Authored by the expert who managed and guided the team behind the Greece Property Pack
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What is happening in Thessaloniki’s real estate market? Are prices on the rise or decline? Is the city still attracting foreign investors? How are local government policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers alike, from the bustling city center to the serene coastal areas. Perhaps you’re curious about these trends too.
We know this because we stay closely connected with local experts and individuals like you, exploring the Thessaloniki real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.
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1) Thessaloniki will attract more foreign buyers due to its strategic location and investment potential
Thessaloniki is quickly becoming a hotspot for foreign property buyers due to its strategic location and investment potential.
In recent years, the city has experienced a remarkable rise in property values, with an 83.5% increase in housing prices from Q3 2019 to Q3 2023. This surge even surpasses the growth seen in central Athens, making Thessaloniki an appealing choice for those looking to invest outside the capital.
The short-term rental market is booming too, with listings up by 43%, reflecting a strong demand for urban stays. This trend is bolstered by Greece's "Golden Visa" program, which has attracted substantial foreign investment, with over €1 billion flowing into Greek real estate in just the first half of 2023.
Thessaloniki's position as a gateway to the Balkans and Eastern Europe draws investors from the United States, Israel, Germany, and the United Kingdom. The city's ongoing infrastructure upgrades, like the completion of the Thessaloniki Metro, are further enhancing its appeal, positioning it as a model for holistic urban development.
These improvements are not just about convenience; they are transforming Thessaloniki into a more connected and accessible city, which is a big draw for international buyers. The city's strategic location and these enhancements make it a magnet for global investors looking for promising opportunities.
With its vibrant culture, growing economy, and strategic position, Thessaloniki is set to become a key player in the European real estate market, attracting more foreign buyers who see its potential for growth and development.
Sources: BNB News, GTP News, Grekodom
2) City center rents in Thessaloniki will increase as more students and young professionals move in
Thessaloniki is buzzing with more students than ever, especially at the renowned Aristotle University.
In 2024, rental prices for student housing in Greece jumped by 10%, and Thessaloniki is feeling the heat with a surge in demand for central, affordable places.
Young professionals are flocking to Thessaloniki, drawn by booming sectors like tourism, IT, and renewable energy, which fuels the need for city center housing.
With its vibrant mix of students and professionals, Thessaloniki's city center is becoming a hotspot, pushing rents higher as everyone wants to be in the heart of the action.
As more students and young professionals move in, the city center's rental market is tightening, making it a competitive space for housing.
Thessaloniki's appeal is undeniable, and with its growing population, the demand for central housing is only set to rise.
Sources: EduRank, Spitogatos, Portico and Bridge
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) Balkan investors will increasingly seek to diversify their portfolios, boosting interest in real estate
Interest from Balkan investors in diversifying their portfolios is on the rise due to several compelling reasons.
One of the main drivers is the increasing property prices in the Balkans, which are pushing investors to seek more stable markets. Take Thessaloniki, for instance, where residential property prices have jumped by 7.6% from 2018 to 2023. This makes it a hot spot for those looking for stability in their investments.
Economic growth in the Balkans has also led to more disposable income for investments. The European Bank for Reconstruction and Development (EBRD) has been a key player here, investing over €8.7 billion in Serbia. This has bolstered the private sector and fueled economic growth, encouraging investors to look beyond their local markets.
Financial advisors in the region are increasingly recommending diversification strategies to manage risks, including venturing into international real estate markets. This advice is in line with the growing trend of cross-border real estate transactions involving Balkan investors, showing a keen interest in international opportunities.
Surveys highlight a rising interest in international real estate among Balkan investors, driven by factors like better infrastructure and urban renewal projects in countries such as Greece. These developments make international markets more appealing.
Sources: EBRD, The Luxury Playbook
4) Thessaloniki will see rising demand for smaller, accessible homes due to an aging population
The aging population in Thessaloniki is driving up the demand for smaller, more accessible homes.
