Greece’s Real Estate Market in 2025

Greece’s real estate market is evolving, shaped by economic growth, demographic shifts, and policy changes. While investment opportunities remain strong, challenges such as non-performing loans and supply-demand imbalances require careful navigation.

Key Growth Drivers

Economic stability is fueling real estate activity, with GDP expected to grow by 2.3 percent in 2025 and unemployment dropping to 9.7 percent. Tourism remains a strong driver, increasing demand for short-term rentals in Athens, Thessaloniki, and key islands. Foreign investment continues to shape the market, particularly in the luxury segment, despite new restrictions. Urbanization is shifting demand towards city centers, creating housing shortages and pushing prices higher.

Regional Market Trends

Athens remains the top investment destination, with house prices rising 9.35 percent year-on-year. Coastal suburbs such as Glyfada and Vouliagmeni are seeing strong demand, with average prices reaching €3,750 per square meter. Thessaloniki is experiencing a similar trend, with prices up 12.19 percent, driven by urban renewal and student housing demand. Tourist hotspots like Ikaria and Chios have seen price surges of up to 17.4 percent as demand for second homes and short-term rentals grows. In contrast, rural areas face oversupply and declining property values due to depopulation and a lack of infrastructure investment.

Challenges: NPLs and Housing Mismatch

Non-performing loans remain a challenge, with outstanding balances reduced from €100 billion to €21 billion (Note: this excludes the €78 billion outside the banking system in the hands of loan servicers), but legal and bureaucratic delays are slowing resolution. Housing shortages in cities are creating affordability issues, as available properties are often larger and outdated, while demand is shifting toward smaller, modern units. Short-term rental markets are further restricting supply for long-term residents. In rural areas, oversupply continues to put downward pressure on prices, limiting investment potential outside of tourism-driven locations.

Future Real Estate Trends

Greece’s aging population is reshaping real estate demand. By 2050, more than 30 percent of the population will be over 65, increasing the need for senior-friendly housing and well-connected urban properties. Urban regeneration projects are revitalizing older buildings to meet modern living standards, while sustainability and energy efficiency are becoming key factors in property values. Investors and developers are focusing on mixed-use developments that integrate residential, commercial, and social spaces to adapt to changing urban needs.

Investor Outlook

Urban centers and tourist destinations will continue to offer strong investment potential, with steady demand and price appreciation. The luxury market remains resilient, particularly in prime locations. Policy changes related to short-term rentals and financial regulations could impact returns, making it essential for investors to stay informed and adaptable. Greece’s real estate market is poised for continued growth, but long-term success depends on aligning with demographic trends, addressing financial challenges, and adapting to regulatory shifts.