Yes, the analysis of Thessaloniki's property market is included in our pack
The question of 'the best neighborhood to buy a property in Thessaloniki' does not have a one-size-fits-all answer.
Some of you are buying to live there, while others want to make the best investment possible. Individual preferences and circumstances matter.
That’s why the article below is covering every intent.
At Investropa, when we write a blog post or when we update our our property pack for Greece, we want to bring solutions and cover different aims in a clear and organized way.
Enjoy the read, and please remember that we are not financial or investment experts. This article is for informational purposes only.
To improve the readability and user-friendliness of this article, we will categorize neighborhoods in Thessaloniki into various groups, including budget-friendly options, emerging hotspots, and areas with high rental demand, among others. Consequently, some neighborhoods may appear in multiple categories and be mentioned several times throughout the article.
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How is the real estate market in Thessaloniki?
The real estate market in Thessaloniki, Greece, is currently experiencing a significant surge in interest, particularly from foreign investors.
This is due to a unique combination of factors that make Thessaloniki an attractive location for property investment.
One of the key strengths of Thessaloniki is its rich cultural heritage. The city boasts landmarks that are not found elsewhere, like the White Tower and the Rotunda, which date back to Roman times.
These historic sites, along with the vibrant cultural scene, including festivals and a dynamic arts community, give Thessaloniki a unique charm that you won't find in other cities.
People are drawn to buy in Thessaloniki for various reasons.
The city offers a blend of historical significance and modern living, which appeals to a wide range of buyers.
From families looking for a culturally rich environment to live in, to investors seeking properties with potential for value appreciation, Thessaloniki caters to a diverse demographic.
Foreign interest in Thessaloniki’s real estate is particularly high. This is attributed to the city's strategic location as a gateway between Europe and Asia, its expanding tourism industry, and the relatively affordable property prices compared to other European cities.
Furthermore, the Greek Golden Visa program, which offers residency permits to non-EU investors, has been a significant draw.
Speaking of the real estate market's dynamism, one data point that stands out is the steady increase in property values over the past few years. Despite global economic fluctuations, Thessaloniki has shown resilience, with property prices rising consistently, albeit at a moderate pace.
A unique and positive aspect of properties in Thessaloniki is their architectural blend. The city's real estate portfolio includes a mix of Byzantine, Ottoman, and modern European architectural styles.
This diversity is not only aesthetically pleasing but also adds cultural value to the properties, making them unique investments.
Looking to the future, there are several reasons why properties in Thessaloniki are expected to gain value.
The city is undergoing various urban renewal projects, improving infrastructure and public spaces.
Additionally, Thessaloniki's growing reputation as a tourist and cultural hub is likely to increase demand for both residential and commercial properties. The ongoing development of the Thessaloniki metro system, set to enhance connectivity, is another factor that will likely boost property values.
Top neighborhoods in Thessaloniki to consider for living
Areas in Thessaloniki that are budget-friendly
If you're looking to buy property in Thessaloniki on a budget, there are a few neighborhoods you might want to consider.
Here is a summary table. Below, we will give more details.
| Neighborhood | Average Price per Sqm | Property Types | Resident Demographics | Strengths | Weaknesses |
|---|---|---|---|---|---|
| Evosmos | €800 - €1000 | Apartments, Small Houses | Young Families, Older Residents | Improving Connectivity, Community Facilities | Distance from City Center, Less Nightlife |
| Ampelokipoi | €900 - €1200 | Apartments | Students, Young Professionals, Long-term Residents | Growing Commercial and Social Infrastructure | Ongoing Construction and Development |
| Kordelio | €700 - €900 | Older Apartment Buildings | Working-Class Families, Older Individuals | Strong Community Sense, Urban Redevelopment | Industrial Background, Far from Central Thessaloniki |
Evosmos
This area is known for its affordability primarily due to its distance from the city center, making it less appealing for those seeking the hustle and bustle of central Thessaloniki.