In 2023, 23.48% of Greece's population was aged 65 and above, and this number is steadily increasing. As people get older, they often look for homes that better suit their changing needs. Thessaloniki is no exception, with many older residents seeking out properties that are easier to manage.
With life expectancy in Greece projected to hit 83.10 years by 2025, the need for senior-friendly housing is becoming more urgent. Many older adults prefer smaller homes because they are easier to maintain and come with lower living expenses. This trend is likely to be reflected in Thessaloniki, aligning with broader preferences observed across Greece.
Mobility issues are common among the elderly, which increases the demand for accessible housing. In Thessaloniki, many public spaces have already adapted to these needs with features like ramps and elevators. This trend is mirrored in urban housing developments, where single-story homes and buildings with elevators are becoming more popular as the population ages.
In Thessaloniki, single-story homes and buildings with elevators are becoming more popular as the population ages. This shift is not just about convenience; it's a necessity for many who face mobility challenges. The city is adapting, and so are its housing options.
As the population ages, the demand for smaller, more accessible homes will continue to rise. This is not just a trend but a reflection of the changing demographics and needs of Thessaloniki's residents.
Sources: Eurostat, Macrotrends, Greece Travel Secrets, Trading Economics
5) Thessaloniki’s property prices will rise moderately due to limited supply and increasing demand
In Thessaloniki, residential property prices have been climbing steadily, with a peak in November 2024 at €2,159 per square meter.
The Greece Golden Visa Program has been a magnet for foreign investors, keeping the demand for properties high. Even though the investment threshold went up in 2024, the program still draws a lot of interest in Thessaloniki's real estate scene.
There's a shortage of new housing developments because of regulatory hurdles, which means fewer properties are available. This scarcity, along with more people wanting to live in the city, has pushed demand and prices up.
Urbanization trends are making city living more popular, adding to the demand for homes in Thessaloniki. With limited supply, this has naturally led to higher property prices.
Investors are eyeing Thessaloniki as a promising market, thanks to these dynamics. The combination of limited supply and growing demand is a key factor in the moderate price increase.
For those considering buying property in Thessaloniki, understanding these trends can be crucial. The market is shaped by a mix of regulatory constraints and urban preferences, making it a unique investment opportunity.
Sources: Indomio, Immigrant Invest, NTL Trust
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6) Middle Eastern investors will target luxury properties in Thessaloniki for lifestyle and investment reasons
Middle Eastern investors are eyeing luxury properties in Thessaloniki for lifestyle and investment.
Thessaloniki's waterfront areas are seeing a boom, with property prices jumping by 83.5% from 2019 to 2023, outpacing even central Athens. This surge is drawing attention from those looking for high-end real estate opportunities.
The Greek government's Golden Visa program is a big attraction, offering residency to non-EU buyers who invest in real estate. In 2023, this program helped bring in €2.13 billion in foreign direct investment into Greek real estate, making it a hot spot for international investors, including those from the Middle East.
Thessaloniki is not just about numbers; it's a vibrant city with ambitious plans. By the end of 2024, 13 new metro stations will enhance connectivity, making the city even more appealing to tourists and investors alike. This development is part of the city's strategy to boost its allure as a luxury destination.
Luxury real estate agencies are increasingly targeting Middle Eastern clients, indicating a growing market for high-end properties. These agencies are tailoring their offerings to meet the specific needs and preferences of Middle Eastern investors, further solidifying Thessaloniki's position as a prime location for luxury real estate.
With its mix of rising property values, favorable investment conditions, and urban development, Thessaloniki is becoming a top choice for those seeking luxury and investment opportunities in Greece.
Sources: Flight Connections, GTP News, Money Tourism
7) Thessaloniki’s luxury property prices will rise significantly as high-net-worth individuals seek exclusive locations
Thessaloniki is quickly becoming a prime spot for luxury property investments.
Thanks to the Greek Golden Visa program, high-net-worth individuals are flocking to the area, investing heavily in the local real estate market. In 2023 alone, foreign buyers poured around €3 billion into Greek properties, significantly boosting demand for luxury homes.
