Greek Real Estate Market in 2025: Price Growth Amid New Restrictions

Over the past 15 years, housing prices in Greece have increased by only 4.22%, according to Ekathimerini. However, in the last 5 years (2019–2024), prices jumped by 56%, placing Greece 18th globally in property price growth. The European Central Bank now classifies Greece among the most overvalued real estate markets.

By contrast, housing prices rose far more in other regions over 15 years:
- Israel: +150%
- Portugal: +140%
- Germany: +77%
- UK: +65%

Greece remained relatively cheap due to its severe economic crisis between 2010–2015, when housing prices plummeted 45% nationwide and over 50% in Athens and Thessaloniki.

Recovery and Catch-Up Phase

Since 2017, the Greek real estate market has been in a recovery phase. By 2024, prices returned to 2009 levels, and in some urban centers exceeded them. Comparable rebounds were seen in Spain (+17.26%) and Cyprus (+25%) after local downturns.

Global Property Guide ranks Greece 18th in the world for price growth over the last five years (+56%). Meanwhile, the ECB estimates a 20–30% overvaluation, placing Greece alongside Luxembourg, Estonia, and Portugal. However, the European Systemic Risk Board considers financial risks contained due to macroprudential measures.

Demand, Supply Shortage & Foreign Capital

The portal ProtoThema reports that supply shortages, especially in quality housing, continue to drive the market. In 2024, price growth slowed from 10.8% in Q1 to 6.6% in Q4.

Key numbers:
- €2.75B in foreign real estate investment in 2024 (+28.9% YoY)
- 9,381 applications under the Golden Visa program (+11.3% YoY)
- In February 2025, the average price reached €2,543/m² (+1.64% YoY).
- Rental rates rose to €10.05/m²/month (+3.5%).
- Rental yields range from 3.7% to 8.3%, averaging 5%, with top-performing assets being small apartments in tourist zones like Koukaki and Kolonaki.

Policy Changes & Market Cooling Measures

To moderate demand and overheating:
- The minimum Golden Visa investment was raised to €800,000 in Athens, Thessaloniki, Mykonos, and Santorini
- A moratorium on new short-term rental registrations in central Athens (Kolonaki, Koukaki, Pangrati, Exarchia) started January 1, 2025
- From October 1, technical requirements for rentals include windows, daylight, ventilation, and A/C

New tax hikes on short-term rentals:
- High season: €8/day (was €1.5)
- Low season: €2/day (was €0.5)

Outlook for 2025 and Beyond

Experts expect property prices to grow by 3–5% in 2025, especially in Athens, Thessaloniki, and top islands (Mykonos, Santorini). However, growth may slow in 2026 due to new regulations and reduced investor appetite.

The Bank of Greece forecasts moderate price increases in early 2025, particularly in investment and specialized properties, while affordability for middle-income residents may continue to decline.

Key risks:
- Bureaucratic delays
- Regulatory instability
- Lack of a long-term urban development strategy