Greece Real Estate Market Overview

04/30/2025

International Outlook

Greece’s real estate market continues its post-crisis ascent into 2024 and 2025, fueled by a resilient economy, robust tourism, and sustained investor demand. Property values have been climbing across the country, from bustling city centers to idyllic islands, albeit with some recent cooling in growth rates. Both domestic buyers and foreign investors are actively purchasing assets – ranging from urban apartments and offices to luxury villas and short-term rentals – drawn by Greece’s improving fundamentals and unique lifestyle appeal. In this analysis, we examine the latest economic trends, pricing in EUR and USD, rental yields, legal and tax changes, infrastructure developments, and emerging submarkets (Athens, Thessaloniki, Mykonos, Santorini, Crete, Peloponnese) shaping the Greek real estate landscape.

Economic Trends and Key Indicators

The macroeconomic backdrop in Greece has markedly improved, creating a solid foundation for real estate growth. After the strong post-pandemic rebound, GDP expanded by about 2.3% in 2023 and is on track for a similar pace in 2024 – outpacing the euro area average. In October 2023, Greece achieved a milestone by regaining an investment-grade credit rating (“BBB-”), reflecting restored fiscal health and investor confidence. Unemployment has fallen to single digits (around 9–10%, the lowest in over a decade), while inflation has eased to roughly 3% in 2024 after peaking above 9% in 2022. These positive trends, alongside steady wage growth and EU recovery fund inflows, are bolstering domestic buying power.

Tourism Boom: Greece’s vital tourism sector hit record highs – over 36 million arrivals in 2023 (up from 30 million in 2022), contributing about 13% of GDP (Ekathimerini). 2024 is on pace to set another record, highlighting a post-COVID travel boom. This has spurred demand for hotels and short-term rentals, especially in island destinations.
Foreign Investment: Improved stability and reforms are attracting international capital. Greece is benefiting from EU-funded infrastructure projects and a rebound in foreign direct investment. Notably, the country’s return to investment-grade status has lowered borrowing costs and should further stimulate real estate development and investment financing.
Interest Rates: In line with global trends, borrowing costs rose in 2022–2023 due to European Central Bank hikes. Mortgage rates for Greek buyers climbed, tempering some local demand. However, as inflation pressures eased, the ECB began modest rate cuts in late 2024, providing relief. Greek mortgage rates are gradually stabilizing, and combined with banks’ healthier lending practices, credit availability for real estate is improving.

Property Prices and Rental Yields

Residential property values have been on a multi-year upswing. Q4 2024 capped the 7th straight year of rising home prices, though the pace moderated. According to the Bank of Greece, urban house prices were up about 7–8% year-on-year in late 2024, a cooldown from double-digit growth earlier in 2023. For instance, Athens saw a +7.7% annual increase by Q3 2024, while Thessaloniki – which had lagged in previous years – led with around +12% annual growth (Global Property Guide). On a quarterly basis, price growth has slowed to around 1–2% per quarter, indicating a stabilization as the market absorbs higher interest rates and past gains.

This steady appreciation has brought property values significantly higher than their post-crisis lows. The average Greek home price nationwide reached approximately €270,000 (around $293,000 USD) as of late 2024 (The Luxury Playbook). In coveted areas, prices are substantially higher. In Athens’s upscale coastal suburb of Vouliagmeni – part of the “Athenian Riviera” – asking prices now average about €7,216 per m² (roughly $7,800/m²), the highest in Greece (Ekathimerini). Other top-tier locales include central Athens enclaves (like Kolonaki), the northern suburbs (e.g. Psychiko, Kifissia), and island hotspots (the Cyclades). By contrast, many rural mainland areas remain far more affordable, though even smaller cities are seeing price upticks amid spillover demand.

Rental yields in Greece are moderate by global standards, but can be attractive given low deposit rates and recovering rents. Gross rental yields on residential properties average around 4.5%–5% annually in major cities (Global Property Guide). Smaller apartments tend to generate higher yields: in central Athens, one-bedroom units in tourist-friendly districts can yield 6–8%, whereas larger luxury flats might yield closer to 3–4%. Across Athens, the city-wide average yield was about 4.9% in late 2024, while Thessaloniki’s average stood near 4.3%. Secondary cities often offer slightly higher yields (around 5%) due to lower entry prices – for example, Heraklion in Crete or Patras in the Peloponnese see averages just above 5%.