The Greek Residence by Investment program offers flexibility, allowing investors to choose from various real estate options, such as direct property purchases or investments in real estate companies. This adaptability has attracted a diverse group of wealthy investors to Thessaloniki.
Waterfront properties in Thessaloniki have seen a dramatic price surge, with an 83.5% increase from Q3 2019 to Q3 2023. This rise even outpaced central Athens, highlighting the strong demand and potential for high returns. By November 2024, the average price for residential properties in Thessaloniki reached €2,159 per square meter, with the highest asking prices in the Thessaloniki Municipality.
The limited availability of new homes in Thessaloniki is another factor driving up property prices. Strict regulations and land constraints make it challenging to build new properties, leading to a scarcity that increases demand. Additionally, international buyers from countries like the United States, Israel, Germany, and the United Kingdom have shown strong interest in Thessaloniki's real estate market, further boosting demand.
With its unique blend of historical charm and modern amenities, Thessaloniki offers a lifestyle that appeals to affluent buyers. The city's vibrant culture, excellent dining options, and proximity to beautiful beaches make it an attractive destination for those seeking a luxurious lifestyle.
Sources: Nomad Capitalist, Indomio
8) Property values in Nea Paralia will increase as it transforms into a cultural and recreational hub
The Nea Paralia area in Thessaloniki is on the brink of a property value surge as it evolves into a cultural and recreational hotspot.
Thanks to increased investment in cultural and recreational infrastructure, Nea Paralia is becoming a vibrant destination. The waterfront revitalization project is transforming the city's 8.5 km waterfront into a lively mix of leisure, sports, and commerce, all connected by parks, green spaces, bikeways, and pedestrian paths.
Visitor numbers are climbing, especially during events like the Dimitria Festival, which draws crowds each October and November. This festival, along with other cultural happenings, is boosting interest in Nea Paralia. The city government, in collaboration with the World Bank Group and a consulting firm, is crafting a strategic plan to make the area more livable, productive, and attractive.
Thessaloniki's reputation as Greece's cultural capital is often highlighted in the media, further enhancing Nea Paralia's appeal. This attention, coupled with a general trend of rising property prices in Thessaloniki's waterfront areas, is driving demand. For instance, property prices in these areas have surged by 83.5% from Q3 2019 to Q3 2023.
New businesses like cafes, restaurants, and shops are expected to open in Nea Paralia, drawn by the waterfront's revitalization and cultural infrastructure. Improved public transport, such as tram line extensions, is making the area more accessible. Real estate reports predict a rise in Thessaloniki's property prices by 2025, with Nea Paralia benefiting from its strategic location and ongoing developments.
Sources: World Bank, Nanotexnology
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) Virtual property tours will increasingly attract international buyers
Virtual property tours are on the rise, especially catching the eye of international buyers.
In recent years, the virtual tour software market has been booming, with predictions that it will hit $941.3 million by 2030. This surge is largely due to real estate agencies, like those in Thessaloniki, embracing this technology to better showcase homes.
In 2023 and 2024, homes with virtual tours got 87% more views than those without. Buyers spent 5-10 times longer on these sites, making them more likely to book a showing. Younger buyers, aged 18 to 34, were 130% more inclined to schedule a visit if a virtual tour was available.
Thanks to advancements in virtual reality, these tours are now more immersive. Features like interactive hotspots and the ability to "look" out the windows give a real feel of the property's surroundings, making it easier for international buyers to get a sense of the neighborhood.
With more real estate platforms offering virtual tours, it's becoming simpler for buyers from abroad to explore properties without leaving their homes. This trend is reshaping how people shop for homes, making it more convenient and engaging.
Sources: Fortune Business Insights, Vivestia, PhotoUp
10) New tax incentives will increase property investor interest in Thessaloniki's real estate market
Thessaloniki's real estate market is booming, especially in waterfront areas.
From 2019 to 2023, property prices in these areas have skyrocketed by 83.5%, showing just how much people want to buy here. Foreign investors from places like the United States, Israel, Germany, and the United Kingdom are particularly keen on these properties. A big reason for this interest is the Golden Visa program, which brought in €3 billion in Greek real estate investments in 2023.
