The Greek residential market enters a phase of maturity

According to an analysis by Savills, despite the high interest-rate environment, the sector demonstrated remarkable resilience, driven primarily by the persistent imbalance between supply and demand.

More specifically, the rate of increase in residential property prices in Greece is expected to reach 7% in 2025, compared with 9% in 2024, indicating a gradual normalization following the sharp increases recorded in previous years. At the same time, the Greek economy continues to support the real estate market, with GDP growth exceeding the average of the Eurozone and the country’s investment-grade status helping to mitigate pressures stemming from the high cost of borrowing.

Data from the Bank of Greece confirm the upward trajectory of property prices. Based on the price index (2007=100), newly built properties in Athens have now surpassed 115 index points, significantly exceeding the levels recorded at the peak of 2008. At the same time, stronger momentum is also being observed in older properties, which are attracting growing interest from investors and buyers.

In particular, in 2025, prices for newly built properties in Athens increased by 5.3%, while prices for older properties rose by 5.7%, recording a slightly stronger performance. The trend is even more pronounced in Thessaloniki, where the secondary market recorded an increase of 10.1%, compared with 6% for newly built properties.

This development reflects a significant shift in market behavior, as rising prices for new developments are reducing affordability for part of the buyer base. As a result, investors and private buyers are increasingly turning to the existing building stock, which is also benefiting from energy-efficiency upgrade programs and the limited availability of new development land.

At the same time, construction activity in Greece reached a cyclical peak in 2024, with the number of newly built homes reaching its highest level since 2011. The data suggest that the sector managed to absorb pressures stemming from higher construction costs, with the region of Attica recording approximately 25% growth in construction activity.

During the first half of 2025, the issuance of new building permits showed signs of stabilization, while remaining at the highest levels of the past decade. The construction production index continues to move above pre-crisis levels, exceeding 150 index points in the first half of 2025.

From a geographical perspective, the Southern Suburbs of Athens and Eastern Attica continue to attract a significant share of development activity due to their strong investment appeal. However, limited land availability and rising entry costs are gradually prompting developers to seek new opportunities.

Within this context, the city center of Athens and Piraeus are emerging as new development hubs. The revitalization of central Athens is being driven by urban regeneration projects and strong demand for high-yield smaller apartments, while Piraeus is benefiting from improved connectivity and more competitive land values.

At the same time, the market has also been affected by recent rulings of the Council of State concerning incentives under the New Building Regulation, which led to a temporary slowdown in the issuance of new permits in early 2025 and prompted construction companies to reassess their development strategies.

Athens has now firmly established itself as an emerging investment destination in the residential sector, consistently attracting international capital. Property values in the capital frequently exceed the national average, reflecting the city’s strategic position on the global investment map.

Despite the slowdown in price growth, the hierarchy of property values remains stable. The coastal zone of the Southern Suburbs continues to record the highest prices due to the international appeal of the Athenian Riviera, while the Northern Suburbs maintain their value thanks to their natural environment and lower residential density.

At the same time, the real estate market remains a key driver of the Greek economy, as reflected in the performance of foreign direct investment (FDI). In 2024, real estate investments increased by 29%, reaching €2.75 billion and accounting for approximately 40% of total FDI inflows into the country.

This momentum continued in 2025, with investments in the sector reaching €1.47 billion in the first nine months, confirming the continued strong demand for Greek real estate.

An important role in sustaining investment activity is also played by the Golden Visa program, which continues to attract significant interest from foreign investors. Despite stricter eligibility criteria, applications during the first four months of 2025 increased by 31.9% year-on-year.

At the same time, the investment profile in the residential sector is also evolving, as the presence of institutional investors increases. Real estate investment companies, private equity funds and family offices are increasingly focusing on specialized property segments such as Purpose-Built Student Accommodation (PBSA) and Built-to-Rent developments.

In the luxury residential segment, high-specification developments—such as the first projects at The Ellinikon—are now evolving into mature investment products offering both income yields and capital appreciation prospects.

As the market moves into 2026, the focus is increasingly shifting toward architectural quality and compliance with ESG standards, with institutional investors prioritizing developments that combine high energy performance standards and strong absorption potential in an environment of constrained supply.