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
Why is Thessaloniki emerging as a prime destination for property investment in 2025? Is it the attractive rental returns, the vibrant cultural scene, or the competitive pricing compared to other European cities? What makes it a compelling choice for investors?
We often encounter these questions because we are actively engaged with local developers, real estate professionals, and investors like you. Given the growing interest in this market, we've decided to compile our insights into a comprehensive article for everyone's benefit.
Our aim is to present a clear case for investing in Thessaloniki's real estate market, drawing from our firsthand experience and deep market understanding.
If you feel we've overlooked an important aspect or wish to learn more, please reach out to us (we respond very quickly). Your feedback enhances the quality of our content.
Finally, please remember that this is not financial or investment advice. Real estate investment involves inherent risks, and market conditions can change unexpectedly. We strongly recommend conducting thorough research and consulting with a qualified financial advisor before making any investment decisions.
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1) Thessaloniki is close to stunning beaches, making it ideal for vacation home buyers
Thessaloniki is a hotspot for vacation home buyers, thanks to its close proximity to stunning beaches like those in Halkidiki.
In 2023, Thessaloniki saw a 14.75% increase in overnight stays compared to the previous year, showing that more people are discovering its charm, including the nearby coastal areas. This uptick in tourism is driving up the demand for vacation homes.
Short-term rentals are booming, with 3,600 properties available in Thessaloniki in 2023. Platforms like Airbnb are thriving as tourists flock to stay near these beautiful beaches.
Infrastructure improvements, such as the new Thessaloniki Metro, are making it easier for tourists to reach beach destinations, adding to the allure of owning a vacation home here.
These developments are not just about convenience; they are transforming Thessaloniki into a more accessible and attractive destination for both tourists and property investors.
With its blend of urban life and beachside relaxation, Thessaloniki offers a unique lifestyle that is increasingly appealing to vacation home buyers.
Sources: The Luxury Playbook, GTP News, Tranio, GTP News
2) Thessaloniki’s urban renewal projects are boosting neighborhood appeal and property values
The city's ongoing urban regeneration projects are revitalizing neighborhoods and increasing property values.
Thessaloniki is buzzing with change, thanks to significant government investment in infrastructure. Projects like the Thessaloniki Metro and the renewal of the city’s bus fleet are not just about better transport; they're about transforming the city into a modern hub. These efforts are making life more convenient and attractive for residents and potential buyers alike.
With these improvements, property prices in Thessaloniki have jumped. In 2023, residential property prices rose by around 7.6%. This isn't just a local phenomenon; it's a trend seen in other major cities like Athens, where urban living is becoming increasingly desirable.
The demand for housing in these newly revitalized areas is soaring. People are drawn to the charm of modern, renovated apartments, and this surge in interest is a testament to the success of urban regeneration. It's clear that these projects are making neighborhoods more appealing and boosting property values.
For those considering buying property in Thessaloniki, now might be the perfect time. The city's transformation is ongoing, and investing in these areas could be a smart move as the value continues to rise. The blend of improved infrastructure and urban charm is hard to resist.
As Thessaloniki continues to evolve, the city's landscape is changing for the better. These urban regeneration projects are not just about aesthetics; they're about creating a vibrant, livable city that attracts both locals and newcomers. The future looks bright for property investors here.
Sources: GTP News, 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.
3) Thessaloniki’s location as a Europe-Asia gateway makes it ideal for international investment
Thessaloniki's strategic location as a gateway between Europe and Asia has significantly enhanced its appeal for international investors. In 2023, the city benefited from a substantial portion of the 5 billion euros in Foreign Direct Investment (FDI) that flowed into Greece, highlighting strong international interest in the region. This trend continued from 2022, where there was a notable 57% growth in FDI projects, particularly in knowledge-based activities with high added value.
The Port of Thessaloniki plays a crucial role in international trade, serving as a major hub for commerce between Europe and Asia. Although specific data on the port's growth isn't provided, its strategic location makes it an attractive point for trade, facilitating connections with neighboring countries and beyond. This is further supported by the expansion of Thessaloniki International Airport, which introduced new flight routes, such as the direct flight to Amsterdam in 2024, enhancing connectivity with major European destinations.
