Greece’s real estate market has undergone significant transformations in recent years, influenced by economic recovery, foreign investment, and shifting demand across property segments. As we enter 2024, property prices in Greece continue to rise, with notable differences across locations, property types, and external economic factors. Here’s a detailed look at real estate price trends in Greece.
Residential Property Price Trends in Greece
Residential property prices in Greece have been rising steadily since 2021, with an annual increase of about 5-10%. The rate of price growth varies greatly across regions.
Major Cities: Athens and Thessaloniki
In Athens, property prices have surged, particularly in central areas and the Athenian Riviera. Popular neighborhoods like Kifisia, Kolonaki, and the northern suburbs continue to see high demand, driven by affluent local buyers and international investors. The Athenian Riviera, stretching from Glyfada to Vouliagmeni, has one of the highest price growth rates due to its prime location by the sea and upscale amenities.
Thessaloniki, Greece’s second-largest city, is also experiencing price increases. The city’s urban renewal and increasing demand for residential and commercial properties have fueled price growth, particularly near the city center and waterfront areas.
Regional Price Trends
While Athens and Thessaloniki lead the price increases, Greece’s regional markets show more varied trends. Popular tourist destinations like the Cyclades (e.g., Mykonos, Santorini) and Dodecanese islands (e.g., Rhodes, Kos) have seen sharp rises in property prices. Mykonos, in particular, has become a luxury hotspot, with prices increasing by 15-20% annually in some areas.
Conversely, rural areas or less developed regions, like parts of northern Greece, have not seen the same price hikes but are attracting investment for more affordable properties or sustainable living options.
Foreign Investment and Its Impact on Prices
Foreign investment has been a significant driver of Greece’s real estate price trends, especially in prime locations. The Golden Visa program, which grants residency to non-EU nationals who invest in real estate worth at least €250,000, has attracted investors from countries like China, Russia, and the Middle East. In 2023, foreign buyers accounted for nearly 25% of residential property transactions in Athens.
This influx of international buyers has contributed to price increases in areas like central Athens and popular islands. While this is good for the real estate market, it has raised concerns about the affordability of housing for local residents, especially in urban centers.
Luxury Real Estate Market Trends
The luxury real estate market in Greece has experienced the most dramatic price increases in recent years. High-net-worth individuals (HNWIs) from across the globe are increasingly buying luxury properties in Greece, attracted by the country’s climate, lifestyle, and favorable tax policies.
In the Athenian Riviera, Mykonos, and Santorini, luxury villas, private estates, and boutique hotels are in high demand, with some prime properties reaching over €10 million. The Athenian Riviera has seen a 10-15% annual price increase, while the Cycladic islands are also seeing rising demand, pushing property prices higher.
Favorable tax incentives, such as the non-domicile tax regime, are further boosting demand for luxury real estate, and this sector is expected to remain strong throughout 2024.
Commercial Property Price Trends
The commercial real estate sector in Greece has been recovering steadily since the pandemic. Retail and office spaces in Athens and Thessaloniki are seeing a rebound in rental prices, especially in prime locations. Retail spaces on popular shopping streets like Ermou Street in Athens have seen consistent demand, driving up rents.
However, the office market is evolving, with a shift towards modern, flexible workspaces due to the rise of remote and hybrid work. Businesses are increasingly seeking offices that offer health-conscious designs, digital infrastructure, and flexible leasing options.
The logistics and industrial property sectors have also seen growth, driven by the e-commerce boom and increased international trade. Industrial zones near major ports, such as Piraeus, Thessaloniki, and Patras, have seen strong demand, resulting in higher prices and rents in these areas.
Outlook for 2024 and Beyond
As 2024 unfolds, property prices in Greece are expected to continue rising due to a combination of strong domestic demand, foreign investment, and the country’s stable economic environment. Residential real estate in cities like Athens, Thessaloniki, and tourist regions will remain in high demand, with price growth expected to continue, particularly in luxury segments.
However, affordability remains a concern in some areas, particularly in central Athens and islands with high foreign demand. Local governments may introduce regulations to address this issue, such as restrictions on short-term rentals and tax incentives for first-time homebuyers.
Overall, Greece’s real estate market is set for another year of growth, offering opportunities for both local and international investors. Buyers and developers should carefully consider market conditions, regional variations, and evolving trends as they plan their investments in 2024.
