Greece’s real estate sector has entered a new era of transformation, driven by shifting investor preferences, urban redevelopment projects, and a strong demand for high-quality commercial and residential properties. According to the Emerging Trends in Real Estate 2025 report by PwC and the Urban Land Institute, Greece’s property market is evolving based on a number of sector-specific opportunities, location-based factors, and long-term investment strategies. Understanding these trends is critical among investors considering investment in the country.
Understanding the commercial real estate boom
In the past years, commercial real estate in Greece, particularly in the hospitality and office sectors, has experienced unprecedented growth. Reports that office buildings and hotels accounted for 70% of the country’s total real estate investment volume clearly indicate that investors are shifting toward high-yield assets.
A tightening market in Athens further supports this trend. In 2023, office vacancy rates in prime locations dropped to 7%, a significant improvement from 12% in 2020, reflecting the rising demand for premium office spaces in the capital. Investors have also been rewarded with rental yields ranging from 6% to 8% in central business districts, making the sector highly attractive.
Looking ahead, the commercial real estate market appears even more promising with large-scale projects like The Ellinikon Project in Athens. One of Europe’s largest urban redevelopment initiatives, it aims to transform the old Athens International Airport site into a multi-use complex featuring offices, retail spaces, and residential units.
Additionally, Greece’s growing status as a business hub fuels demand for modern office spaces. Multinational corporations and startups establishing regional headquarters in Athens are driving interest in high-end commercial developments, particularly in urban centres.
Exploring opportunities and residency perks in residential real estate
While commercial investments surged, residential real estate continued to attract strong interest. Most of this can be attributed to international buyers seeking residency through Greece’s Golden Visa program. Introduced in 2013, the Golden Visa offers non-EU citizens and their families a renewable five-year residency permit in exchange for a real estate investment of at least EUR 250,000, along with visa-free access to Schengen states. As a result, it comes as no surprise that the residential sector also benefited from rising property values, which saw significant increases in the third quarter of 2024 compared to 2023.
In Athens, the heart of the country, residential property prices rose by 9.35% in the first quarter of 2024 compared to the previous year, underscoring the capital’s enduring appeal and the increasing demand for urban living spaces. Even more impressive is the growth in Thessaloniki, Greece’s second-largest city, which is leading in terms of price growth. In the same period, house prices surged by 12.19%. With its rich history and vibrant culture, this northern city is increasingly on the radar of domestic and international investors.
However, the growth is not limited to the major urban centres. Other cities across Greece, excluding Athens and Thessaloniki also saw a robust increase of 10.28% in house prices. In fact, Piraeus, Greece’s largest port, recorded the highest nationwide increase in average sale prices during April-June 2024. In the third quarter, the south suburbs of Athens commanded the highest asking prices at €3,818 per square meter. Piraeus has surpassed central Athens in price, driven by the Golden Visa program, short-term rental demand, and major metro infrastructure projects.
Tourism also greatly affects this. Athens continues to reinforce its position as a major European tourist destination, ranking 6th in Europe for Airbnb Christmas booking growth with a 31% year-over-year increase, behind only Rovaniemi, Finland. The country’s much sought-after islands like Mykonos, Santorini, and Crete are also not just holiday destinations; they’re real estate gold mines. These locations offer some of the highest rental yields in Europe, often exceeding 10%.
The growth is not limited to the more popular islands islands. In the first quarter of 2024, the Sporades islands, including Skiathos, Skopelos, and Alonissos, saw a remarkable 25% increase in property prices. Other notable increases were seen in Lefkada (21%), Chios (19.70%), and Zakynthos (16.10%).
Investment trends: who is investing in what?
Choosing the right investment, whether commercial or residential, largely depends on the investor’s goals. Commercial properties, particularly in the tourism and office sectors, offer attractive returns for high rental yields and business-driven growth, while residential properties under the Golden Visa program provide access to EU residency and long-term appreciation for stability, personal use, and residency benefits.
Recent reports have also seen unique investment patterns among different demographics. For example, Greek buyers seek properties under 120 sqm priced between €400,000 and €450,000, while foreign investors prefer luxury holiday homes with larger footprints.
Another key factor influencing real estate values is property condition. Renovated properties are highly sought after, as most buyers avoid renovation costs and delays. Industry expert Potamianos estimates that renovation can increase property value by up to 20%, though costs have surged to €1,000-€1,200 per sqm due to labour shortages and high demand.
Age and financing methods also shape the market. Buyers aged 40-45, typically rely on salaries and parental financial support. Buyers aged 55-60, often use inheritance or savings for holiday home purchases. According to a study from Elxis-At Home in Greece, which specialising in vacation and second-home markets, buyers over 50 and middle-to-upper management executives are the main investors in high-end Greek properties. Also, more recently, 80% of transactions are made in cash, starkly contrasting to the pre-crisis period when loans dominated property financing.
Seizing the opportunity
Greece’s real estate market remains a top choice for global investors in 2024, and strong momentum is expected to continue. Aligning market trends with your investment goals is crucial, whether you are exploring commercial ventures or seeking EU residency through real estate investment.
If you are ready to start a new chapter and enhance your global mobility, whether for yourself or your family, while investing in a vibrant economy, Citizenship Invest offers a curated selection of pre-vetted projects that meet all necessary requirements for Residency Visa applications. Our inventory is regularly updated with new opportunities, ensuring you find the right investment with confidence.
Get in touch with Citizenship Invest today to discover your ideal investment in Greece’s flourishing real estate market.
