Diverging momentum in the Greek Real Estate market

The latest available data indicate that the market is entering a phase of “growth acceleration,” creating opportunities for strategic positioning by investors. As noted by real estate consultant and real estate broker trainer Nikos Manomenidis, the market is now moving at “two speeds,” as momentum is primarily driven by institutional investors, high-net-worth individuals, and international capital. At the same time, domestic buyers with access to financing are finding investment opportunities. In this context, he also highlights the decline in homeownership rates.

“Construction confidence indicators are rising significantly and investors are placing greater trust in the market; however, there remains a gap between macroeconomic data and the reality faced by households,” notes Mr. Manomenidis. He adds that the gradual easing of interest rates is creating opportunities mainly for those with access to financing.

Continued increase in prices and capital returns

The House Price Index in Greece reached 179.31 points in the third quarter of 2025, recording a quarterly increase of 1.54%. With 2015 set as the base year (100 points), the market’s long-term upward trend remains strong, reflecting the steady strengthening of demand.

This trajectory is supported by the dynamic growth of the economy, with GDP increasing by 9.79% over the same period. This development reinforces the fundamental strengths of the real estate market and the sustainability of investments in both residential and commercial properties.

Improvement in financing conditions

A decisive factor for investment decisions in 2026 is the decline in borrowing costs. Three-month EURIBOR fell to 2.01%, while long-term interest rates based on the Maastricht criterion stood at 3.43%. At the same time, the yield on the Greek 10-year government bond declined to 3.13%.

Lower interest rates improve debt service coverage ratios (DSCR) and create conditions for higher leveraged returns, making the financing of new investment projects more attractive.

Construction growth and strengthening of supply

The supply side is now responding dynamically to demand. The Construction Business Expectations Index recorded an increase of 43.78%, reaching a balance of 33.50 points, reflecting growing confidence among builders.

At the same time, building permits increased by 16.05% on a quarterly basis and by 3.05% year-on-year. Despite a slight rise in the construction cost index (+0.57%), the increase in new permits suggests that developers believe the market can absorb new projects at current price levels.

Resilient investment demand despite household pressures

The Economic Sentiment Index remains at a positive level (107.70 points); however, consumer confidence continues to remain in negative territory (-49.20). This divergence indicates that the current momentum of the market is driven mainly by institutional investors, high-net-worth individuals, and international capital, rather than domestic private demand.

The unemployment rate stands at 8.70%, showing mild upward pressure, though not enough to overturn the broader picture of economic expansion that supports returns in both the residential and commercial sectors.

The investment conclusion

The Greek real estate market appears to be entering a “Construction Growth” phase, in which the simultaneous rise in prices and the decline in interest rates keep the window for capital appreciation open.

For investors, strategy is primarily focused on newly built residential projects and high-yield commercial properties, particularly in markets where the increase in building permits serves as a strong signal for optimal market entry timing.

At the same time, the decline in EURIBOR creates opportunities for refinancing existing investments or entering new projects with improved cash-flow projections.