Rental market trends: After a prolonged slump in the 2010s, residential rents are finally rising again. Nationwide asking rents rose ~5–6% year-on-year in 2024, the fastest growth in over a decade (Ekathimerini). This follows a period from 2010 to 2020 where Greek rents actually fell nearly 20% in real terms amid economic crisis – a unique case in the EU. The tide turned as strong employment gains and limited new housing supply pushed rents upward. By Q3 2024, the rent price index was up ~4.6% year-on-year. In Athens, a typical two-bedroom apartment now rents for €600–€1,600 per month (depending on neighborhood), while a similar flat in Thessaloniki might fetch €500–€700. Despite these increases, housing remains relatively affordable for renters; the price-to-rent ratio in Athens is about 21 (years), indicating it is often cheaper to rent than to buy in the current market.

Commercial Real Estate and Investment Assets

Greece’s commercial real estate sector – spanning offices, retail, logistics, and hotels – is experiencing steady growth alongside the broader recovery. Investor focus remains primarily on prime assets in Athens and key tourist markets. According to industry analysts, commercial property investment in Greece is projected to expand at a modest but positive rate of ~0.5% annually through 2029 (Ekathimerini). While this growth rate is not explosive, it reflects a sustained upward trend after a long period of underinvestment.

Office space: Demand for quality office buildings has risen on the back of economic growth and business expansion. Prime office prices climbed about +6% in 2023 nationwide, and another ~2.3% in the first half of 2024, per Bank of Greece data. Athens leads the office market – in the capital’s central business districts, office values have surged by nearly 40–50% since 2019 as companies upgrade to modern spaces (Ekathimerini). Prime office rents in Athens average €20–€25/m² per month, and vacancy rates for Grade A space are low, especially in popular areas like Syntagma and Kifissias Avenue. Notably, “green” and energy-efficient office buildings command a premium; there is a growing trend toward sustainable, smart offices incorporating advanced technologies for climate control and security. Older, less efficient office stock, meanwhile, faces the prospect of obsolescence or conversion if it cannot meet modern tenant expectations.

Retail and logistics: Retail real estate is rebounding as consumer spending and tourism recover. High-street shop rents in Athens (e.g. Ermou Street) and Thessaloniki have risen, and prime retail property values saw a ~4.8% increase in early 2024 (Bank of Greece). Shopping center footfall is improving, though e-commerce growth also drives demand for distribution centers. The industrial/logistics segment is a quiet outperformer: with Greece’s strategic location as a trade gateway, warehouse and logistics facility prices have jumped (up 30–50% in Athens regions since 2019) (Ekathimerini). Major port areas like Piraeus and Thessaloniki, and highway-connected hubs around Attica, are seeing new logistics developments to serve regional supply chains. Yields on prime logistics assets have compressed into the 7–8% range, making them attractive compared to other European markets.

Hospitality properties: The hotel sector is thriving on record tourism. Investment in hotels, resorts, and short-term rental portfolios is robust. International hotel brands and investors have targeted Greece for expansion, leading to numerous acquisitions and renovations of city hotels in Athens/Thessaloniki and resort properties on the islands. With occupancy and daily rates hitting new highs in 2023–2024, many hospitality assets are generating healthy returns. Prime hotel yields are around 6–7%. At the same time, the boom is driving development: high-profile projects like the revival of the historic Hilton Athens as “Conrad” and new luxury resorts in destinations such as Mykonos, Santorini, Crete and the Peloponnese (e.g. the ongoing expansion at Costa Navarino) are adding inventory, often at the high end of the market.

Investment funds and REITs: Greece’s improving prospects have drawn in more institutional players. Greek REITs (known locally as AEEAPs) and foreign private equity firms are actively acquiring commercial assets. 2018 was the first year Greece surpassed €1 billion in real estate FDI, and the trend continues. Yields on prime offices in Athens, still in the 5.5%–6.5% range, offer a favorable spread over many Western European cities – though as Greek yields have compressed and global rates have risen, that arbitrage is narrowing. Still, the combination of relatively high yields and capital appreciation potential keeps Greece on the radar of investors from the US, Europe, Israel, and the Middle East. The focus remains on core assets (office, retail, hotel) in established locations, as well as development opportunities to create modern stock in a supply-constrained market.

Tourism Real Estate and Short-Term Rentals

The surge in tourism has had a profound impact on the property market, especially in popular tourist destinations and city centers. Investors large and small have flocked to purchase vacation homes and urban apartments to capitalize on the lucrative short-term rental market (Airbnb, VRBO, etc.). In Athens, entire downtown districts like Koukaki (near the Acropolis) and Kolonaki have seen many apartments converted to Airbnb use, targeting year-round city-break visitors. On the islands, from Mykonos to Santorini to Crete, villas and traditional homes are being rented to tourists for premium nightly rates in peak season.