Government initiatives to promote Thessaloniki as a business hub, along with strategic infrastructure projects aimed at improving connectivity with neighboring countries, have also contributed to its appeal. These efforts likely include enhancing the city's infrastructure and business environment, making it more attractive to international investors. Additionally, the rising number of multinational companies establishing offices in Thessaloniki underscores the city's central position between Europe and Asia, making it an ideal location for expanding operations in both regions.
Sources: Standard Bank TradeClub, GTP, AEGEAN Group
4) Thessaloniki’s conference scene makes it easy to rent out your property short-term
Thessaloniki has become a bustling hub for international conferences and exhibitions, hosting numerous events like the Thessaloniki International Fair and the Philoxenia-Hotelia exhibition. These events draw visitors from around the world, significantly boosting the city's profile as a key conference destination.
The influx of international trade visitors, as seen with a 57% increase during the Philoxenia-Hotelia exhibition, highlights the strong demand for accommodation. This demand is particularly evident in the short-term rental market, which saw a 43% increase in urban centers like Thessaloniki in 2024.
Property owners in Thessaloniki report higher occupancy rates during major events, indicating that conferences and exhibitions directly contribute to the demand for short-term rentals. The modest 5% rise in revenue per available rental further underscores the healthy growth in this sector.
Sources: Greek City Times, HELEXPO
5) With better public transport, more neighborhoods in Thessaloniki are becoming accessible and attractive
In recent years, Thessaloniki has seen significant improvements in its public transportation system, making more neighborhoods accessible and attractive. The Greek government has committed to a major overhaul of the city's transportation network, including the introduction of 110 new electric buses and the development of a new metro system, which began in November 2024.
The Thessaloniki metro, set to operate by the end of 2024, features a 9.6 km main line with 13 stations, and a 5-station extension to Kalamaria planned for late 2025. This extension will increase the metro's reach to 14.5 km, serving approximately 315,000 passengers daily. The metro's increased frequency, running every 2.5 minutes on the main line and every 1.5 minutes once the extension is operational, enhances the reliability and attractiveness of public transport.
Additionally, the Thessaloniki Urban Transport Organization (OASTH) has reorganized bus lines to reduce traffic in the city center and around metro stations, facilitating seamless operation between buses and the metro. This reorganization is part of a broader plan to improve connectivity and reduce travel times, making neighborhoods more appealing to residents and businesses.
Sources: GTP News, Solomon Realtors, Argophilia
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6) Thessaloniki is attracting digital nomads with its growing number of co-working spaces and flexible living options
Thessaloniki is quickly becoming a favorite spot for digital nomads, thanks to its booming number of co-working spaces.
In recent years, the city has seen a surge in these spaces, with at least 10 notable ones like Regus, i4G PRO, and Coho. This growth reflects a rising demand for flexible work arrangements, which is exactly what digital nomads crave. The city's vibrant atmosphere and affordable living costs make it an ideal choice for those seeking a balance between work and leisure.
Surveys highlight Thessaloniki as a top pick for digital nomads. A survey by Georgaki Law Firm showed a massive 5850% increase in people choosing Greece as a destination between 2021 and 2022. Members of Nomad List have given Thessaloniki a perfect score, indicating that the city is not just popular but also highly recommended by those who have experienced it. The city's rich history and cultural diversity add to its charm, making it a unique place to live and work.
The local government is actively promoting Thessaloniki as a digital nomad hub. Their initiatives, likely including marketing campaigns and business-friendly policies, have made the city even more appealing to remote workers. The city's excellent internet connectivity and welcoming community further enhance its attractiveness.
Digital nomads rave about Thessaloniki's climate and lifestyle. The city's mild weather and vibrant social scene offer a perfect backdrop for remote work. With a variety of cafes, restaurants, and cultural events, there's always something to do after a day of work.
