Authored by the expert who managed and guided the team behind the Greece Property Pack
Yes, the analysis of Thessaloniki's property market is included in our pack
Thessaloniki's residential property market continues its remarkable upward trajectory as we reach mid-2025, with prices showing no signs of slowing down.
The city has become Greece's most dynamic real estate market, recording a 6.33% price increase compared to April 2024, significantly outpacing other major Greek cities. With average prices now standing at €1,970 per square meter and certain districts commanding even higher premiums, Thessaloniki has firmly established itself as a prime investment destination in southeastern Europe.
If you want to go deeper, you can check our pack of documents related to the real estate market in Greece, based on reliable facts and data, not opinions or rumors.
Property prices in Thessaloniki have increased by 6.33% year-over-year as of April 2025, with the average price reaching €2,201 per square meter, marking a historic high for the city.
Central districts and waterfront areas are leading the price surge, with 5% to 7% annual growth projected through 2026, driven by infrastructure improvements, foreign investment through the Golden Visa program, and limited housing supply.
| Metric | Current Value | Trend |
|---|---|---|
| Average Price per sqm | €2,201 | ↑ 6.33% YoY |
| 1-Bedroom Apartment Average | €120,000 | ↑ Rising |
| 12-Month Growth Rate | 12.19% | Highest in Greece |
| 2025-2026 Forecast | 5-7% annually | Continued growth |
| Golden Visa Threshold | €800,000 | Increased from €500,000 |
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
How much have property prices increased in Thessaloniki over the past year?
Property prices in Thessaloniki have surged dramatically over the past 12 months, establishing the city as Greece's hottest real estate market.
As of June 2025, residential properties in Thessaloniki are averaging €2,201 per square meter, representing a 6.33% increase from April 2024. This growth rate significantly outpaces the national average and positions Thessaloniki as the leader among all major Greek cities for price appreciation.
The momentum has been building consistently throughout the year. Thessaloniki recorded a remarkable 12.19% year-over-year increase, the highest growth rate in Greece. To put this in perspective, if you purchased a property for €200,000 in early 2024, it would now be worth approximately €224,000 – a gain of €24,000 in just one year.
Looking at specific property types, one-bedroom apartments now average €120,000, while studio apartments are hovering around €100,000. These prices reflect not just annual growth but a sustained multi-year trend that shows no signs of slowing.
The city has now recorded eight consecutive quarters of positive price appreciation, demonstrating remarkable resilience and consistent demand in the market.
Which neighborhoods in Thessaloniki are experiencing the fastest price growth?
Central districts and waterfront areas are leading Thessaloniki's property price surge, with some neighborhoods seeing exceptional appreciation rates.
The historic center and university-adjacent areas are experiencing the most dramatic increases. Properties in districts like Vardaris, Rotunda, and Toumba are selling within 45-60 days, indicating extremely high demand. These central locations benefit from proximity to amenities, public transport, and the city's cultural attractions.
Waterfront properties have become particularly sought-after. The expansion of Thessaloniki Port, with a EUR 180 million investment in the 6th Pier set to wrap up by 2025, is driving significant appreciation in coastal districts. Areas like Nea Paralia are benefiting from both infrastructure improvements and lifestyle appeal.
Premium residential neighborhoods are also performing strongly:
- Kalamaria: This upscale coastal district continues to attract affluent buyers
- Panorama: Property prices in hillside areas including Panorama have surged by 83.5% from 2019 to 2023
- Charilaou: Average prices hit €2,475 per square meter by November 2024, reflecting strong demand from young professionals
- Ano Poli: Traditional architecture combined with short-term rental potential has made this historic district increasingly desirable
University areas deserve special mention, as they offer strong rental yields and consistent demand from both students and investors. It's something we develop in our Greece property pack.
What are the current average property prices per square meter in June 2025?
Property prices in Thessaloniki vary significantly by district and property type, offering options for different investment strategies and budgets.
The average asking price for residential properties in Thessaloniki reached €2,201 per square meter in April 2025, marking a historic high for the city. However, this average masks considerable variation across different areas and property types.
| District/Property Type | Price per sqm | Notes |
|---|---|---|
| Thessaloniki Municipality (Central) | €2,511 | Highest prices in the region |
| Charilaou | €2,475 | Popular with young professionals |
| City Average | €2,201 | Overall market average |
| Rest of Prefecture | €1,105 | More affordable suburban areas |
| Apartments (median) | €262/sq ft | Approximately €2,820/sqm |
For specific property types, the market shows interesting patterns. One-bedroom apartments average €120,000, making them accessible entry points for first-time buyers and investors. Studio apartments, at around €100,000, offer even more affordable options.
Rental prices provide additional context for investors. The average rental rate stands at €8.29 per square meter per month, translating to approximately €500-700 monthly for a typical one-bedroom apartment in central areas.
