becoming a hotspot for travelers seeking unique experiences.
Short-term rentals in Greece saw a 50% increase in bookings in 2022, painting a promising picture for the Peloponnese. This trend is further bolstered by a significant rise in short-term rental listings, with 20,000 more units added from November 2023 to November 2024. This suggests a strong demand for such properties, making it an attractive investment opportunity.
Tourists are increasingly opting for short-term rentals over traditional hotels, driven by a desire for authentic local experiences. The Peloponnese, with its rich cultural and historical offerings, perfectly caters to this trend, enhancing its appeal as a destination.
Imagine staying in a charming village house or a seaside villa, immersing yourself in the local culture. This is what the Peloponnese offers, and it's exactly what modern travelers are looking for. As more tourists seek these experiences, the demand for short-term rentals is likely to continue its upward trajectory.
Sources: The Luxury Playbook, Greek City Times, Elxis
7) Property prices in the Peloponnese will rise moderately as more international retirees find the region appealing
The Peloponnese in Greece is becoming a hot spot for international retirees, leading to a moderate rise in real estate prices.
Greece is now a top choice for retirees, ranking 7th in the Annual Global Retirement Index 2024, thanks to its stunning landscapes, sunny weather, and laid-back lifestyle. These factors make it a dream destination for those looking to enjoy their golden years.
In 2024, the property market in Greece boomed with 85,000 sales contracts in just the first half of the year. This surge is largely due to foreign investors eyeing the Peloponnese for its rental income potential, thanks to a steady stream of tourists. The average price for homes in the region jumped by 9.13% from November 2023 to November 2024, hitting €1,614 per square meter.
The Peloponnese is not just about beautiful beaches; its rich history and culture are big draws for both investors and retirees. The Greek Golden Visa program is a major attraction, encouraging foreign investment in real estate. This program, along with the region's growing fame as a tourist haven, is boosting demand for holiday homes and rentals, especially along the coast.
With its mix of ancient ruins, charming villages, and stunning coastlines, the Peloponnese offers a unique blend of old-world charm and modern convenience. This makes it an ideal spot for retirees looking for a peaceful yet vibrant place to settle down.
As more international retirees discover the Peloponnese, the region's real estate market is set to continue its upward trend, making it a smart investment for those looking to buy property in Greece.
Sources: Indomio, Immigrant Invest, Trading Economics
8) Rental yields will drop in remote Peloponnese areas as population density falls
Rural areas in the Peloponnese are seeing fewer people as population density declines.
Back in 1960, 44% of Greece's population lived in rural areas, but by 2017, that number had dropped to just over 21%. This shift means less demand for rental properties in these quieter regions.
Economic factors are also at play. With rising interest rates, mortgages are getting pricier, making it tough for potential buyers. This has led to fewer people renting in less accessible parts of the Peloponnese, leaving property owners with longer vacancy periods.
Young folks today are leaning towards city life, drawn by better jobs, schools, and a vibrant lifestyle. This urban preference is causing a noticeable migration from rural to urban areas in Greece, as people chase better opportunities.
For those considering buying property in the Peloponnese, it's worth noting that long-term rental yields might decline in these less populated areas. The trend is clear: as population density decreases, so does the demand for rentals.
Sources: CEIC Data, 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.
9) Demand for smaller, manageable homes will grow as the local population gets older
Demographic changes are reshaping housing demands in Greece, especially in regions like the Peloponnese.
As the local population ages, with 23% of Greeks aged 65 and over by 2023, there's a growing need for smaller, more manageable homes. This trend is not just a local phenomenon; it's happening across Europe as older adults seek easier-to-maintain living spaces. In Greece, the life expectancy has climbed to 83.10 years by 2025, meaning people are living longer and need homes that adapt to their evolving needs.
Financial factors are also at play. With healthcare costs rising, many are opting to downsize to cut expenses. This economic reality, coupled with the desire for convenience, is pushing the market towards smaller properties. In Greece, real estate trends are already reflecting this shift, as the aging population looks for homes that fit their budget and lifestyle.
In the Peloponnese, for instance, the demand for compact homes is noticeable. Older adults are drawn to properties that offer both affordability and ease of maintenance. This shift is not just about cost; it's about finding a home that suits their stage in life. The local real estate market is adapting, with more options for those seeking smaller, more practical living spaces.
As the population continues to age, the preference for smaller homes is expected to grow. This trend is driven by both necessity and choice, as older adults prioritize comfort and financial stability. The real estate market in Greece is responding, offering more options that cater to these needs.
Sources: Eurostat, United Nations, MacroTrends, Trading Economics
10) New development costs in the Peloponnese will rise due to stricter environmental rules, affecting property prices
Stricter environmental regulations are set to increase the cost of new developments in the Peloponnese, impacting property prices.
Greece is under pressure to comply with the European Commission’s Energy Performance of Buildings Directive, which means significant renovations to improve energy efficiency are required. This directive is not just a suggestion; it demands real changes that will inevitably raise costs for property owners and developers.
