Greek housing market nears peak as property price growth loses momentum

According to Geoaxis’ Price Observatory, although prices continue to rise, the percentage increases are lower than those recorded in previous periods, suggesting a gradual moderation in price momentum.

More specifically, between the third quarter of 2025 and the corresponding quarter of 2026, the median annual increase in prices for newly built apartments stood at 5.79%, compared with 6.07% previously. For older apartments, prices rose by 7.37%, up from 6.65%.

Over a two-year period, newly built residential properties recorded an increase of 12.23%, compared with 15.11% in the previous measurement, while prices for older apartments rose by 14.51%, against 14.97% previously.

The picture over the past decade is even more striking, as residential property values have more than doubled. According to the analysis, prices for newly built apartments have increased by an average of 112%, while those of older apartments have risen by 109% compared with 2017.

Prices of Newly Built Apartments Across Five Areas

In the newly built apartment segment, covering properties with an average floor area of 116 sq.m., a median age of just one year and located on the second floor, Cholargos records the highest price, at €4,622 per sq.m., compared with €4,443 per sq.m. one year earlier. This represents an annual increase of 4.03%.

Palaio Faliro follows, with prices reaching €4,261 per sq.m., compared with €4,013, representing an increase of 6.18%. In Marousi, prices stand at €4,050 per sq.m., up from €3,825, marking an increase of 5.88%.

In Ampelokipoi, prices have reached €3,424 per sq.m., compared with €3,236, recording an increase of 5.81%. Finally, in Peristeri, the average price stands at €2,987 per sq.m., up from €2,790, with annual growth reaching 7.06%.

Peristeri has recorded the highest annual increase in prices for newly built apartments, while Cholargos has registered the lowest. Nevertheless, Cholargos continues to rank first in terms of asking prices.

Where Are Prices of Older Properties Rising the Most?

A similar upward trend is evident in the market for older apartments, which have an average floor area of 108 sq.m., a median age of 48 years and are located on the second floor. Cholargos remains the most expensive area, with prices reaching €2,707 per sq.m., compared with €2,555 previously, representing an increase of 5.95%.

In Marousi, prices stand at €2,289 per sq.m., against €2,121, marking an annual increase of 7.92%. In Palaio Faliro, the corresponding figure has reached €2,170 per sq.m., up from €2,027, representing an increase of 7.05%.

In Peristeri, prices have reached €1,852 per sq.m., compared with €1,699, recording an annual increase of 9.01%. Finally, in Ampelokipoi, prices stand at €1,805 per sq.m., against €1,688, representing an increase of 6.93%.

The market for older residential properties also shows that Peristeri has recorded the highest annual price increase, while Cholargos has registered the lowest. Prices, however, remain significantly below those of newly built apartments, reflecting differences in age and construction characteristics.

The survey is based on data collected from online property listings, newspapers and real estate agency websites, and focuses on typical properties in conventional locations. Residential properties offering unobstructed views, distinctive architectural design or particularly high-end materials may command prices more than 25% above those of standard apartments.

Housing Affordability Pressures and the Decline in Homeownership

The continued rise in property prices is placing further pressure on housing affordability, particularly among younger age groups. According to Eurostat data cited in the survey, Greece’s homeownership rate declined from 69.6% in 2023 and 69.7% in 2024 to 69.4% in 2025. Over the past decade, the country has recorded a decline of 4.5 percentage points.

The issue of young people’s ability to establish independent households is particularly pronounced. Some 56.3% of individuals aged 25–34 continue to live with their parents, while the average age at which young people leave the parental home reached 30.9 years in 2025, compared with 26.3 years across the European Union.

A key contributing factor is the widening gap between wage growth and residential property values. According to the survey, the average annual rate of increase in the minimum wage between July 2016 and July 2026 stood at 4.6%, while residential property values increased at rates close to 10%. This divergence is encouraging a shift towards renting and making homeownership increasingly difficult for lower-income households.

Rising Construction Costs Drive Property Prices Higher

Additional pressure is being generated by rising construction costs. According to the Hellenic Statistical Authority (ELSTAT), the cost of constructing new residential properties increased by 4% in the second quarter of 2026 compared with the corresponding period in 2025. For a standard construction project, costs are currently estimated at approximately €1,600–€2,000 per sq.m.

At the same time, new energy efficiency requirements, the adoption of ESG criteria, the integration of smart technologies and the need for more flexible and functional living spaces are adding to the cost and complexity of residential design and construction.

The growing prevalence of hybrid working arrangements is also strengthening demand for larger living spaces, natural light, sound insulation and reliable internet connectivity.

These developments are influencing both buyer preferences and investment strategies, as the quality and functionality of residential properties become increasingly important considerations.

Generation Rent and Investment Interest

Limited housing supply, combined with increased demand and the allocation of residential properties to tourist accommodation through short-term rental platforms, is among the key factors sustaining the upward trend.

According to the survey, the decline in available housing supply is also affecting the sample of property listings, which now includes a greater proportion of newer and more expensive apartments.

Despite the relatively low yields they may offer, residential properties are expected to assume greater importance in the portfolios of Real Estate Investment Companies (REICs) and private investors over the coming years.

Foreign investor interest is expected to remain resilient, supported by Greece’s safety and security, the Golden Visa programme and the comparatively lower prices of the Greek property market relative to other European markets and countries such as Israel.

At the same time, demand from domestic institutional and private investors continues to be supported by the availability of capital.

The outlook for the northern suburbs also remains positive, although the anticipated recovery in property values from Marousi and further north is expected to take several more six-month periods before being fully reflected in the market.

Towards Slower Growth, but Not a Property Bubble

The survey’s assessment is that residential property prices will continue to rise, albeit at a slower pace, potentially approaching the peak of the current market cycle. Limited supply, particularly in the newly built apartment segment, continues to provide fundamental support for the market.

The authors of the analysis believe that Greece’s residential property market is not currently experiencing bubble conditions, as available housing supply remains significantly constrained relative to demand.

The coming months will reveal whether the slowdown in price increases develops into market stabilisation or whether the persistent housing shortage will continue to sustain the upward trajectory, despite the growing affordability challenges facing younger generations.