These prices reflect Thessaloniki's position as a more affordable alternative to Athens while still offering strong growth potential and rental yields.
How does Thessaloniki's property market forecast look for 2026?
Property market experts predict continued strong growth for Thessaloniki through 2026, though at a slightly moderated pace compared to recent years.
Property prices in Thessaloniki are projected to increase by 5% to 7% over the next 12 months. This would bring the average price per square meter to between €2,310 and €2,355 by early 2026. While this represents a slight cooling from the double-digit growth of recent years, it still significantly outpaces inflation and most other investment options.
Several factors support this optimistic forecast:
| Growth Driver | Impact | Timeline |
|---|---|---|
| Metro Expansion | Up to 30% price increase in served areas | Completed late 2024 |
| Port Development | €180 million investment boosting waterfront values | Completing 2025 |
| Limited New Supply | Continued upward pressure on prices | Ongoing |
| Foreign Investment | Sustained demand despite higher Golden Visa thresholds | Continuing |
| Economic Growth | Greece GDP growth of 2.1-2.3% supporting demand | 2025-2026 |
Districts with metro access, tourism infrastructure, or strong university housing demand—such as Vardaris, Rotunda, and Toumba—are expected to outperform the city average. These areas could see appreciation rates at the higher end of the 5-7% range.
Rental market forecasts are equally positive. Rental prices are expected to increase by 3% to 5%, with one-bedroom units potentially reaching €670/month and renovated two-bedrooms in central districts averaging €850-€900/month.
Long-term projections suggest more moderate but steady growth, with annual appreciation of 3-5% expected beyond 2026 as the market matures.
What impact has the Golden Visa program had on Thessaloniki's property prices?
The Golden Visa program has been a major catalyst for Thessaloniki's property market boom, though recent changes are reshaping its influence.
Foreign investment through the Golden Visa program has been instrumental in driving price growth. Over 112,000 real estate transactions in Greece involved foreign investors in 2023, with Thessaloniki capturing a significant share due to its relative affordability compared to Athens.
However, dramatic changes to the program took effect in 2024. The minimum investment threshold for Thessaloniki increased to €800,000 for a single residential unit of at least 120 square meters, up from the previous €500,000. This represents a 60% increase and places Thessaloniki in the highest investment tier alongside Athens, Mykonos, and Santorini.
Despite these higher barriers, the program continues to attract investors, particularly from China, which accounts for 51.8% of all Golden Visa applications as of October 2024. The impact on the market has been multifaceted:
- Premium properties above €800,000 have seen increased demand as they now qualify for residency
- Properties just below the threshold have become less attractive to foreign investors
- The focus has shifted to larger, luxury properties rather than smaller investment units
- Some investors are exploring the €250,000 option for converting commercial properties to residential use
Market experts believe the higher thresholds will moderate speculative buying while maintaining strong interest from serious investors seeking European residency. It's something we develop in our Greece property pack.
Which property types are seeing the biggest price increases?
Renovated city-center apartments and properties near new infrastructure are experiencing the most dramatic price appreciation in Thessaloniki.
Renovated city-center apartments show the highest price growth and fastest sales turnover, often selling within 45-60 days. These properties appeal to both owner-occupiers seeking modern amenities and investors targeting the lucrative short-term rental market.
Luxury apartments represent another high-growth segment. Demand for luxury apartments rose by 15% in 2024, particularly in premium districts like Kalamaria and the waterfront areas. These properties attract both domestic buyers upgrading their homes and international investors seeking quality assets.
| Property Type | Growth Rate | Key Appeal |
|---|---|---|
| Renovated City Apartments | Highest growth | Modern amenities, rental potential |
| Luxury Apartments | 15% demand increase | Premium locations, investment value |
| Metro-Adjacent Properties | Up to 30% increase | Transport connectivity |
| Waterfront Properties | Significant appreciation | Lifestyle appeal, port development |
| Student Housing | Steady growth | Consistent rental demand |
Properties near the new metro stations deserve special attention. The metro expansion, completed in late 2024, has boosted housing prices by 30% in areas it serves. This infrastructure-driven appreciation pattern is expected to continue as the network expands.
Interestingly, new developments and off-plan properties are also performing well, despite limited supply. The combination of modern construction standards, energy efficiency, and buyer preferences for new homes drives premium pricing.
Short-term rental properties in tourist-friendly areas like Ano Poli and Ladadika continue to attract investor interest, with 3,600 short-term rental listings recorded in 2023.
How do current mortgage rates affect the Thessaloniki property market?
Rising mortgage rates present both challenges and opportunities in Thessaloniki's property market as we navigate through 2025.
