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
Where are the best places to invest in Thessaloniki right now? Is the city center still the top pick, or are neighborhoods like Kalamaria, Toumba, and Ano Poli gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with real estate agents, developers, and clients who invest across the city. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in Thessaloniki and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
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1) Ano Poli is attracting interest with its traditional architecture and growing short-term rental demand
Ano Poli in Thessaloniki is catching eyes for its traditional architecture and booming short-term rental market.
With property prices in Thessaloniki climbing, rising by 7.6% in 2023, areas like Ano Poli are becoming hot spots. This district, known for its cultural heritage, is increasingly desirable for both investors and tourists.
Short-term rentals are popping up everywhere, with 3,600 listings in 2023 alone. Thanks to platforms like Airbnb, tourists can easily find a place to stay in Ano Poli, drawn by its rich history and charm.
Thessaloniki's tourism is on the upswing, with overnight stays jumping by 14.75% in 2023. This surge in visitors is fueling the demand for short-term rentals, especially in culturally vibrant areas like Ano Poli.
Real estate agents are buzzing with inquiries about Ano Poli, as interest in this area is growing. The district's appeal lies in its blend of cultural heritage and modern infrastructure, attracting both local and international buyers.
Social media is playing its part too, showcasing Ano Poli's unique charm and attractions. This online exposure is further boosting its popularity, making it a must-visit spot for tourists.
Sources: Study: Actions Needed to Establish Thessaloniki as Top Tourist Destination, Greece's Real Estate Market Analysis & Forecast (2024 - 2025), Top 10 Tourist Nationalities at Thessaloniki’s Hotels in 2023
2) Panorama is gaining interest for its luxury properties and strong appreciation potential in an exclusive hillside setting
Panorama's exclusive hillside setting makes it a prime spot for luxury properties with great appreciation potential.
In Thessaloniki, including Panorama, property prices have surged by 83.5% from 2019 to 2023. This rise is fueled by high demand and limited supply, making Panorama a hotbed for property investment.
In Greece, hillside locations are known for their value appreciation. These areas offer stunning views and a luxurious lifestyle, making them highly desirable. The scarcity of land in such exclusive spots only adds to the demand, driving prices up.
Panorama has been spotlighted by real estate agencies and media as a luxury hotspot, boosting its appeal. This recognition, along with investor testimonials about successful returns, highlights the area's potential for long-term capital growth.
Source: 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) Charilaou is gaining popularity with young professionals for its vibrant community and excellent transport links
Charilaou is quickly becoming a favorite spot for young professionals.
One big reason is the rising property prices, which show just how in-demand this area is. By November 2024, the average price for properties in Charilaou hit €2,475 per square meter. This jump in prices highlights the growing interest among young professionals looking to settle here.
The area is buzzing with new businesses and cafes, adding to its charm. Spots like OSTEN and Pelosof are not just places to grab a bite; they offer a relaxed vibe and high-quality flavors that draw in the younger crowd. This lively scene makes Charilaou a great place to live and hang out.
Transportation improvements in Thessaloniki have also boosted Charilaou's appeal. While specific data for Charilaou isn't available, the city's overall betterment in public transport makes commuting a breeze for young professionals, further enhancing the area's attractiveness.
4) Kalamaria is gaining interest for its high rental yields and scenic waterfront views
Kalamaria is quickly becoming a prime spot for property investors.
In recent years, rental income in Kalamaria has ranged from €600 to €800 monthly, offering rental yields of about 3-5%. This is quite competitive when you compare it to other areas in Thessaloniki.
Why does this matter? Well, rental yield is essentially the cash flow you can expect from your property. A yield of 3-5% is pretty attractive, suggesting a decent return on investment. In hotspots like Ladadika and Kalamaria, yields have even hit 7%, which is a big draw for those chasing high returns.
But numbers aren't everything. Kalamaria's stunning waterfront views and lifestyle are huge selling points. The area offers luxurious seaside living, making it a magnet for affluent professionals and families.
Its appeal doesn't stop at the views. Kalamaria is close to essential amenities like schools and shopping areas, making it a desirable place to live. This naturally boosts demand for rental properties.
Investors are taking note of these factors, seeing Kalamaria as a place where high rental yields meet scenic beauty.
Sources: Global Property Guide, The Luxury Playbook
5) Ladadika is gaining attention for its historic charm and increasing tourist appeal
Ladadika is buzzing with life, thanks to its historic charm and growing tourist appeal.
One of the main reasons for this revival is the restoration of its 19th-century architecture. These projects have turned Ladadika into a magnet for history buffs and culture enthusiasts. Walking through its streets feels like stepping back in time, with beautifully preserved buildings that tell stories of the past.
The area has also transformed into a lively entertainment district. Weekends are especially vibrant, with tavernas, cafes, bars, and clubs filling up with both tourists and locals. This bustling scene makes Ladadika a go-to spot for anyone looking to experience the local nightlife.
New businesses and restaurants, like the popular Taverna 1901, are popping up, adding to the area's dynamic vibe. These places offer diverse dining options and live music, making Ladadika even more appealing. It's not just about the food; it's about the experience.
Travel blogs and guides are raving about Ladadika, marking it as a must-visit destination. Positive reviews are pouring in, and this word-of-mouth is drawing even more visitors eager to explore what the area has to offer.
With its unique blend of history and modern entertainment, Ladadika is capturing the hearts of many. It's a place where the past and present coexist beautifully, offering something for everyone.
Sources: Ladadika's Entertainment District, Travel Guide to Greece
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6) Nea Paralia is gaining attention for its modern developments and prime seaside location
Nea Paralia is buzzing with interest thanks to its modern developments and stunning seaside location.