However, the potential for property values to increase is significant, as Evosmos is gradually becoming more connected to the rest of the city through improved transportation options. Typically, you'll find a mix of apartments and small houses in Evosmos.
The average price per square meter in Evosmos is relatively low, often around €800 to €1000. The population is diverse, with a blend of young families and older residents. Strengths of Evosmos include its growing community facilities and increasing accessibility.
However, its distance from central amenities and less vibrant nightlife can be seen as drawbacks.
Ampelokipoi
This neighborhood is more affordable due to its past reputation as a less developed area.
However, it's currently undergoing a transformation, attracting more investments. This rejuvenation hints at a rise in property values in the near future. The area primarily offers apartments in Ampelokipoi, with the average price per square meter hovering between €900 and €1200.
Ampelokipoi is home to a mix of students, young professionals, and long-term residents, creating a dynamic community. Its strengths lie in its growing commercial and social infrastructure, making it more attractive to a broader demographic.
However, ongoing construction and development projects might be a short-term inconvenience.
Kordelio
Known for its industrial past, Kordelio offers some of the most affordable housing options in Thessaloniki.
Its lower costs are partly due to its industrial heritage and distance from the city center. However, with the decline of heavy industry and plans for urban renewal, property values here have a good chance of appreciating. The area predominantly features older apartment buildings, with prices around €700 to €900 per square meter.
Residents are typically working-class families and older individuals. Kordelio’s strengths include its strong sense of community and ongoing efforts towards urban redevelopment.
However, its industrial background and distance from central Thessaloniki are often seen as negatives.
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Areas in Thessaloniki that are popular and upscale
When looking to buy property in Thessaloniki, three neighborhoods stand out as upscale and popular choices. These neighborhoods each have their unique character and draw different types of residents.
| Neighborhood | Average Price per sqm | Property Types | Resident Demographics | Strengths | Weaknesses |
|---|---|---|---|---|---|
| Kalamaria | €2,500 - €3,500 | Apartments, Villas | Affluent Professionals, Families | Sea Views, Exclusivity | Traffic, Limited Parking |
| Panorama | €2,800 - €4,000 | Spacious Homes, Villas | Businesspeople, Celebrities | City Views, Privacy | Distance from Center, Car Dependency |
| Harilaou | €2,200 - €3,000 | Apartments, Luxury Homes | Wealthy Professionals, Families | Accessibility, Vibrant Atmosphere | Cost of Living, Noise |
Kalamaria
Known for its luxurious seaside living, Kalamaria is a top-tier choice for property buyers in Thessaloniki.
It's expensive, owing to its panoramic sea views, proximity to the city center, and upscale amenities. The neighborhood primarily features modern apartments and some exclusive villas.
The average price per sqm in Kalamaria hovers around €2,500 to €3,500. It's inhabited by affluent professionals and families, valuing the tranquility and exclusivity.
The strengths are its scenic beauty and high standard of living, but traffic congestion and limited parking are notable drawbacks. Kalamaria's prestige and desirability are expected to persist, maintaining its status as a sought-after location.
Panorama
Living up to its name, Panorama offers spectacular city views and lush green surroundings.
It's one of the most expensive neighborhoods, with an average price per sqm ranging from €2,800 to €4,000 in expected. The area is known for spacious, high-end homes and villas, catering to the elite. The residents in expected are mainly successful businesspeople and celebrities, drawn by its privacy and exclusivity.
Panorama's strengths include its serene environment and high-quality housing, while its distance from the city center and reliance on car transportation are its weaknesses.
This neighborhood is likely to retain its allure, thanks to its unique combination of luxury and natural beauty.
Harilaou
Harilaou stands out for its blend of urban living and upscale amenities.
The real estate here is pricey, with the average price per sqm around €2,200 to €3,000. The neighborhood offers a mix of stylish apartments and some luxury homes.