The European Central Bank's interest rate policies have pushed mortgage rates higher across Greece. While specific current rates vary by lender and borrower profile, the increased cost of borrowing has begun to influence market dynamics. First-time buyers, in particular, face higher monthly payments, which can limit their purchasing power.
However, several factors are mitigating the impact of higher rates on Thessaloniki's market. The Greek government has introduced support programs, including the "Spiti Mou 2" initiative, which offers discounted mortgage loans for young buyers. Interestingly, this program has had an unintended consequence: properties eligible for the scheme have seen prices increase by approximately 20% due to heightened demand.
The cash buyer segment remains strong, particularly among foreign investors who often purchase without financing. This cash-heavy market provides a floor for prices even as mortgage-dependent buyers face constraints. Additionally, the anticipated stabilization of interest rates in Greece by 2025 could make financing more accessible, potentially unleashing pent-up demand.
For investors, the rental yield story remains compelling despite higher financing costs. With rental rates increasing and yields averaging 4.32% in Thessaloniki, many properties still offer positive cash flow even with mortgage financing.
The market has shown remarkable resilience, suggesting that while mortgage rates are a consideration, they're not deterring serious buyers in this growth market.
What infrastructure projects are driving property values up?
Major infrastructure investments are transforming Thessaloniki's urban landscape and significantly boosting property values across the city.
The metro system stands as the most transformative project. The introduction of the Metro has boosted housing prices by 30% in areas it serves. This isn't just about convenience – it's fundamentally changing how residents navigate the city and which neighborhoods are considered prime locations.
The port expansion represents another game-changer. The EUR 180 million expansion of the 6th Pier at Thessaloniki Port, set to wrap up by 2025, is enhancing the city's commercial importance while driving residential property values in waterfront districts. This project positions Thessaloniki as a major logistics hub for southeastern Europe.
Several other infrastructure improvements are contributing to the property boom:
- Macedonia International Airport modernization, improving international connectivity
- New expressways enhancing regional accessibility
- Urban regeneration projects in historic districts
- Tram line extensions making coastal areas more accessible
- Smart city initiatives improving quality of life
These projects create a multiplier effect on property values. Properties near public transport saw a 4% increase in demand in 2024, demonstrating how infrastructure directly translates to market interest.
The cumulative impact of these improvements is repositioning Thessaloniki from Greece's "second city" to a dynamic European metropolis, with property values reflecting this transformation. Future planned projects suggest this infrastructure-driven appreciation will continue.
How does Thessaloniki compare to Athens property prices in 2025?
Thessaloniki remains significantly more affordable than Athens while offering comparable or even superior growth rates, making it an attractive alternative for investors.
In terms of raw numbers, Thessaloniki offers a clear value proposition. While Athens commands prices of approximately €2,500-2,800 per square meter, Thessaloniki's average of €2,201 represents a discount of roughly 10-20%. This price differential allows investors to acquire larger properties or multiple units for the same capital outlay.
| Metric | Thessaloniki | Athens | Advantage |
|---|---|---|---|
| Average Price/sqm | €2,201 | €2,500-2,800 | Thessaloniki (10-20% cheaper) |
| 12-Month Growth | 12.19% | 7-8% | Thessaloniki (higher growth) |
| 1BR Apartment Rent | €484 | €600-700 | Thessaloniki (more affordable) |
| Golden Visa Threshold | €800,000 | €800,000 | Equal |
| Rental Yield | 4.32% | 4.99% | Athens (slightly higher) |
Perhaps more importantly, Thessaloniki's 6.33% year-over-year growth and 12.19% annual increase significantly outpace Athens' growth rates. This suggests Thessaloniki is in an earlier stage of its growth cycle, offering more upside potential.
The rental market tells a similar story. While Athens commands higher absolute rents, Thessaloniki's lower purchase prices often result in comparable yields. A one-bedroom apartment in Thessaloniki rents for approximately €484 per month versus €600-700 in Athens, but the lower acquisition cost maintains attractive returns.
Both cities now require the same €800,000 Golden Visa investment, effectively putting them on equal footing for international investors. This parity may actually benefit Thessaloniki, as investors can get more property for their money.
Are foreign buyers still interested despite Golden Visa changes?
Foreign investment remains robust in Thessaloniki despite the significant increase in Golden Visa thresholds, though buyer profiles and strategies are evolving.
The numbers speak volumes about continued international interest. As of October 2024, Greece received 12,577 Golden Visa applications, up by 12% from the previous year. While the €800,000 threshold in Thessaloniki has certainly changed the market dynamics, it hasn't dampened overall foreign interest.