Thessaloniki's increasing number of co-working spaces is drawing digital nomads seeking flexible living arrangements. The city's strategic location in Europe also makes it a convenient base for exploring other parts of the continent.
Sources: Coworker.com, Georgaki Law Firm
7) Thessaloniki's growing retail sector boosts job creation and housing demand nearby
Thessaloniki's retail sector has been on the rise, creating more job opportunities. In 2023, the retail trade turnover increased by 7.0% compared to 2022, showing a boost in economic activity and potential job growth.
Major brands like ZARA and H&M have moved to the city center, keeping areas like Tsimiski Street vibrant with new retail developments. This influx of businesses not only brings more jobs but also attracts people to live nearby, increasing the demand for housing.
Real estate agents have noticed a growing interest in properties near these bustling retail areas. People are drawn to the convenience of living close to work and amenities, which further fuels the housing market.
Sources: Hellenic Statistical Authority, Ered.gr
8) Thessaloniki’s diverse architecture gives you unique investment options in historic properties
Thessaloniki's diverse architectural styles offer unique investment opportunities in historic properties for several reasons.
Firstly, property values in historic districts have been rising. In 2023, residential property prices in central Thessaloniki increased by around 7.6%, with areas like Ladadika and Kalamaria experiencing significant price hikes due to their historical charm. This trend indicates a strong market for properties with unique architectural styles.
Additionally, there is increased demand for character-rich properties driven by a surge in cultural and heritage tourism. Buyers are showing more interest in historic homes, attracted by the city's rich architectural heritage, including many UNESCO World Heritage Sites.
Moreover, government incentives like the Golden Visa program and support for restoring historic buildings enhance the appeal of investing in these properties. Successful urban revitalization projects in neighborhoods such as Rotunda and Tsimiski further demonstrate the profitability of renovating historic properties.
Sources: The Luxury Playbook, ArchDaily, The Luxury Playbook
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.
9) Thessaloniki’s mild climate is perfect if you’re retired and looking for a place to live
Thessaloniki's mild Mediterranean climate makes it a top choice for retirees looking to buy property.
With an average annual temperature of 16°C, Thessaloniki offers a comfortable climate compared to many other European cities. Even in January, the city stays relatively warm, with temperatures around 8.3°C, which is quite pleasant for winter.
Retirees love the Mediterranean climate for its mild winters and warm summers, perfect for enjoying outdoor activities year-round. Thessaloniki is no exception, boasting plenty of sunshine, which is great for those who crave sunny days.
Living in a place with a mild climate like Thessaloniki can have a positive impact on health, especially for older adults. The combination of mild winters and warm summers contributes to a healthier lifestyle, making it an attractive option for retirees.
Thessaloniki's weather not only enhances the quality of life but also supports better health outcomes. The city's climate is known to be beneficial for retirees, offering a comfortable and healthy environment.
For those considering a move, Thessaloniki's climate is a major draw, providing a perfect balance of warmth and comfort throughout the year.
Sources: Weather and Climate, Expat Focus
10) Eco-conscious investors are drawn to Thessaloniki's focus on sustainability
Thessaloniki is becoming a hotspot for eco-conscious investors due to its strong commitment to sustainability.
The city is making waves with its green building initiatives, boasting numerous projects that have achieved high standards like LEED Platinum. This reflects Thessaloniki's dedication to environmentally friendly construction, making it an attractive option for those looking to invest in sustainable real estate.
Thessaloniki is also pouring resources into renewable energy, with over 65 million euros invested to enhance its environmental footprint. This substantial investment highlights the city's focus on sustainable energy solutions, drawing attention from investors who prioritize eco-friendly practices.
Major players like HELLENiQ ENERGY are getting involved, committing over 1 billion euros to sustainable development. This significant financial backing underscores the city's commitment to sustainability and further attracts eco-conscious investors.
Despite challenges, Thessaloniki is working hard to increase urban green spaces. Initiatives like the Garden City concept aim to boost green space availability, which is crucial for a sustainable urban environment. These efforts are supported by local policies that promote energy efficiency, such as replacing biomass heating systems with cleaner alternatives.