Yields and demand: Holiday rental yields can significantly exceed traditional long-term rents, especially in high-demand summer weeks. Many owners in Mykonos or Santorini report double-digit annual rental returns (before expenses) thanks to nightly rates that can top €500 for a villa in peak season. Even in Athens, a well-located short-term rental apartment can gross far more per month than a long-term lease, by catering to tourists and digital nomads. In 2024, the vacation rental supply expanded ~13% while guest nights rose ~6%, indicating strong demand but also increasing competition (Investropa). Average occupancy for short-term rentals across the Greek islands hovered around 75% in summer 2024 – just slightly down from the previous year’s record, as new listings entered the market. Crete actually saw a small uptick in occupancy, demonstrating that certain regions can absorb more supply if demand keeps growing.

Market impact: The proliferation of Airbnb-style rentals has contributed to property price growth in tourist-favored areas, as investors bid up prices. It’s a key reason the Cycladic islands and Athens historic center have outperformed in values. However, there are growing concerns about housing affordability for locals and the strain on infrastructure from overtourism. On Mykonos and Santorini, for example, year-round residents have faced skyrocketing rents and limited housing supply as landlords prefer lucrative short-term guests. Similar trends are evident in central Athens, where young local renters struggle to find affordable apartments.

Regulatory response: In late 2023, the Greek government began introducing measures to regulate the short-term rental sector amid the housing crunch. Effective January 2025, Athens imposed a one-year ban on new short-term rental registrations in several central districts (including Kolonaki, Koukaki, Exarchia, and Pangrati) to stem the loss of residential units to Airbnb. Additionally, a new nationwide framework will require all short-term rental hosts to register and comply with tax rules, and imposes an accommodation fee of €1.50 per booking for those renting out 1–2 properties (with stricter treatment if renting 3 or more properties as a business). Officials are also considering limits on rental days per year and stricter safety codes for tourist accommodations. These policies aim to balance the economic benefits of platforms like Airbnb with the need to maintain long-term housing and community stability.

It’s clear that tourism rental assets will remain a key part of the Greek real estate mix, but investors need to navigate the evolving rules. Many professional operators are shifting towards properly licensed tourist residences and villa rentals that comply with hospitality laws. In parallel, there is a push to extend the tourist season beyond the summer peak – something that could improve year-round occupancy for rental properties, especially in warmer regions like Crete or Rhodes. Overall, the short-term rental sector in Greece is maturing: while still very profitable, it is gradually becoming more regulated and integrated into Greece’s long-term tourism strategy.

Legal and Tax Considerations for Investors

The Greek government has implemented various legal and tax measures in recent years to encourage real estate investment while addressing social issues like housing affordability. Here are some key considerations:

Property purchase costs: Buying property in Greece incurs a one-time transfer tax of 3% (3.09% including municipal surcharge) on the property’s taxable value for most resale properties. Notably, the government extended a temporary suspension of VAT (24%) on new construction sales through 2024, meaning most new residential purchases also only pay the 3% transfer tax. This policy was intended to stimulate development by avoiding a hefty VAT for buyers.
Annual property taxes: Owners pay an annual Unified Property Tax (ENFIA). ENFIA rates vary based on property value and size, but recent reforms have reduced this burden. Since 2019, ENFIA rates were cut by 10–30% for most households (Global Property Guide), and payment installments were increased (up to 10 interest-free monthly payments) to ease cash flow. These tax cuts were aimed at reversing earlier steep hikes during the financial crisis. As a result, holding costs for property in Greece are now relatively low compared to many other EU countries.
Rental income tax: Rental income is subject to Greek income tax on a progressive scale. Currently, individuals pay 15% on annual rental income up to €12,000; 35% on €12,001–€35,000; and 45% on amounts above €35,000. There are allowable deductions (e.g. for certain expenses or depreciation) but Greece does not have a blanket “standard deduction” for rental income, so investors should account for these taxes when calculating net yields. To incentivize long-term leasing, a new policy (effective late 2024) even introduced a temporary 3-year tax exemption on income from residential leases to tenants (not short-term rentals), in hopes of nudging more owners to offer properties for local housing.
Capital gains tax: Notably, Greece currently does not impose a capital gains tax (CGT) on the sale of real estate by individuals, due to a suspension that has been repeatedly extended. While a 15% CGT law exists on paper, it has been on hold through 2024. This means that, for now, property sellers (who have held their property for a reasonable period) typically keep any capital appreciation tax-free, which is a significant benefit for investors. However, buyers do pay a small tax on purchase (as noted above), and developers pay VAT on construction costs.
Legal framework: Greece allows full foreign ownership of real estate for EU and non-EU nationals, with only a few restrictions in border regions for non-EU buyers (e.g. near national frontiers or some islands of strategic importance, where special permission may be required). Title is secured through a notary system and land registry. Most transactions are in cash or via Greek banks; overseas buyers should be aware of anti-money laundering compliance, needing to show funds origin. It’s recommended to use a local attorney for due diligence, as liens or historical claims can exist on older properties. Overall, the buying process in Greece is straightforward and typically completes in 4–8 weeks, but can extend if bureaucratic checks (like forestry or archaeology clearances in certain locales) are involved.

