Greece's Residential Property Market Analysis 2026

Despite signs of gradual moderation in respective growth rates, both sales prices and rents in the Greek housing market continue to rise, driven by solid demand and long-standing supply constraints, further eroding housing affordability in the country.

This extended overview from Global Property Guide covers key aspects of the Greek housing market and takes a closer look at its most recent developments and long-term trends.

Table of Contents

• Housing Market Snapshot
• Historic Perspective
• Demand Highlights
• Supply Highlights
• Rental Market
• Mortgage Market
• Socio-Economic Context

Housing Market Snapshot

Residential property prices in Greece continued to rise in 2025, although the pace of growth shows signs of gradual moderation. According to provisional data from the Bank of Greece (BoG), the Index of Prices of Dwellings in Urban Areas increased by 7.69% year-on-year in Q3 2025, corresponding to a 4.94% gain in real (inflation-adjusted) terms. For the full year 2024, revised figures indicate an average annual increase of 8.72%, or 5.55% in real terms.

Professional commentary generally interprets this performance as evidence of a still-supportive, investment-driven cycle. Savills notes that the sector has benefited from "a combination of strong domestic demand, sustained foreign investment, and favorable macroeconomic conditions, solidifying Greece's position as an attractive destination for real estate investment". In its 2025 briefing on financing and returns, ReWize similarly argues that the sustained increase in values reflects solid investor confidence, while also emphasizing that higher entry prices make financing structure and location choice increasingly important.

At the same time, concerns around affordability have become more prominent. Greece's Audit Court, in an analysis cited by Sofokleousin, highlights the persistent divergence between house prices and incomes, noting that "the large and persistent divergence between the two makes the housing market increasingly out of reach for the average citizen".

Greek house price annual change:

Note: Greek National House Price Index
Data Source: Bank of Greece.

At the regional level, Thessaloniki recorded the strongest price growth in Q3 2025, with residential values increasing by 9.61% year-on-year. In Athens, the annual increase was more moderate at 6.55%, while other urban areas (excluding Athens and Thessaloniki) saw prices rise by 8.91% over the same period.

Data Source: BoG.

Data from the property platform Spitogatos further illustrates the trend, with national average asking prices for residential properties rising by 10.0% year-on-year in Q3 2025. The highest price levels were observed in the prime districts of Athens. In Athens South, asking prices reached EUR 4,091 (USD 4,779) per square meter, up 7.15% annually. Athens North followed at EUR 3,323 (USD 3,882) per square meter, reflecting a 6.81% increase. In the municipality of Thessaloniki, the average asking price rose to EUR 2,625 (USD 3,066), marking a 9.38% year-on-year gain.

Average asking price by submarket:

Forward-looking projections are cautiously positive but explicitly conditional. According to an assessment reported by Kathimerini, the BoG considers that "the price trend in the Greek housing market is still showing no signs of slowing down and is expected to continue rising in the coming period", provided that domestic and foreign demand remain robust and the available housing stock is constrained. At the same time, the central bank warns that the housing problem is "deteriorating considerably", as continued increases in prices and rents intensify pressure on households. Experts from ReWize, on the other hand, project a gradual slowdown in price growth but steady demand from abroad, noting that "the combination of tourism, digital nomads, and investment incentives is expected to support the market, with yields remaining at attractive levels".

Historic Perspective:

From Crisis-Led Contraction to Investor-Driven Growth

Between the early 2000s and 2007, Greece's housing market experienced sustained price growth, particularly in coastal and urban areas, where values increased at double-digit rates. This expansion was largely driven by abundant credit availability and strong consumer confidence. The upward trajectory came to an abrupt end with the onset of the global financial crisis in 2008. From 2007 to 2017, the Index of Prices of Dwellings in Urban Areas declined by 41.87% (-48.42% in real terms), reflecting the broader economic downturn marked by severe austerity measures, soaring unemployment, and a prolonged credit contraction that brought residential construction to a near halt.

Recovery began to take hold in 2018, following Greece's exit from its final bailout program. Modest GDP growth and the gradual return of bank lending helped restore market confidence. House prices increased by 1.84% in 2018 and accelerated to 7.36% in 2019. Despite a temporary slowdown in 2020 due to the pandemic, prices continued to rise, recording a nominal gain of 4.76% (6.09% in real terms). The recovery was further supported by foreign capital inflows, particularly through the Golden Visa program, as well as the disbursement of EU recovery funds and a strong rebound in tourism, which sustained demand for both ownership and rental properties.