Thessaloniki is on the rise, with a noticeable uptick in real estate transactions. This is largely due to its growing economic and industrial importance, making areas like Nea Paralia hotspots for investment. The city's transformation is drawing attention, and Nea Paralia is right in the mix.
New projects are popping up everywhere, from residential buildings to commercial spaces. The extension of tram lines and the renovation of historic areas are boosting Thessaloniki's long-term value. These improvements are making Nea Paralia even more attractive, especially for those who love the idea of coastal living.
Nea Paralia's seaside charm is a major draw. People are flocking to the area, eager to enjoy the coastal lifestyle. This influx of interest is not just from locals; renters and buyers from all over are captivated by the allure of living by the sea.
Media coverage is playing a big role in this surge of interest. Articles and reports are shining a spotlight on Nea Paralia's modern developments and seaside appeal, catching the eye of potential buyers and investors. It's not just about the views; it's about being part of a vibrant, growing community.
Thessaloniki's reputation as a major tourist destination is also a boon for Nea Paralia. Visitors who fall in love with the city's cultural life often consider making it their home. This trend is adding to the area's growing popularity, making it a top choice for those looking to invest in property.
Sources: Properstar, Wikipedia - Thessaloniki
7) Sykies is gaining interest for its panoramic city views and potential in property renovation projects
Sykies is turning heads with its breathtaking city views and potential for property makeovers.
In 2023, Thessaloniki saw apartment prices jump by 11.1%, hinting that Sykies might be riding the same wave. This makes it a tempting spot for those eyeing real estate investments. The buzz around Sykies isn't just about the views; it's about the chance to transform properties and add value.
There's been a noticeable uptick in building permits for renovations in Thessaloniki, suggesting a growing interest in property makeovers. The local government is pushing urban development plans, like turning office spaces into homes, which likely includes Sykies. This area is becoming a renovation hotspot, drawing attention from those looking to invest in property upgrades.
The Greek government sweetens the deal with incentives like tax breaks and the Golden Visa program, which are magnets for foreign investors. While Sykies-specific incentives aren't spelled out, these perks generally cover the whole city, making Sykies even more attractive for renovation enthusiasts.
Investors are keen on Sykies not just for its views but for the potential to revamp properties and capitalize on the rising market. The combination of government incentives and urban development plans makes it a prime location for those looking to invest in property transformation.
With the city's plans and incentives in play, Sykies is becoming a go-to spot for property renovation, offering both stunning views and investment potential. The area is buzzing with opportunities for those ready to dive into the real estate market.
Sources: Booking.com, Yamas Real Estate, Next Generation Equity
8) Thermi is booming with new residential projects and its appeal as a suburban retreat
Thermi is booming with new residential projects popping up everywhere.
One big reason for this growth is the increase in building permits, signaling a wave of new homes and businesses. This is a clear sign that Thermi is on the rise, becoming a hotspot for development.
People are flocking to nearby areas like Thessaloniki, and this population surge is driving up the demand for housing in Thermi. As more folks move in, more homes are needed, fueling the construction of new residential projects.
Property values in Thermi are climbing, showing that suburban living is in demand. This makes Thermi a prime choice for those looking to buy a home away from the hustle and bustle of the city.
The local government is also stepping up with plans to improve infrastructure, making Thermi even more appealing as a suburban retreat. These improvements are set to enhance the quality of life and attract even more homebuyers.
With all these factors combined, Thermi is quickly becoming a sought-after location for new homeowners, offering a blend of growth, opportunity, and suburban charm.
Sources: Upsidevelopment Construction Project in Thermi, Greece Population Statistics, GREEN Properties Upcoming Projects
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) Toumba is gaining interest for its affordable housing and closeness to major universities
Toumba is gaining popularity due to its affordable housing options.
People are drawn to Toumba because it offers budget-friendly living, thanks to social and affordable housing policies that support renters. This makes it a great choice for those looking to save on housing costs.
Another big draw is Toumba's proximity to major universities, like the Aristotle University of Thessaloniki. This means students and faculty can enjoy quick commutes, making it a convenient place to call home.
The student population in Toumba is growing, driven by the increasing enrollment at nearby universities. More students mean a higher demand for housing, which is a common trend in university towns.
Living close to a university not only shortens travel time but also creates a vibrant community atmosphere, attracting even more residents. This dynamic environment is a key reason why Toumba is becoming a hotspot.
As the demand for housing rises, Toumba's appeal continues to grow, especially for those seeking a lively and affordable place to live near educational hubs.
Sources: Urbact, E3S Conferences, Urban Institute
10) Valaoritou is gaining attention as a nightlife hub, boosting property values and rental demand
Valaoritou is quickly becoming Thessaloniki's go-to nightlife spot, drawing in crowds and boosting property values.
With its lively atmosphere and pedestrian-friendly streets, Valaoritou is now the epicenter of nightlife in the city. The area is bustling with restaurants and bars, making it a magnet for both locals and tourists.
Property prices in Valaoritou have seen a significant rise of about 7.6% in 2023, echoing the upward trend in Athens. This surge is attracting foreign investors, particularly from Israel, Turkey, and Serbia, who are keen on buying entire floors or buildings for more autonomy.
The short-term rental market is booming here, thanks to high tourist demand. This has led to a noticeable increase in property prices, especially in areas popular with tourists.
Foreign investment and local interest in short-term rentals are making Valaoritou's residential real estate market increasingly appealing for investors.
As Valaoritou cements its status as a nightlife hub, the demand for properties continues to grow, driven by both domestic and international interest.
Sources: Heather on her Travels, The Luxury Playbook, Hellenic Hotels
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.