It's popular among wealthy professionals and families seeking a balance of city life and comfort. The area's strengths are its accessibility to the city center, vibrant atmosphere, and well-developed infrastructure.
However, the high cost of living and noise levels are potential negatives. Harilaou's appeal is expected to continue, especially among those who prefer a dynamic urban environment.
Make sure you understand the real estate market in Thessaloniki
Don't rush into buying the wrong property in Greece. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
Areas in Thessaloniki that emerge as new hotspots
Let's explore these emerging neighborhoods in Thessaloniki that, according to our local partners and our customers, are getting quite a bit of buzz lately.
| Neighborhood | Average Price per sqm | Property Types | Resident Demographics | Strengths | Weaknesses |
|---|---|---|---|---|---|
| Toumba | €1,500 - €2,200 | Modern Apartments | Students, Young Professionals | Urban Scene, Affordability | Construction, Changing Demographics |
| Ano Poli | €1,800 - €2,500 | Traditional, Modern Mix | Artists, Academics | Cultural Heritage, Community | Accessibility, Parking |
| Depo | €1,400 - €2,000 | Loft-Style Living | Creative, Youthful Demographic | Urban Renewal, Culture | Industrial Past, Development |
Toumba
Once a modest residential area, Toumba is rapidly transforming into a vibrant hub.
Initially known for its affordable housing, recent developments have sparked interest among younger buyers and investors. Its evolution includes modern apartment buildings and commercial growth, making it increasingly trendy.
Prices in Toumba are still relatively lower than upscale areas, averaging €1,500 to €2,200 per sqm. The neighborhood attracts a diverse mix of students, young professionals, and families, drawn by its evolving urban scene and affordability.
The strengths lie in its growing amenities and community feel, while the ongoing construction and changing demographics could be seen as drawbacks. Prices are expected to rise, and Toumba is likely to gain more popularity for its balance of affordability and lifestyle.
Ano Poli (Upper Town)
Ano Poli, with its historical charm, has seen a resurgence of interest.
Initially a quieter, more traditional area, it's now attracting those who appreciate its cultural heritage blended with modern living. The neighborhood has become popular for its unique character, panoramic views, and relatively lower property prices (around €1,800 to €2,500 per sqm).
It appeals to artists, academics, and young professionals looking for a distinctive living experience.
Its strengths include a strong sense of community and historical appeal, while accessibility issues and limited parking are weaknesses. Ano Poli is expected to grow in popularity, particularly among those seeking a blend of history and urban living.
Depo
Depo, a former industrial area, is quickly becoming a trendy spot for property buyers.
Its evolution from an industrial zone to a lively neighborhood with cafes, art spaces, and loft-style living makes it appealing. Property prices in Depo are more affordable than in traditional hotspots, averaging €1,400 to €2,000 per sqm. The area attracts a creative and youthful demographic, including artists, entrepreneurs, and students.
Strengths of Depo include its urban renewal and vibrant cultural scene, while the remnants of its industrial past and ongoing development can be seen as negatives.
With its ongoing transformation, Depo is likely to continue rising in popularity, offering a unique urban experience at a more accessible price point.
Make a profitable investment in Thessaloniki
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Top neighborhoods in Thessaloniki to invest in property
Areas in Thessaloniki with a strong rental demand
If you're considering buying real estate in Thessaloniki for renting it out, these neighborhoods with high demand for rentals should be considered.
| Neighborhood | Tenant Type | Property Type | Average Rental Income | Rental Yield | Tips for Investment | Weaknesses |
|---|---|---|---|---|---|---|
| Ladadika | Young Professionals, Expats | Furnished Apartments | €500-€700/month | 4-6% | Near popular sites | Noise, Competition |
| Kalamaria | Families, Professionals | 3-bedroom Apartments/Houses | €600-€800/month | 3-5% | Near schools, shopping areas | Higher acquisition costs |
| Toumba | Students, Young Professionals | Studios, 1-bedroom Apartments | €300-€450/month | 5-7% | Near university, sports complexes | Seasonal demand |
Ladadika
Ladadika is a vibrant area, popular among tourists and locals alike, making it an ideal spot for rental properties.