In 2024, residential price growth in urban areas remained positive but showed clear signs of deceleration, with prices increasing by 8.60% year-on-year, down from 14.22% in 2023. The moderation reflected a combination of factors, including persistent supply shortages, growing affordability constraints, and the government's decision to raise the Golden Visa investment threshold in high-demand zones to curb speculative foreign demand. After several years of rapid recovery, the market began to enter a more measured phase of expansion.

20-year annual house price change (based on the annual Index of Prices of Dwellings in Urban Areas and Consumer Price Index):

Demand Highlights:

Moderation Amid Tighter Affordability and Policy Constraints

Housing demand in Greece remains robust but is gradually normalizing after several years of very strong growth. The European Mortgage Federation (EMF) notes that affordability pressures, elevated borrowing costs in recent years, and a tighter regulatory framework for investment-driven purchases are increasingly acting as a brake, particularly in the most overheated segments.

In recent years, demand for housing in Greece has been underpinned by a combination of resilient domestic appetite and very strong foreign investor interest. Insights from the Cerved Property Services annual survey of real estate professionals suggest that, at the national level, foreign buyers typically account for around one-fifth to one-third of transactions. In major urban centers and key tourist destinations, their presence is considerably higher. In Athens and Thessaloniki, and in popular second-home locations such as the Cyclades, the Ionian Islands, Halkidiki, and Ermionida, professionals report that international buyers can account for well over 30% of demand and, in some micro-markets, more than 70%.

Official balance-of-payments data from the BoG confirm this picture. Net inflows for real estate purchases by non-residents have been rising sharply and peaked in 2024, accounting for a substantial share of total foreign direct investment. While the latest figures for H1 2025 still point to large absolute volumes at EUR 938.32 million (USD 1,063.86 million), they also indicate a 17.84% year-on-year decline, suggesting that the earlier surge of investment demand is gradually giving way to a more stable, but still elevated, base of foreign activity.

Data Source: BoG.

Greece's residence-by-investment scheme has been a central channel for this foreign demand. Since its introduction, the Golden Visa program has attracted a substantial number of buyers, particularly from China, Turkey, the Middle East, and the UK, who have used property acquisitions as a route to securing long-term residence. In recent years, the authorities have moved to tighten the framework. Minimum investment thresholds in prime areas have been significantly increased, minimum property-size requirements introduced, eligibility restricted to a single qualifying property per investor, and the use of Golden Visa properties for short-term rentals effectively prohibited.

These changes are explicitly aimed at tempering purely investment-driven demand in locations where tourism, residency-by-investment, and speculative purchases were putting the greatest pressure on the owner-occupier segment. Despite this, applications and related investment have remained high by historical standards, although much of the recent surge appears to have been brought forward in anticipation of the new rules rather than signaling an indefinitely rising trend.

Looking ahead, most institutional assessments still point to a supportive but more selective backdrop for housing demand in Greece. The EMF notes that the market expectations for the next period "remain moderately positive" but highlights worsening affordability and continuous changes in legislation and taxation as the main impediments. At the same time, the 4th Real Estate Market Barometer compiled by the University of Macedonia records for the first time that "real buyers are now fewer than sellers," signaling clear signs of demand fatigue and a market where strong underlying interest increasingly coexists with tighter budgets and more cautious, micro-location- and quality-driven decision-making.

Supply Highlights:

Regulation-Driven Pause in a Previously Expanding Construction Cycle

Housing construction in Greece is showing clear signs of cooling after several years of strong expansion and a 2024 peak. According to the Hellenic Statistical Authority (ELSTAT), only 23,462 housing permits were issued nationwide in January-August 2025, a sharp 24.53% year-on-year decline. The steepest drop, 32.30% year-on-year, was recorded in Northern Greece, while Attica saw 7,053 permits issued over the same period, down 12.60%.

Data Source: ELSTAT.