Investors should keep an eye on evolving policies. The government has been actively adjusting taxes and regulations to manage the rapid changes in the real estate market – from incentivizing affordable housing development to tightening short-term rental rules. Generally, the trajectory has been towards a more investor-friendly tax regime (lower property taxes, CGT suspension) coupled with targeted measures to ensure investments benefit the broader economy.

Golden Visa Policy Changes and Impact

One of the biggest drivers of foreign investment in Greek real estate over the past decade has been the Golden Visa program. Launched in 2013, this scheme grants a 5-year residency permit (renewable) to non-EU nationals who invest in Greek property above a certain value. The program proved immensely popular, particularly with investors from China, Turkey, Russia, the Middle East, and more recently the US and Canada. By 2023, Greece had issued over 11,800 Golden Visas to main investors, bringing in more than €2.9 billion of foreign direct investment into real estate (Investropa). This influx of capital helped revive property markets in Athens and on the islands during the post-crisis years, and many credit the Golden Visa with accelerating price growth in prime areas.

However, amid concerns about housing affordability and an overheated market in certain locales, Greek authorities recently enacted major changes to the Golden Visa rules. As of 2023–2024, the minimum investment thresholds have increased substantially:

In popular, high-demand locations – namely the greater Athens region (Attica), Thessaloniki, and the islands of Mykonos and Santorini (as well as a few other highly touristic islands) – the minimum real estate investment required jumped from the previous €250,000 to €500,000 (effective August 2023), and then further to €800,000 in 2024 (Balkan Insight). These drastic increases target the areas where Golden Visa buyers were thought to be driving up prices the most.
In the rest of Greece (all other regions not mentioned above), the minimum investment has been set at €400,000 (up from €250,000 previously). This applies to most of the mainland and less densely populated islands, aiming to channel investment outside the big cities and tourist hotspots.
Importantly, the law now requires that the investment be made in a single property (not a portfolio of cheaper properties) and that the property have a minimum size of 120 square meters. This prevents investors from buying multiple small apartments to meet the threshold; they must invest in a higher-value, larger asset. There are exceptions allowing investment in a single development project (even if comprised of multiple units) as long as the total meets the threshold.

The government’s rationale for these changes is to mitigate the Golden Visa program’s impact on local housing costs while still encouraging foreign investment in a more balanced way. By raising the bar, Greece hopes to reduce speculative buying of lower-priced homes in Athens and Santorini that squeezed out local buyers, and instead attract more high-net-worth investors whose capital can spur upscale developments or projects in varied regions. A finance ministry press release in 2024 explicitly stated the goal was to “increase the supply of long-term rental housing and address the Golden Visa’s impact on housing costs, while maintaining incentives for investment” in the property market.

Impact on the market: In the short term, the announcement of higher Golden Visa thresholds prompted a rush of foreign buyers in late 2022 and 2023 to lock in purchases under the older €250k rules – particularly Chinese investors, who historically account for over half of all Greek Golden Visas. This caused a surge in transactions in Athens and Thessaloniki before the deadline. Now, with the new €500k–€800k rules in place, industry reports suggest a slowdown in Golden Visa applications for those prime areas, as expected. There is a growing backlog of pending applications from 2024 (over 9,000 applications were submitted in 2024, many just before the hike) (IMI Daily). Over time, we may see Golden Visa demand shift to regions like the Peloponnese, Crete, or other islands where €400k can still buy a substantial property, or focus on luxury properties in Athens for those who can afford €800k. Developers in eligible areas are already marketing €400k new-build apartments in suburbs and vacation zones to appeal to the new criteria.

Notably, Greece’s tightening comes as other European Golden Visa programs are being restricted or closed (e.g. Portugal ended its Golden Visa for housing in 2023). Greece’s program remains open, but now targets a more exclusive segment. In the long run, this policy change could moderate price growth in the entry-level luxury segment of Athens and tourist islands, and perhaps spur investment in secondary markets. For foreign investors still keen on Greece, the country’s residency-by-investment option is still one of the most accessible in the EU, just at a higher price point. Those investing at the new thresholds are often looking not just for a residency permit, but also for high-end assets (villas, commercial properties, boutique hotels) that can generate income or long-term appreciation.