Across the EU, compliance with such regulations has historically been expensive. The European Commission has highlighted that to meet climate requirements, property owners must significantly increase renovation spending. This financial burden is expected to be substantial, affecting the overall cost of new developments.
In the Peloponnese, developers are already grappling with challenges like labor shortages and supply chain disruptions. The push for sustainable materials, while great for the environment, adds to the cost. These factors, combined with regulatory requirements, are driving up costs for developers.
For those considering buying property in the Peloponnese, it's important to understand that these changes are not just about compliance. They reflect a broader shift towards sustainability, which, while initially costly, could lead to long-term savings on energy bills and increased property value.
As these regulations take hold, the landscape of property development in the Peloponnese will change, potentially making it a more attractive investment for those who value sustainability. However, the initial financial impact cannot be ignored.
Sources: Deepki, To Vima, Impakter
11) Real estate values in the Peloponnese will rise as new infrastructure improves connectivity
The Peloponnese is becoming a hotspot for real estate due to major infrastructure upgrades.
One standout project is the Chalkida and Psachna Bypass, Evias's largest infrastructure venture, costing 210 million euros. This isn't just about Evia; it's part of a bigger plan to make the Peloponnese more accessible. Another key project is the Bralos-Amfissa Road, valued at 286 million euros, which will link important cities, making travel smoother for everyone.
The Greek government is serious about these upgrades, shown by a €250 million boost to the Public Investment Program. This funding is not just for roads; it also supports rail projects and public transport improvements, like the new lines and extensions of the Attiko Metro. The goal is to cut down on car use and make public transit a better option.
These changes are expected to bring more tourists and businesses to the Peloponnese. The area already draws visitors with its rich history and stunning landscapes. With better roads and transport, even more people are likely to come, pushing up real estate prices, especially where these projects are finished.
As these infrastructure projects wrap up, areas in the Peloponnese will become prime spots for living and investing. The improved connectivity makes them attractive not just for locals but also for international investors looking for new opportunities.
With these developments, the Peloponnese is set to become a more vibrant and connected region, making it a smart choice for anyone considering buying property there.
Sources: Ypodomes, PwC Greece, To Vima
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12) The Peloponnese will attract more long-term investors due to changes in property tax laws
The Greek government is making the Peloponnese more appealing to long-term investors by changing property tax laws.
One major change is the reduction of the Uniform Real Estate Property Tax (ENFIA) starting in 2025. This means that for homes valued up to EUR 500,000, the tax rate will drop from 10% to 20%. This is especially beneficial for those whose properties are insured against natural disasters, offering them a financial break.
Another significant update is the removal of the pretence fee or business tax for natural persons, including freelancers and self-employed individuals. This is part of a larger strategy to make the Peloponnese more attractive for long-term investments by offering favorable tax conditions.
Foreign investment in Greek real estate is booming, with nearly €2 billion invested in 2022. While specific figures for the Peloponnese aren't available, the region is likely benefiting from this trend. The Golden Visa program, which offers residency to non-EU nationals investing in Greek real estate, is a big draw, further boosting the Peloponnese's appeal.
These changes are not just about numbers; they reflect a broader effort to make the Peloponnese a hotspot for investors. The region's natural beauty and cultural heritage, combined with these tax incentives, make it a compelling choice for those looking to invest in property.
With these tax reforms, the Peloponnese is positioning itself as a prime location for long-term investment, offering both financial benefits and a unique lifestyle.
Sources: Reg Follower, Grekodom
13) Demand for family homes in the Peloponnese will rise as young families seek affordable housing and a better quality of life
Young families are flocking to the Peloponnese for its affordable housing and quality of life.
Imagine trading the hustle and bustle of Athens for the serene landscapes of the Peloponnese. Housing here is much more affordable, making it a top choice for families eager to stretch their budgets. With the rise of remote work, more people are eyeing this picturesque region, seeking a better work-life balance.
Families today are all about quality of life, and the Peloponnese delivers. Its natural beauty and cultural attractions are just the start. The vibrant food scene adds to the charm, making it a perfect fit for those who value both lifestyle and leisure.
Local authorities are catching on to this trend. They've been busy upgrading digital infrastructure, which is a big win for remote workers. This investment is drawing in digital nomads and young families alike, who are eager to enjoy the perks of modern connectivity in a stunning setting.
As more families make the move, the demand for family homes is on the rise. The Peloponnese is becoming a hotspot for those looking to escape urban life without sacrificing modern conveniences. It's a shift that's reshaping the local property market.
With its blend of affordability, beauty, and modern amenities, the Peloponnese is quickly becoming the go-to destination for young families. This trend is set to continue, as more people discover the benefits of living in this idyllic region.
Sources: Work from Kalamata, The Greek Vibe, eSales International
14) Interest in homes with office spaces in the Peloponnese will grow due to remote work trends
Remote working is booming in Greece, with a notable 60.4% of professionals choosing this lifestyle in 2023.