Residential construction activity by region:

The turning point came in December 2024, when the Council of State ruled that key "bonuses" in the New Building Regulation (NOK) - extra height and floor area in exchange for energy efficiency and green features - were unconstitutional in the way they had been applied, effectively blocking new permits relying on these incentives. Professional bodies immediately highlighted the uncertainty this created. The president of the Technical Chamber of Greece (TEE), Giorgos Stasinos, summed up the mood: "Court decisions must be respected, but legal certainty remains in question - in substance, the NOK incentives are still needed."

Throughout 2025, the government focused on restoring clarity by distinguishing projects that had genuinely started before 11 December 2024 from those that existed only on paper. The latter were allowed to be revised under the new rules, while projects already underway could retain part of the benefits under stricter conditions and new environmental charges. A follow-up decree and ministerial decisions introduced special urban-upgrade plans and an "environmental-equivalent" fee, enabling many bonus-based permits to proceed. The Environment Ministry emphasized that the aim was to limit the number of canceled projects and avoid leaving cities with half-finished buildings.

Moving forward, market experts generally interpret the current downturn in housing construction as a temporary, regulation-driven pause rather than a collapse in underlying demand. The Foundation for Economic and Industrial Research (IOBE) expects the impact to be reflected mainly in lower construction volumes in 2025 and 2026, rather than a structural halt in building activity. At the same time, the BoG warns in its October 2025 Financial Stability Review that weaker private building activity "further slows the recovery of supply," while also stating that "the revision of this framework in line with the Court's decision is expected to prompt a rebound in private construction activity," implying that once the new rules and the "environmental-equivalent" mechanism are fully absorbed, residential construction should gradually recover from late 2026 onwards, albeit after a clear interim period of tighter supply and continued pressure on prices and rents.

Rental Market:

Rental Inflation Past Peak, Still Remains a Concern

Against the backdrop of insufficient supply, exacerbated by units repurposed into short-term rentals (STR) in popular tourist locations, rental inflation in the traditional long-term rental segment in Greece continues to notably outpace general price growth; however, the pace of increases appears to be past peak now, with a slowdown observed since mid-2025.

Greek rent price index:

Note: Greek Rent Price Index, % change 1 yr
Data Source: OECD.

In November 2025, the actual rentals for the housing component of the consumer price index (CPI) reported by the ELSTAT registered a 8.6% year-on-year growth, down from the peak level of 11.4% in June 2025 but still above the 7.5% reported a year prior in November 2024. In parallel, the overall inflation remained relatively stable within the last twelve months, with the all-items CPI growth reported at the same level of 2.4% in November 2024 and November 2025, with only marginal fluctuations in between.

"Rents <…> have increased at a much faster rate than households' purchasing power in recent years. Those who rent are, therefore, actually experiencing a decrease in disposable income, effectively losing the benefits of wage increases and tax cuts," Kathimerini wrote in December 2025. "In practice, most tenants will need to reduce their requirements in terms of surface in order to cut rental costs, which also explains the difficulty of finding a 70-80 sqm apartment in acceptable condition."

Data Source: ELSTAT.

In nominal terms, as of Q3 2025, the average asking rent reported by the property platform Spitogatos exceeded EUR 10 per square meter in Central, North, and South Athens, as well as Piraeus and the Thessaloniki Municipality. The most pronounced year-on-year growth in asking rents was observed in West Athens (7.8%), Thessaloniki Municipality (7.8%), and Central Athens (7.6%).

While asking rents in tourist-centric and upscale districts continue to show solid annual growth, the platform's analysis of recent developments paints a more nuanced picture. "According to recent data, the average asking prices for residential properties for sale have increased by 10% year-on-year and by 1.6 % compared to the previous quarter. At the same time, rental asking prices rose by 7.2 % annually, while remaining nearly unchanged on a quarterly basis, indicating a stabilization in the rental sector," Spitogatos noted in their Q3 2025 market trends overview.

With rents across Greece still generally outpaced by sales prices, estimated yields on investment properties in the market demonstrate gradual compression. Research conducted by Global Property Guide in November 2025 found gross rental yields for residential properties in Greece at the average level of 4.40%, down from 4.60% previously reported in June and 4.77% in December 2024. The highest potential performance among the surveyed submarkets was estimated for rental properties in Athens (5.43%) and Patra (4.81%), while the lowest yields were observed in Kavala (3.47%).