Chinese investors continue to dominate, accounting for 51.8% of all applications, followed by Turkish (8.9%), Lebanese, and other Middle Eastern buyers. These investors are adapting to the new requirements in several ways:
- Focusing on premium properties that meet the €800,000 single-property requirement
- Exploring the €250,000 option for converting commercial properties to residential use
- Considering properties in nearby areas outside the €800,000 zone
- Partnering with local developers for new construction projects
The higher threshold has actually attracted a different caliber of investor – those seeking quality assets rather than just the cheapest path to residency. Middle Eastern investors are particularly interested in luxury properties in Thessaloniki for both lifestyle and investment purposes.
Market professionals report that serious investors view the higher thresholds as a positive, potentially reducing speculative buying while maintaining the program's prestige. The shift toward larger, higher-quality properties aligns with Thessaloniki's evolution into a premium European city.
It's something we explore in detail in our Greece property pack.
What are experts saying about Thessaloniki's long-term property outlook?
Real estate experts and market analysts express strong confidence in Thessaloniki's long-term property market prospects, citing fundamental strengths that support continued appreciation.
The consensus among professionals is remarkably positive. 44% of property experts expect further price increases in the near term, while only 9-12% foresee any decline. This optimism is grounded in several structural factors that differentiate Thessaloniki from speculative markets.
Long-term projections paint an encouraging picture. While the explosive growth of recent years will moderate, experts anticipate sustained appreciation of 3-5% annually beyond 2026. This more sustainable pace still significantly outperforms traditional investments while reducing volatility risks.
Key factors supporting the long-term outlook include:
| Factor | Impact | Longevity |
|---|---|---|
| Limited Housing Supply | Continued price pressure | 5-10 years |
| Infrastructure Pipeline | Enhanced city appeal | Ongoing |
| Economic Growth | Rising local purchasing power | Sustained |
| Tourism Expansion | Short-term rental demand | Growing |
| University City Status | Stable rental market | Permanent |
Greece's broader economic recovery provides additional tailwind. With GDP growth projected at 2.1% in 2024 and 2.3% in 2025, the macroeconomic environment supports real estate appreciation. Thessaloniki, as the country's second-largest economic center, stands to benefit disproportionately.
Experts particularly highlight Thessaloniki's transformation from a secondary market to a primary investment destination. The combination of relative affordability, strong yields, and growth potential creates what many describe as a "sweet spot" for property investment in Europe.
Should you buy property in Thessaloniki now or wait?
The data overwhelmingly suggests that waiting could mean missing out on Thessaloniki's continued property appreciation, though individual circumstances should guide timing decisions.
Current market conditions favor immediate action for several reasons. First, with prices projected to increase another 5-7% over the next 12 months, delaying could mean paying €10,000-15,000 more for a typical apartment by next year. The consistent quarterly growth pattern shows no signs of reversal.
Supply constraints add urgency to the decision. Limited new housing developments, particularly in desirable areas, keep competition high among buyers. Properties in prime locations are selling within 45-60 days, leaving little room for hesitation.
For different buyer profiles, the timing considerations vary:
- Investors: With rental yields remaining strong and appreciation continuing, entering now captures both income and growth
- Golden Visa seekers: The €800,000 threshold is unlikely to decrease, making current prices as attractive as they'll be
- End users: Rising rents make buying increasingly sensible versus continuing to rent
- First-time buyers: Government programs like "Spiti Mou 2" won't last forever
The few arguments for waiting – potential interest rate decreases or hoping for a market correction – appear weak against the strong fundamental drivers. Thessaloniki's transformation through infrastructure investment and economic growth suggests prices reflect genuine value creation rather than speculation.
Market timing is notoriously difficult, but Thessaloniki's current trajectory strongly favors action over hesitation for those with the means to invest.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Yes, property prices in Thessaloniki are definitely going up. The data from June 2025 shows the market has reached historic highs, with average prices at €2,201 per square meter after a 6.33% annual increase. This isn't a temporary spike but part of a sustained growth pattern that has seen the city record eight consecutive quarters of appreciation.
The outlook remains strongly positive, with experts forecasting continued growth of 5-7% annually through 2026. Infrastructure developments, limited housing supply, and sustained foreign investment despite higher Golden Visa thresholds all support further price increases. For investors and homebuyers alike, Thessaloniki's property market presents a compelling opportunity in the European real estate landscape.
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.
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Sources
- Indomio - Thessaloniki Real Estate Market Trends 2025
- Properstar - Thessaloniki Housing Prices
- Global Property Guide - Greece Property Market Analysis
- Investropa - Thessaloniki Real Estate Market Statistics
- The Luxury Playbook - Thessaloniki Market Overview
- Investropa - Thessaloniki Property Trends 2025
- Investropa - Thessaloniki Real Estate Forecasts
- Golden Visas - Greek Golden Visa Locations Map
- Get Golden Visa - Greece Golden Visa Guide 2025
- Global Citizen Solutions - Greece Golden Visa Program