Sources: Ekdoseis Kerkyra, HELLENiQ ENERGY, University of Hannover
11) Thessaloniki is attracting young professionals because it’s becoming a tech and innovation hub
Thessaloniki is becoming a hotspot for young professionals, thanks to its growing reputation as a tech and innovation hub.
This transformation is fueled by a wave of tech startups like AidPlex, CAPTAIN Coach, and Cyclopt, which have emerged from the Aristotle University of Thessaloniki. These companies showcase the city's potential for innovation and are attracting talent from across the globe.
The Greek government is also playing a crucial role with initiatives like the Thessaloniki Innovation & Technology Center (Thess INTEC). These efforts aim to boost collaboration between public and private sectors, creating more job opportunities in tech and making the city even more appealing to tech professionals.
Thessaloniki is also seeing a rise in coworking spaces and innovation hubs, such as OKThess and coho - the coworking home. These spaces offer a supportive environment for startups and tech professionals, further enhancing the city's allure. The real estate market is responding with increased demand for housing, especially in areas favored by young professionals.
With the influx of tech talent, Thessaloniki is experiencing a vibrant shift. The city's tech scene is not just attracting local interest but also drawing international attention, making it a dynamic place to live and work.
Sources: The Recursive, Coworking Spaces, The Luxury Playbook
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12) Thessaloniki offers attractive property deals thanks to local government incentives for foreign investors
The local government's incentives for foreign investors have made property purchases in Thessaloniki more attractive for several reasons. First, the Greek government has introduced tax breaks specifically for property purchases by foreign investors. These tax incentives reduce the overall cost of buying property, making it a more appealing investment opportunity.
Additionally, the Golden Visa program has been a significant driver of foreign investment. This program grants residency to non-EU nationals who invest in Greek real estate, and in 2023, it saw a record-breaking number of applications. This influx of foreign capital has funneled substantial funds into the Greek real estate market, including Thessaloniki.
The government has also streamlined the property purchase process for non-residents. By simplifying legal procedures and reducing bureaucratic hurdles, it has become easier for foreign buyers to invest in Thessaloniki. This regulatory support has contributed to the city's growing appeal as a real estate investment destination.
Sources: CEIC Data, Trading Economics, PwC Tax Summaries
13) In Thessaloniki, you can find affordable properties with high appreciation potential compared to other European cities
Thessaloniki's property market has shown a promising trend over the past few years, with property prices steadily increasing. In 2024, the average price per square meter reached €2,159, marking a significant rise from the previous year. This upward trend indicates a strong potential for future appreciation.
Compared to other major European cities, Thessaloniki offers more affordable property prices. With an average of €2,352 per square meter, it is about 10% cheaper than Athens. This affordability provides a lower entry point for investors, making it an attractive option for those looking to enter the market.
Additionally, Thessaloniki's rental yields are quite competitive, with returns in popular areas like Ladadika and Kalamaria reaching up to 7%. This is higher than the yields in Athens and Crete, which range from 4% to 7%. Such strong rental income potential further enhances the city's appeal to investors.
Sources: HouseNix, Indomio, The Luxury Playbook
14) Thessaloniki's major universities mean you'll always find demand for student housing
Thessaloniki's major universities create a bustling market for student housing.
With 92,090 students enrolled at Aristotle University of Thessaloniki in 2024, there's a huge need for places to stay. The city is alive with students, and this constant influx keeps the housing market buzzing.
Student accommodations in Thessaloniki are almost always full, with occupancy rates hitting nearly 100% every year. This means if you're thinking of investing in property here, you're looking at a market where demand is consistently high.
Rental prices for student housing range from €180 to €340 for studios. Even with these competitive prices, students are eager to pay for the convenience of being close to their universities and the perks of off-campus living.
Long waiting lists for student accommodations further emphasize the strong demand. This is a clear sign that investing in student housing could be a smart move.
Thessaloniki's vibrant student life and the presence of major universities ensure a steady stream of potential tenants, making it an attractive option for property buyers.
Sources: EduRank, HVS, University World News
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.