Average asking rent by submarket:

Overall, reflecting a strong expansion of underlying demand, the share of households in the country renting rather than owning their residence increased from 22.8% in 2010 to 30.3% in 2024, according to Eurostat. Against this background, high rental inflation remains a concern in terms of housing affordability (as Greece already has the highest housing cost overburden in the EU).

Aiming to ease the deepening affordability crisis, at the end of 2025 the Greek authorities announced a package of six housing measures, including tax incentives to private developers who build new or convert older buildings and rent them out for at least 10 years, curbs on short-term rentals (ban on new registrations expanded to central Thessaloniki), and subsidies for renovations to boost the supply of affordable homes.

Mortgage Market:

Interest Rates Stabilize, Lending Volumes Show Early Signs of Revival

After eight consecutive cuts to its monetary policy rates (which brought the deposit facility rate to 2.00%, the main refinancing operations rate to 2.15%, and the marginal lending facility rate to 2.40%), the European Central Bank (ECB) has maintained its stance since June, making no further moves at the October meeting of the Governing Council.

Greek mortgage loan interest rates:

Note: Annualised agreed rate (AAR) / Narrowly defined effective rate (NDER) (R)
Data Source: ECB.

As the Greek mortgage market remains defined by variable-rate loans, the ECB's policy relaxation throughout the second half of 2024 and early 2025 eventually translated into lower interest rate levels for both new and existing housing loans in the country, which appear to have stabilized in recent months, and the gap between average interest rates on the two categories of loans has been practically eliminated. As of October 2025, the BoG reported the weighted average interest rate on new housing loans to individuals and private non-profit institutions at 3.51%, down from 3.77% a year ago. For outstanding housing loans with an original maturity of over 5 years, the weighted average interest rate reached 3.61%, down from 4.28% a year prior.

"In the near future, the pass-through of the reductions in the Eurosystem's policy interest rates to bank lending rates for businesses and households is expected to continue. The favorable liquidity conditions for Greek credit institutions and the improvement in the quality of their loan portfolios make it possible to contain the interest rate margin and further reduce the nominal cost of borrowing," the BoG noted in the most recent monetary policy report.

Data Sources: ECB, BoG.

Weighted average interest rates on housing loans to individuals and private non-profit institutions:

According to the central bank's assessment, the overall reduction in mortgage interest rates, as well as the upward trend in the house price index, continues to positively impact demand for housing loans in Greece. Another notable factor behind the pick-up in lending activity is the launch of the subsidized programs with a total budget of EUR 2.4 billion, funded in part by the EU Recovery and Resilience Facility. The BoG estimated that in the ten months of 2025, around one-third of newly granted housing loans were linked to the Hellenic Development Bank (EAT) managed programs for the purchase of new ("My Home II") or the upgrading of existing homes ("Upgrading My Home").

Aiming to attract prospective homebuyers who do not qualify for subsidized programs, some Greek banks have also reportedly launched special offers on loans for the purchase of a main residence and discounted interest rates for prospective borrowers up to 50 years old.

As a result, the total value of new loans for house purchase reported by monetary financial institutions in Greece demonstrated a notable rebound in 2024 (20.4% year-on-year), with even stronger positive dynamics observed in 2025. In the ten months of the year, a total of EUR 1.63 billion (USD 1.90 billion) in new housing loans was issued by banks, which was 45.8% more than during the same period in 2024.

At the same time, lending volumes in the country remain substantially below pre-crisis levels, with only 20% of housing purchases in the Greek market estimated to be financed with credit. Data presented by Theodoros Mitrakos, director-adviser and former deputy governor of the BoG, at the Prodexpo North real estate conference in 2025 showed that the number of annually concluded home purchase loan contracts dropped from 80,000 before the financial crisis to not exceeding 14,000 in recent years.

Mitrakos tied the pick-up in lending volumes observed since 2024 to subsidized programs, noting that the underlying landscape of the mortgage market still differs significantly from the pre-crisis period. "This is explained by the reluctance of today's young people to commit for such a long period of time and is naturally linked to two critical parameters, the high precariousness of the labor market and the low disposable income of young couples," he said, as quoted by Kathimerini.

Similarly, a 2025 study by Alpha Bank identified elevated interest rates (which, despite easing from peak levels, remain notably above the pre-2022 benchmark), tight borrowing conditions, and the fear of risk as the main deterrent factors for potential buyers who do not intend to use mortgage financing.