Regional Real Estate Highlights: Mainland vs. Islands

Greece is a diverse country, and real estate trends vary widely across different regions. Below we spotlight key submarkets on the mainland and islands that have been top performers or show notable emerging trends:

Athens & Attica

The Athens metropolitan area is the largest and most liquid real estate market in Greece. It has been a focal point of the recovery, with broad-based growth across residential and commercial sectors. In recent years, central Athens neighborhoods (such as Plaka, Koukaki, Kypseli) have gentrified significantly, propelled by short-term rental demand and urban revival projects. Property prices in the Municipality of Athens have risen by over 30% since 2018 on average. Upscale districts like Kolonaki and Filothei are highly sought after by affluent buyers and expatriates, commanding prices well above €5,000/m². Meanwhile, working-class areas that were hit hard during the crisis – for example Kypseli or Metaxourgeio – have seen young buyers and investors return, renovating old apartments for both own-use and Airbnb, driving double-digit annual price gains in some of these locales.

The coastal Attica region – known as the Athenian Riviera – stands out as Greece’s priciest residential enclave. Suburbs like Glyfada, Voula, Vouliagmeni, and Elliniko offer beachfront living and have attracted international interest. The average home price in Glyfada and Voula is around €4,000–€5,000/m², and higher in Vouliagmeni (as noted, ~€7,200/m²). This area’s rise is buoyed by luxury developments and infrastructure upgrades, particularly the landmark Hellinikon Project. The Hellinikon urban regeneration – Europe’s largest, on the site of Athens’ old airport – is underway, slated to deliver parks, a marina, shopping malls, office complexes, and thousands of new residences along the coast. By August 2024, the project had pre-sold nearly €800 million in property (from seaside villas to high-rise condos) even as construction continues. This megaproject is transforming the surrounding areas (Alimos, Elliniko, Glyfada), sending land values soaring in anticipation of new amenities and a prestigious “city within a city”.

In northern Attica, suburbs like Kifissia, Maroussi, Psychiko, and Chalandri remain highly valued for their greenery and family-friendly environment. Prices there range generally from €2,500 to €4,500 per m². Maroussi, as a business hub with several corporate headquarters, also has a strong office market. The completion of new metro Line 4 (under construction) in coming years will better connect central Athens to suburbs like Maroussi, Galatsi, and Vyronas, likely boosting real estate in those areas. Furthermore, Piraeus – Athens’ port city – is an emerging submarket: massive Chinese investment in the Port of Piraeus and improved transport links (new metro extension opened in 2022) have spurred interest in Piraeus real estate. Piraeus even entered the top-five most expensive Greek areas for renting in late 2024 (Ekathimerini), reflecting its growing popularity among professionals and students.

Market outlook for Athens: The capital’s real estate market looks set for continued, if more gradual, growth. Supply remains constrained – building permits in Attica, while rising, are still below pre-2010 levels. Thus, competition for quality properties is high. Foreign buyers (from Europe, Middle East, China, and the Greek diaspora) are very active in Athens, often targeting apartments for €250k–€500k in central areas or coastal homes €500k+. With Golden Visa minimums now higher in Athens, some speculative demand may cool, but the city’s fundamentals (economic activity, universities, tourism, culture) ensure steady underlying demand. We expect Athens to remain a “seller’s market” in prime locations, with price growth in the mid-single digits annually, and rental yields around 4–5%. Investors are advised to watch for the impact of new regulations (like Airbnb limits) on specific neighborhoods. Overall, Athens offers a blend of high-end opportunities and up-and-coming districts with value potential, making it a top choice for real estate investment in Greece.

Thessaloniki & Northern Greece

Thessaloniki, Greece’s second-largest city and the economic heart of the north, has been experiencing a renaissance of its own. After years of stagnation, Thessaloniki’s housing market has accelerated – in fact, it led the country in price growth recently, with annual gains above 12% through much of 2023–2024. Despite this, Thessaloniki remains significantly more affordable than Athens; apartments in good areas can often be found for €1,500–€2,500 per m². The city’s seaside promenade and historical charm are draws for both locals and some foreign buyers (notably diaspora Greeks and investors from neighboring Balkan countries). Popular districts include Analipsi, Toumba, Kalamaria, and the city center around the White Tower. Kalamaria, a coastal suburb, offers a mix of urban living and sea views and has seen robust demand, pushing prices up.

A major catalyst for Thessaloniki’s real estate is the long-awaited completion of the Thessaloniki Metro. After almost two decades of delays due to archaeological finds and technical challenges, the first line of the metro opened in November 2024, transforming urban mobility. Neighborhoods with metro stations (like Voulgari, 25 Martiou, Syntrivani) have already seen upticks in property interest, anticipating easier commutes. This new infrastructure, alongside the city’s expanding port (the Thessaloniki port is being upgraded and privatized to become a key trade hub for the Balkans), bodes well for both residential and commercial real estate. Office and logistics development around Thessaloniki is picking up, with more firms using the city as a gateway to Southeast Europe.