The Greek government is sweetening the deal with new tax incentives. One standout is the ‘Renovate-Rent’ program, which offers subsidies for renovation expenses and a three-year rental tax exemption for long-term leases. This makes investing in Thessaloniki even more attractive.
Thessaloniki's charm isn't just about its properties. The city is strategically located and has exciting urban redevelopment projects in the pipeline. By the end of 2024, 13 new metro stations will be completed, improving connectivity and making the city even more appealing to investors.
Media outlets are buzzing about Thessaloniki's potential. The combination of its strategic location, urban development, and government incentives is creating a perfect storm for real estate growth. Investors are taking note, and the city's market is expected to keep climbing.
With these developments, Thessaloniki is not just a place to live but a smart investment choice. The new tax incentives are set to draw even more interest, making it a hotspot for property investors.
Sources: Tovima, Esales International, Global Citizen Solutions
11) Updated property tax laws will impact buying decisions in Thessaloniki
In Thessaloniki, changes in property tax laws can greatly impact buying decisions.
When property taxes rise, the cost of owning a home increases, which can scare off potential buyers. People in Thessaloniki are known to be quite sensitive to these tax changes. Even a small hike in tax rates can make buyers rethink their plans, either by delaying their purchase or pushing for a lower price. Real estate experts often point out this sensitivity as a major factor in the local market.
Looking at other Greek cities like Athens, we see that tax changes can lead to big market shifts. For instance, when VAT on real estate transactions was suspended in 2024, there was a noticeable boost in new building permits. This shows that tax incentives can really get the market moving, and Thessaloniki could see similar effects if such changes occur.
Real estate agencies often hear from buyers who are worried about property taxes. These concerns are a clear sign of how tax laws can sway buying decisions. The feedback from these inquiries gives us a good look at what potential buyers are thinking and feeling, showing the direct impact of tax changes on the market.
In Thessaloniki, property tax laws are a hot topic among potential buyers. Many are keenly aware of how these laws affect their purchasing power. This awareness means that any change in tax policy is likely to have immediate effects on buyer behavior, making it a crucial element in the decision-making process.
Understanding the local market dynamics, real estate professionals keep a close eye on tax legislation. They know that even minor adjustments can lead to significant shifts in buyer interest and activity. This vigilance helps them advise clients effectively, ensuring that buyers are well-informed about how tax changes might affect their investment.
Sources: To Vima, Chambers Practice Guides, Global Citizen Solutions
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12) Young professionals in Thessaloniki will boost demand for modern apartments in lively neighborhoods
Young professionals are flocking to Thessaloniki, sparking a demand for modern apartments in lively areas.
Thanks to initiatives like the "together" program, over 300 young professionals have already relocated to Thessaloniki. This trend highlights the city's appeal for job and networking opportunities. Thessaloniki's growing tech and startup scene is a magnet for young talent, offering a vibrant ecosystem and numerous professional empowerment activities.
Real estate reports reveal that property prices in Thessaloniki rose by about 7.6% in 2023. This uptick points to a strong demand for rental properties, especially modern apartments in bustling neighborhoods. Young professionals are drawn to urban living with modern amenities and a vibrant community vibe. The city's urban revitalization projects are enhancing the quality of life, making Thessaloniki even more attractive.
The rise of co-working spaces and remote work-friendly environments in Thessaloniki aligns perfectly with the lifestyle preferences of young professionals. They are keen on modern amenities and the professional opportunities the city offers.
Thessaloniki's transformation into a hub for young professionals is evident in its dynamic neighborhoods and thriving real estate market. The city's efforts to revitalize urban areas and support the tech scene are paying off, attracting a new wave of residents.
As more young professionals move in, the demand for modern apartments in vibrant neighborhoods is set to grow, reshaping Thessaloniki's real estate landscape.
Sources: Among.gr, The Luxury Playbook
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.