The neighborhood's rich history and charming architecture attract a mix of tenants, including young professionals and expats seeking a blend of modern and traditional living. Properties in high demand in Ladadika are furnished apartments with modern amenities.
The average rental income for a two-bedroom apartment in Ladadika can range from €500 to €700 per month, offering a rental yield of around 4-6%. To maximize rental income and minimize vacancy, focus on properties near popular eateries and cultural sites.
However, the area's popularity can also mean higher competition and potential noise issues for tenants.
Kalamaria
This residential suburb is favored by families and working professionals due to its proximity to the sea and essential amenities like schools and shopping areas.
Demand in Kalamaria is for three-bedroom apartments or houses with parking and outdoor spaces. The rental income for such properties averages between €600 to €800 per month in Kalamaria, with a rental yield of approximately 3-5%.
Investing in properties near schools or main shopping streets can ensure consistent tenancy and higher rents.
However, properties in Kalamaria may have higher acquisition costs and the area is less central compared to other neighborhoods.
Toumba
Known for its local sports facilities and university proximity, Toumba attracts students and young professionals.
The rental demand here is for smaller, budget-friendly units like studios or one-bedroom apartments. These can fetch a rental income of €300 to €450 per month in Toumba, with a potential yield of 5-7%.
Properties near the university or sports complexes are likely to have fewer vacancies and attract stable tenants.
The downside is the seasonal nature of rental demand, mainly tied to the academic year, and potential for lower rental income during off-seasons.
Don't lose money on your property in Thessaloniki
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Areas in Thessaloniki where property prices might increase in the future
In these areas in in Thessaloniki you can still find properties at a reasonable price, with room for appreciation as the neighborhoods develop.
| Neighborhood | Tenant Type | Property Type | Average Price Per Night | Tips for Investment | Weaknesses |
|---|---|---|---|---|---|
| Ano Poli | Tourists, Cultural Enthusiasts | Traditional Homes, Apartments | €50-€80/night | Unique features, city views | Hilly terrain, limited parking |
| Nea Paralia | Tourists, Business Travelers | Contemporary Apartments | €60-€100/night | Near beachfront, balconies | Noise, seasonal demand |
| Rotonda | Academic Visitors, Young Travelers | Budget Apartments | €40-€70/night | Near university, cultural sites | Noise, high competition |
Ano Poli
Ano Poli, with its historical significance and panoramic views, is a magnet for short-term visitors.
Tourists and cultural enthusiasts often seek accommodations here. The preferred properties in Ano Poli are traditional homes or modern apartments with a local aesthetic. Amenities like Wi-Fi and proximity to landmarks are highly valued.
The average price per night in Ano Poli can range from €50 to €80. To increase rental income, consider properties with unique architectural features or those offering city views.
However, the hilly terrain may not suit all visitors, and parking can be challenging.
Nea Paralia
This waterfront area is a favorite for short-term stays due to its beach access and vibrant nightlife.
Target tenants in Nea Paralia are tourists and business travelers. Desirable properties are contemporary apartments with sea views and easy access to beachfront cafes and restaurants. Average nightly rates in Nea Paralia are around €60 to €100.
Investing in properties with balconies or those close to the promenade can ensure higher occupancy and rates.
However, the area can be noisy, and off-season demand might drop.
Rotonda
Close to the university and city center, Rotonda is popular among academic visitors and younger travelers.
The area's demand is for budget-friendly, well-located apartments with essential amenities. The average nightly rate in Rotonda is about €40 to €70.
Properties near the university or cultural sites in Rotonda can guarantee consistent short-term rentals.
However, the student population might mean a noisier environment, and competition for rentals can be high during certain times of the year.
Make sure you understand the real estate market in Thessaloniki
Don't rush into buying the wrong property in Greece. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.