As more people embrace working from home, there's a growing demand for homes with dedicated office spaces. By 2024, nearly 60% of the workforce will be working remotely at least part-time, pushing families to seek homes with flexible layouts and extra rooms for offices.
The Peloponnese is becoming a hotspot for digital nomads, making it a prime location for remote workers. This trend is fueled by improved internet infrastructure in rural areas, ensuring connectivity and productivity for those working from home.
Imagine living in a picturesque Greek village while having a modern home office setup. The Peloponnese offers this unique blend, attracting more remote workers who value both lifestyle and work efficiency.
With the rise of remote work, properties in the Peloponnese are increasingly sought after for their potential to accommodate home offices. This shift is reshaping the real estate market, as more buyers prioritize homes that support their work-from-home needs.
For those considering a move, the Peloponnese provides an ideal setting with its scenic beauty and enhanced digital connectivity, making it a top choice for remote professionals.
Sources: Fast Forward, Punta, The McLemore Group
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.
15) More expats will retire in the Peloponnese, causing a demographic shift
The Peloponnese is quickly becoming a favorite spot for retirees from abroad.
In recent years, Greece's foreign-born population has surpassed 1.1 million, indicating a growing interest among expatriates to settle in the country. This trend is particularly noticeable in the Peloponnese, where more people are choosing to retire. The region's appeal is boosted by attractive residency options like the Retirement Visa and the Golden Visa, making it easier for foreigners to buy property and live there.
The Peloponnese is often in the spotlight as a retirement haven, thanks to its pleasant climate, rich cultural heritage, and laid-back lifestyle. These factors make it an ideal place for those looking to enjoy their golden years. The cost of living in Greece is another draw, as it's generally lower than in many other European countries, allowing retirees to maintain a comfortable lifestyle without breaking the bank.
Moreover, the region has seen improvements in infrastructure and healthcare services, which are crucial for retirees. Access to quality healthcare and modern amenities ensures that retirees can enjoy a worry-free life in the Peloponnese. The combination of these factors is making the area increasingly popular among those looking to retire abroad.
Sources: Trading Economics, Investment Visa
16) Remote workers will flock to mountain villages in the Peloponnese for peace and affordable living
Mountain villages in the Peloponnese are drawing in remote workers thanks to their peaceful settings and affordable living.
Imagine working with a view of lush landscapes and ancient ruins, all while enjoying a lower cost of living. These villages offer a unique blend of Greek culture and modern convenience, making them a hidden gem for digital nomads. The Peloponnese is quickly becoming a favorite for those who want to escape the hustle and bustle of city life.
Key to this trend is the development of infrastructure. Co-working spaces like House by Phaos and Officium in Kalamata are popping up, providing essential amenities for remote work. These spaces are certified by Nomad 365, ensuring they have everything from reliable internet to comfortable workstations.
Living in these mountain villages is not only serene but also budget-friendly. The cost of living here is significantly lower than in urban areas, which is a big draw for remote workers. With improved internet connectivity, these villages offer the perfect balance of tranquility and modernity.
For those curious about the financial aspect, the Work From Kalamata website is a handy resource. It breaks down living expenses, showing just how appealing these areas can be for those looking to stretch their budget while enjoying a high quality of life.
As more people discover the charm of the Peloponnese, these mountain villages are poised to become hotspots for remote work, offering a unique lifestyle that combines work and leisure in a stunning setting.
Sources: Remote People, Work From Greece
17) High-net-worth individuals will keep buying luxury villas with sea views in the Peloponnese
Luxury villas with sea views are drawing high-net-worth individuals to the Peloponnese.
In recent years, the Peloponnese has become a hotspot for those seeking exclusive properties. This surge is fueled by the rising demand for luxury real estate in Greece, especially in coastal areas known for their breathtaking scenery. The allure of the Peloponnese is undeniable, with its stunning landscapes and tourist attractions making it a prime location for luxury living.
Affluent buyers worldwide are on the hunt for second homes that offer not just exclusivity but also the potential for rental income. The Peloponnese, with its captivating sea views, fits this bill perfectly. The region's growing popularity is evident from the increase in tourism, with millions flocking to its shores, signaling a robust demand for high-end accommodations.
Infrastructure developments have significantly boosted the Peloponnese's appeal. The area now boasts enhanced transport and urban infrastructure, making it even more attractive to luxury property buyers. This, coupled with frequent media coverage highlighting the Peloponnese as a luxury destination, further cements its status among affluent individuals.
Moreover, the Peloponnese is often featured in travel and lifestyle publications, showcasing its unique blend of natural beauty and modern amenities. This media spotlight not only enhances its reputation but also attracts a discerning clientele looking for a slice of paradise.
With its combination of scenic beauty, improved infrastructure, and media attention, the Peloponnese is set to remain a top choice for those seeking luxury villas with sea views.
Sources: Von Poll Greece, Enterprise Greece, Inspiring Travel
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.