Elsewhere in Northern Greece, certain areas are emerging due to tourism and cross-border investment. The Halkidiki peninsula (south of Thessaloniki) is a prime example – famous for its beaches and resorts, Halkidiki has high demand for holiday homes. So much so that rental prices there remain elevated even off-season, thanks to vacation rentals. Other northern cities like Kavala and Larissa have seen moderate growth, often tied to local economic projects (e.g. Kavala is tapping into energy sector developments). Additionally, the northern border regions see some interest from Balkan investors; for instance, buyers from countries like Bulgaria, Serbia, and Romania often purchase inexpensive homes or cottages in Northern Greece for holidays or future retirement, attracted by the climate and EU stability.

Market outlook for Thessaloniki & North: Thessaloniki is on an upswing that should continue in the medium term. The combination of improved infrastructure, relatively low pricing, and growing tourism (the city has become a year-round city-break destination for Israelis, Turks, and Europeans) provides momentum. We anticipate further price growth of ~5% annually in Thessaloniki’s prime areas, with potential for higher if foreign investor interest increases. Rental yields in Thessaloniki (around 4% currently) may rise if property values stay low relative to rents – already the city’s rents have climbed as young professionals and students compete for housing. The northern Greece region more broadly will likely see localized growth: tourist spots (Halkidiki, Pieria), and any city benefitting from big projects (for instance, Alexandroupoli, where a new gas terminal and port upgrades are planned, could see a real estate uptick). Overall, Northern Greece offers value opportunities – it’s one of the best-value parts of the country – and the gap between Thessaloniki and Athens prices suggests room for convergence as the economy strengthens.

Mykonos & Santorini (Cyclades Islands)

Mykonos and Santorini are the crown jewels of the Aegean, synonymous with Greek luxury tourism, and their property markets reflect that prestige. These islands boast some of the highest real estate prices in all of Greece. From whitewashed cliffside homes overlooking Santorini’s caldera to chic Mykonos villas with infinity pools, the real estate is oriented toward the high-end segment and international buyers.

Mykonos: Often dubbed the “St. Tropez of Greece,” Mykonos has ultra-prime property values. Wealthy buyers from around the globe (shipowners, celebrities, tech entrepreneurs) have snapped up villas here. It’s not uncommon for luxury estates in Mykonos to sell for €5–€10 million (or more), especially those with direct waterfront or panoramic views of the Aegean. Even smaller holiday homes on Mykonos can command €8,000+ per m² prices, rivaling central London or Paris in cost. The rental yields, however, can justify the investment for some – at peak season, nightly rental rates for a Mykonos villa can run into thousands of euros. Mykonos Town properties, including commercial spaces (for shops or restaurants), are also extremely expensive due to limited supply in the small Cycladic architecture town. The island’s popularity for luxury tourism means demand stays strong, but the local government is grappling with issues of infrastructure (water, electricity, waste systems) stretched by seasonal crowds.

Santorini: Famed for its breathtaking caldera and sunsets, Santorini’s real estate is also highly priced, though generally a notch below Mykonos. The most coveted properties are the caldera-facing cave houses and villas in villages like Oia, Imerovigli, and Firostefani. These often sell for over €1 million for relatively compact homes (many of which are run as boutique hotels or Airbnb rentals). Santorini sees strong rental occupancy from April through October, with honeymooners and tour groups ensuring that any property with a caldera view can generate substantial income. However, Santorini’s geography (a volcanic rim) means developable land is very limited, so most transactions are renovations or repurposing of existing structures. Inland villages and the flat side of the island (e.g. Kamari, Pyrgos) are more affordable and have seen some new construction, but prices there too have risen as spillover from the caldera side – offering perhaps more value for mid-range investors who cannot enter the Oia market.

Trends: Both Mykonos and Santorini have benefited enormously from the Golden Visa program in the past; many Chinese and other foreign investors bought apartments or small hotels here to reach the €250k threshold (buying multiple cheaper units). With the threshold now a sky-high €800k on these islands, the typical Golden Visa buyer is effectively priced out. Thus, future demand will likely be dominated by lifestyle buyers and ultra-high-net-worth individuals less concerned with residency. There’s also a pivot toward more sustainable tourism – Santorini, for example, has discussed limiting daily cruise ship visitors to manage crowds, which could indirectly affect commercial real estate (fewer tourist footfalls in peak times). The luxury segment on these islands remains robust, but any global economic wobble can have an outsized effect since the buyer pool is niche.