Data Source: Bog.

Overall, despite recent positive dynamics in new lending, given large repayments originating from the credit boom period, the net credit growth for housing loans in the domestic banking system remains in negative territory. The ECB banking sector data showed a 6.9% annual decline in the total value of outstanding housing loans in the country in 2024, following 4.4% and 3.7% drops in 2023 and 2022, respectively. As of October 2025, the housing loan stock stood at EUR 25.2 billion (USD 29.3 billion), demonstrating a further 4.0% decline since the beginning of the year.

The relative size of the market, represented by the ratio of outstanding housing loans to GDP at current prices, also continues to decline, dropping from a peak level of an estimated 40.1% in 2012 to just 11.1% in 2024. The share of Greek households owning their residences with an outstanding mortgage or housing loan decreased from 15.2% to 8.4% during the same period, according to the Eurostat figures.

Data Source: ECB.

Socio-Economic Context:

Economy Resilient Despite Structural Challenges and External Headwinds

The Greek economy continues to grow at a strong pace, with projected expansion of 2.1% in 2025 and 2.2% in 2026, driven by steady consumption and investments supported by EU funds. As the RRF comes to an end, however, the country's real GDP growth is set to moderate to 1.7% 2027.

Against this background, consumer price index (CPI) inflation in Greece declined gradually, averaging 3.0% in 2024 and most recently reported by the ELSTAT at 2.4% in November 2025. As robust demand and a still-tight labor market maintain upward pressure on consumer prices, the European Commission expects the indicator to ease slowly in the upcoming periods, reaching an average annual level of 2.8% in 2025 and 2.3% in 2026.

Data Source: IMF.

In the Greek labor market, favorable momentum continued in 2025, as evidenced by a further decline in the unemployment rate, which reached 8.6% in October 2025, a 17 p.p. decline from 25.6% observed a decade ago at the beginning of 2015. The latest assessment from the European Commission, however, points to a number of persistent structural challenges, such as elevated vacancy rates (reflecting labor shortages), particularly in the tourism and construction sectors, skill gaps, and low participation rates, especially among women.

Data Source: ELSTAT.

Overall, the near-term outlook for the Greek economy is favorable. The remaining crisis legacies and structural challenges, however, still weigh on medium-term growth prospects. The 2025 Article IV staff report from the IMF pointed out a still elevated public debt level (154.2% of GDP in 2024), with a significant amount of crisis legacy distressed private debt still present in the financial system, as well as persistent structural imbalances, including the still low levels of overall investment, a declining working-age population with low labor force participation, and sluggish productivity growth.

At the same time, the IMF's assessment indicates that the current economic landscape in Greece establishes a solid foundation to address remaining crisis legacies and imbalances necessary for achieving sustainable growth in the medium to long term.

Based on firm debt decline trajectory (debt-to-GDP ratio expected to approach 120% by 2030), continued strong budget performance (1.3% surplus in 2024, around 1% surplus projected for 2025), as well as resilient economic growth and other factors, in November 2025, Fitch Ratings upgraded the country's credit standing from 'BBB-' to 'BBB' with a stable outlook.

Sources:

1. Hellenic Statistical Authority (ELSTAT)
   1. Gross Domestic Product: https://www.statistics.gr/
   2. Consumer Price Index (CPI) - National Index: https://www.statistics.gr/
   3. Labour force (Monthly Data): https://www.statistics.gr/
   4. Building Activity Survey: August 2025: https://www.statistics.gr/
2. Bank of Greece (BoG)
   1. Indices of Residential Property Prices: Q3 2025: https://www.bankofgreece.gr/
   2. Residential and Commercial Property Price Indices and Other Short-Term Indices: https://www.bankofgreece.gr/
   3. Financial Stability Review. October 2025: https://www.bankofgreece.gr/
   4. Monetary Policy Interim Report 2025 (EL): https://www.bankofgreece.gr/
   5. Bank Deposit and Loan Interest Rates: October 2025 (EL): https://www.bankofgreece.gr/
   6. Monetary and Banking Statistics: https://www.bankofgreece.gr/
   7. Note on the Greek Economy: https://www.bankofgreece.gr/
3. Ministry of Finance
   1. Greece 2.0: National Recovery and Resilience Plan － Housing loans: https://greece20.gov.gr/
4. Ministry of Migration & Asylum
   1. Golden Visa (EL): https://migration.gov.gr/
   2. Article 64, Part D: Other Emergency Provisions, Residence Permit Linked to Investment in Real Estate… (EL): https://migration.gov.gr/
   3. Migration Statistics, Annex B, Analytical Tables: https://migration.gov.gr/
5. Hellenic Development Bank (EAT)
   1. Current Programs (EL): https://hdb.gr/
6. European Central Bank (ECB)
   1. ECB Data Portal: https://data.ecb.europa.eu/
   2. Key ECB Interest Rates: https://www.ecb.europa.eu/
   3. Monetary Policy Decisions, 30 October 2025: https://www.ecb.europa.eu/
   4. US Dollar/Euro, Monthly: https://data.ecb.europa.eu/
   5. US Dollar/Euro, Quarterly: https://data.ecb.europa.eu/
   6. US Dollar/Euro, Annual: https://data.ecb.europa.eu/
7. European Commission
   1. Economic Forecast for Greece: https://economy-finance.ec.europa.eu/
   2. Distribution of Population by Tenure Status, Type of Household and Income group: https://ec.europa.eu/
   3. Living conditions in Europe - Housing: https://ec.europa.eu/
8. International Monetary Fund (IMF)
   1. Country Overview: Greece: https://www.imf.org/
   2. 2025 Article IV Staff Report: https://www.imf.org/
   3. Greece: Selected Issues: https://www.imf.org/
   4. Greece's Remarkable Recovery: https://www.imf.org/
9. Foundation for Economic and Industrial Research (IOBE)
   1. Trends, Challenges and Prospects of Construction in Greece - 2025: https://iobe.gr/
10. Technical Chamber of Greece (TEE)
    1. Press Statement (EL): https://web.tee.gr/
11. Spitogatos
    1. SPI - Spitogatos Property Index: https://www.spitogatos.gr/
    2. Real Estate Market in Greece - Q3 2025: https://en.spitogatos.gr/
12. Alpha Bank
    1. Decoding Housing Affordability in Greece: https://www.alpha.gr/
13. Savills
    1. Athens Residential Market, 2025: https://www.kentriki.gr/
14. European Mortgage Federation (EMF)
    1. EU 27 Country Reports: Greece: https://hypo.org/
15. Cerved Property Services
    1. Cerved Property Services Annual Survey: https://www.cervedpropertyservices.com/
16. Fitch Ratings
    1. Fitch Upgrades Greece to 'BBB'; Outlook Stable: https://www.fitchratings.com/
17. Taxheaven
    1. Law No. 4067. New Building Regulations. (EL): https://www.taxheaven.gr/
    2. Law No. 5197 (EL): https://www.taxheaven.gr/
18. Kathimerini
    1. Central Bank: Housing Problem is Worsening: https://www.ekathimerini.com/
    2. Golden Visa Steadying Course as Demand Drops: https://www.ekathimerini.com/
    3. Housing Market Sales Down: https://www.ekathimerini.com/
    4. Building Bonus With an Asterisk: https://www.ekathimerini.com/
    5. Decree Finalized on New Building Code Bonuses: https://www.ekathimerini.com/
    6. Significant Increase in New Mortgages: https://www.ekathimerini.com/
    7. Mortgages for Just One in Every Five House Purchases: https://www.ekathimerini.com/
    8. Greeks Afraid of Mortgages: https://www.ekathimerini.com/
    9. Rents in Attica Have Climbed 35% in Five Years: https://www.ekathimerini.com/
    10. Soaring Rents Could Threaten the Economy: https://www.ekathimerini.com/
    11. Greece Unveils Housing Measures to Boost Supply, Curb Short-Term Rentals: https://www.ekathimerini.com/
19. To Vima
    1. Greek Banks Ride Mortgage Boom After 11-Year Lending Slump: https://www.tovima.com/
20. ReWize
    1. Real Estate Returns & Financing in Greece 2025: https://rewize.com/
21. Sofokleousin
    1. ECB survey: Acquiring a home is an illusory dream for Greeks (EL): https://www.sofokleousin.gr/