Market outlook for Mykonos & Santorini: Expect these islands to remain outliers in pricing. The rate of price growth may moderate because values are already very high and the Golden Visa changes remove some investment-driven demand. Nonetheless, scarcity will support prices: there’s virtually no “new” land to build on in the scenic parts of these islands, so any available property is a hot commodity. We foresee continued interest from international luxury buyers, especially from the Middle East, US, and Northern Europe, who view these properties as both investments and trophy assets. Rental returns will continue to be strong but could plateau if tourist numbers are capped for sustainability. Investors in Mykonos and Santorini should be mindful of the regulatory environment (for example, local authorities have started cracking down on unlicensed rentals and overbuilding). Overall, these islands remain blue-chip real estate markets in Greece – high risk and high reward, with a heavy lifestyle component driving value.

Crete

Crete, Greece’s largest island, offers a vast and varied real estate landscape. Unlike the boutique Cyclades, Crete has multiple cities, extensive rural areas, and a year-round economy (including agriculture and industry) alongside tourism. This diversity means real estate opportunities range from city apartments and suburban homes to seaside villas and countryside cottages.

Chania & Heraklion: The two main cities – Chania in the west and Heraklion in central Crete – anchor much of the property market. Chania has become one of Greece’s most desirable smaller cities to live in, thanks to its beautiful Venetian harbor, well-preserved old town, and nearby beaches. It entered the top five most expensive areas nationally for home-buying in late 2024, reflecting how in-demand it’s become. Asking prices in Chania now average around €2,500–€3,000/m² in the center (higher for restored historic houses). Many foreigners (British, German, Scandinavian, American) have bought retirement or holiday homes in and around Chania, lending an international vibe. Heraklion, the administrative capital of Crete, has a more workaday real estate profile – prices are a bit lower than Chania (around €1,800–€2,500/m² in the city), and demand is driven by local families and businesses. Heraklion’s rental market is strong due to the large student population (the University of Crete and other colleges) and the city’s role as a commercial hub. Both cities have seen price growth in the high single digits annually as Crete’s economy thrives.

Resort areas: Beyond the cities, Crete has numerous resort zones that attract buyers. The Apokoronas region east of Chania (villages like Kalyves, Almyrida) is a hotspot for expatriates buying villas with sea views of Souda Bay – many Brits in particular have formed communities there. The Rethymno area, roughly between Chania and Heraklion, is also popular for its mix of charming town and beach proximity. On the eastern side, Agios Nikolaos and Elounda are known for high-end resorts (Elounda hosts some of Greece’s most exclusive resort hotels and villas, where celebs vacation). Property in Elounda’s hills can fetch millions, driven by those luxury estates and the privacy they offer.

Crete’s size means infrastructure investments are crucial. The island is getting a brand new international airport at Kasteli (near Heraklion), slated to be one of Greece’s most modern airports when it opens later this decade. This will boost Heraklion’s connectivity and could stimulate more development on the eastern side of Crete. Additionally, there’s ongoing expansion of highways to improve the drive along the north coast. These improvements will likely make more parts of Crete accessible and attractive. Already, Crete is pushing to become a “12-month destination” – the government and tourism bodies are encouraging year-round travel (with activities like agro-tourism, winter retreats in mountain villages, etc.), which would stabilize occupancy for hotels and rentals beyond summer.

Market outlook for Crete: Crete presents one of the best-balanced property markets in Greece. It hasn’t overheated as much as Athens or Mykonos, so prices, while rising, are still reasonable in many areas. We expect steady growth, perhaps in the 5% per year range for prime locales. Coastal properties in western Crete will continue to appreciate as international remote workers and retirees seek Mediterranean homes (Crete offers a bit more infrastructure and size than small islands, making long-term living easier). Rental yields in Crete are quite healthy – a holiday villa can yield 5–7% annually, and urban rentals in Heraklion or Chania around 4–5%. With the new airport and tourism initiatives, Crete’s real estate could see a further boost mid-decade. The only overhang might be if too many new developments spring up; currently, building is measured, but a rush of new construction could temper price growth. As of now, Crete strikes a good balance for investors looking for both lifestyle and returns.

Peloponnese

The Peloponnese peninsula (southern mainland Greece) is a region of growing interest, offering everything from luxury enclaves to affordable rural retreats. Historically, the Peloponnese was less on foreign buyers’ radar than the islands, but that is changing thanks to improved infrastructure and a few headline-grabbing developments.

Argolis & the “Greek Riviera”: In the eastern Peloponnese, the Argolic coast has emerged as an upscale destination. The area around Porto Heli and Ermioni (often dubbed the “Greek Riviera”) is known for its wealthy homeowners – including international jet-setters and Greek tycoons who have estates there. The presence of the ultra-luxurious Amanzoe resort and villas has put Porto Heli on the map. Properties in this area are priced accordingly; a seafront villa can easily cost several million euros. Nearby, the island of Spetses (just off the coast, accessible by water-taxi) adds to the area’s allure. Despite the high end nature, Argolis still has quieter towns like Nafplio – a picturesque historic town that was Greece’s first capital. Nafplio’s beautifully preserved old town and fortress views have attracted many Athenians to buy second homes there (it’s only a 1.5-2 hour drive from Athens). Nafplio’s market is brisk, with many boutique guesthouses and apartments in restored neoclassical buildings.

Messenia (Costa Navarino): The southwest Peloponnese, specifically Messenia, has been put on the luxury map by the Costa Navarino project. Costa Navarino is a vast high-end resort complex developed by the shipping magnate Captain Vassilis Constantakopoulos. It features luxury hotels, golf courses, and residential communities (branded golf-front villas and apartments). This development has essentially created a new luxury market where one scarcely existed – the nearby town of Pylos and the city of Kalamata have seen a ripple effect of interest. Wealthy Europeans (especially golfers and those drawn to the unspoiled nature of the area) have purchased properties in Navarino or nearby. Prices for the branded residences in Costa Navarino are on par with Athenian Riviera prices (well into the millions for a villa). Kalamata, the regional capital with an airport, offers a more budget-friendly market – apartments there might go for €1,200–€1,800/m² and the city is up-and-coming (it has a lively seafront and is known for its olives and gastronomy). Significantly, new highways (such as the fully modern Olympia Odos and Moreas motorways) have cut drive times: Athens to Kalamata now under 3 hours, which has opened up weekend-home possibilities.

Other Peloponnese areas: The region is large, so there are various submarkets. The northern coast (around Patras, Greece’s third city) is primarily local, but the completion of the Rio-Antirrio bridge and new highway improved connectivity. Patras has a sizable student population and is a busy port, keeping its real estate moderately active. The Mani Peninsula (middle prong of the Peloponnese) offers rugged beauty and stone tower houses; it attracts niche buyers who want something offbeat (Mani has seen some foreign retirees renovating old stone homes in villages). Corinthia and Arcadia, closer to Athens, have mountain and seaside villages popular for domestic tourism (like Trikala Korinthias for winter ski getaways, or Astros for beach). These mostly remain affordable markets with second-home buyers from Athens.

Market outlook for Peloponnese: The Peloponnese is poised to keep gaining attention, especially as an alternative to the islands. Its advantages include easier overland access (no ferry needed), diverse landscapes (beaches, mountains, vineyards), and now some world-class resorts. Property prices in most of the Peloponnese are relatively low – one can still find village houses for under €100k – except in the few luxury pockets mentioned. We expect areas like Nafplio, Kalamata, and certain coastal hotspots to see above-average growth as more foreigners discover them. Rental yields can be good where summer tourism is strong (e.g. around Nafplio or near Navarino, short-term rentals are popular). One factor to watch is the expansion of Kalamata’s airport, which already has direct flights from many European cities; more connectivity will drive demand. In summary, the Peloponnese offers both high-end investment opportunities (for example, ultra-luxury in Porto Heli or Navarino) and value plays (renovating a heritage home in a scenic town). Its real estate future looks bright as infrastructure and promotion continue to bring this once-overlooked region into the spotlight.

Conclusion

In conclusion, Greece’s real estate market in 2024–2025 stands on strong footing. Economic stability, rising investor confidence, and booming tourism are fueling a sustained expansion across both residential and commercial segments. While property price growth has tempered from the frenzied pace of a year ago, values are still trending upward in most areas, and rental returns remain attractive relative to many European markets. Key government policies – from tax cuts to Golden Visa reforms – are reshaping the landscape, aiming for long-term balance. Investors should take note of the nuanced dynamics in each submarket: the cosmopolitan buzz of Athens, the revitalization of Thessaloniki, the ultra-premium island hotspots, and the hidden gems in Crete and the Peloponnese each offer distinct opportunities and considerations.

Overall, Greece offers a compelling proposition as we head further into 2025: it combines the upside of an emerging market (after a decade of rebounding from lows) with the stability of a Eurozone country and the lifestyle appeal that few destinations can match. Whether one is seeking a commercial investment in a city center, a rental villa by the sea, or a long-term retirement home under the Mediterranean sun, the Greek market has something to offer. As always, due diligence and local expertise are key – but the trends suggest that the future is promising for Greek real estate.

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