Attica land plots record decade-high valuations

The average increase was measured at 4.21% compared with 2025 and 10.05% compared with 2024, highlighting the strong momentum of the market. However, compared with last year and the year before, a slowdown in the rate of growth is observed, suggesting that the market may be approaching the peak of its cycle. Over a ten-year horizon, land values are at their highest level, with an average cumulative increase of 48.08%.

The rise in land values is expected to continue over the next 12 months, albeit at a more moderate pace. The market is not experiencing bubble conditions, as the imbalance between supply and demand for newly built apartments continues to sustain land demand and, by extension, construction activity. Key uncertainties include the increase in construction costs (around 10% in recent months due to geopolitical tensions and disruptions in energy markets), the potential recalibration of land-for-building (antiparochi) ratios, and the timing of recovery in land values in the northern suburbs. The restriction of incentives under the New Building Regulation Code (NOK) is not favourable for developers and end-users, although it is considered to restore balance to the construction ecosystem.

Ten-year market overview

Land values are at their highest level of the decade, recording an average increase of 48.08% in asking prices compared with 2017 across the five local markets.

The highest increase (54.34%) is recorded for plots with a floor area ratio (FAR) of 3.6 in the municipality of Athens (Ambelokipi area), while the lowest increase (41.60%) is observed in Peristeri for plots with a FAR of 1.8.

A more in-depth analysis over the 2017–2026 period shows that, unlike other real estate categories, land plots demonstrate remarkable stability both during downturns and upswings. The decade-long trend clearly indicates an upward phase of the cycle, potentially approaching a new peak.

Between Q2 2025 and Q2 2026, median asking prices for land plots increased by an average of 4.21% (compared with 5.60% in 2024–2025) across the five monitored local markets. More specifically, the highest increase (5.07%) was recorded in Palaio Faliro for plots with a FAR of 1.4, with median indicative prices reaching €1,703/sq.m from €1,621/sq.m last year.

This was followed by the Ambelokipi area of Athens, where plots with a FAR of 3.6 increased by 4.68% to €2,727/sq.m from €2,605/sq.m. In Holargos, plots with a FAR of 1.2 increased by 4.17% to €1,350/sq.m from €1,296/sq.m, while in Marousi plots with a FAR of 0.8 rose by 3.96% to €972/sq.m from €935/sq.m. Finally, Peristeri recorded an increase of 3.21%, with prices reaching €998/sq.m from €967/sq.m.

All values refer to median indicative prices for standard plots. Plots with specific characteristics regarding location, visibility, views, or size are priced at the upper end of the range, often up to 25% higher.

Plot characteristics and availability

As expected, Ambelokipi (213 sq.m.) and Peristeri (217 sq.m.) feature smaller average plot sizes compared with Palaio Faliro (465 sq.m.), Marousi (462 sq.m.), and Holargos (280 sq.m.). It is evident that undeveloped plots of around one stremma (1,000 sq.m.) are now increasingly scarce, with many of them either containing older buildings or other existing structures.

Antiparochi and regulatory framework

The Council of State (StE), through its rulings, has tightened the application of the New Building Regulation Code (NOK), raising significant legal issues centred on the actual environmental impact rather than purely numerical parameters, aiming to reshape planning philosophy and ensure alignment with urban planning tools (Local and Special Spatial Plans, where applicable). These developments have created uncertainty across the construction and real estate sectors, particularly in high-value areas such as Athens and tourist regions, where bonus building coefficients play a decisive role in investment returns.

Based on data collected from developers and real estate agents as part of the Observatory, indicative land-for-building (antiparochi) ratios in Attica range as follows:

• Ambelokipi: 32–36%
• Marousi: 30–37%
• Palaio Faliro: 33–40%
• Peristeri: up to 37%
• Holargos: 30–36%

The cycle of high construction activity that began after 2018 continues, albeit with decreasing intensity, as demand for undeveloped plots and/or plots with existing older buildings remains strong, driven by ongoing residential development.

Key drivers of demand include:

• accumulated housing demand unmet during the 15-year economic crisis
• liquidity availability and undeclared income within the middle class
• the rise of remote working
• functional and technological obsolescence of pre-1980 buildings
• the integration of apartments into investment products
• returns from short-term rental activity
• portfolio diversification through real estate investment

At the same time, negotiations between developers and landowners are becoming increasingly difficult, as rising property prices are offset by higher construction and financing costs. Average lending rates currently range between 4.5% and 5.5%.

According to ELSTAT, the cost of raw materials for new construction, reflected in the New Buildings Materials Price Index, increased by 2.6% over the period March 2025–February 2026 compared with the previous year, versus a 5.3% increase in the corresponding earlier period. However, market conditions suggest a significantly higher increase in actual construction costs, while oil prices remaining around $100 per barrel are expected to further negatively impact costs during the year.

Regulatory developments and New Building Code (NOK)

The New Building Regulation Code (NOK), enacted under Law 4067/2012, has served as the primary legislative framework for construction in Greece since 2012, replacing the former General Building Code (Law 1577/1985). It introduced new planning tools such as floor area ratio instead of coverage ratio, coverage diagrams, and permitted exemptions (e.g. mechanical installations, green roofs), aiming to simplify regulations, improve energy efficiency, and support modern architectural design.

However, since 2022, the Council of State has issued landmark rulings declaring several provisions of the NOK unconstitutional. The most important include Decisions 146, 147, 148, and 149 of 2025, issued by the Plenary. Decision 149 was announced in December 2024, with the full ruling published on 5 February 2025.

Subsequently, Law 5197/2025 (Government Gazette 76/16-5-2025) amended Law 4067/2012 to ensure compliance with these rulings, introducing restrictions and addressing constitutional concerns regarding specific provisions of the NOK. In summary, the Court ruled that incentive-based increases in building coefficients and height limits are unconstitutional when applied without integration into local urban planning and supporting scientific studies. These incentives may only be applied when incorporated into Local and Special Spatial Plans through designated incentive zones.

The Court also annulled provisions allowing non-inclusion of certain spaces in the floor area ratio, including internal mezzanines and specific rooftop constructions, as well as exemptions related to pool coverage equivalence.

The rulings also affect building permits issued under the invalidated provisions. However, under the principle of legal certainty, permits for which construction had already commenced by 11 December 2024 are not affected in their previously approved parameters. For permits where construction had not begun by that date, revision is required to remove the affected incentives.

The Ministry of Environment and Energy, in compliance with the Council of State rulings, suspended in December 2024 the issuance of pre-approvals and new building permits relying on NOK provisions deemed incompatible with constitutional requirements. This suspension was extended until the end of April 2025 and applied to permits where construction had not commenced by 11 December 2024.

Following the amendment of the NOK through Law 5197/2025 and the issuance of administrative guidelines, a revised implementation framework was established for planning authorities regarding pending and new building permits.

According to ELSTAT data, during the period January–December 2025 compared with the same period in 2024, building permits declined by 2.6%, surface area by 9.7%, and building volume by 3.0%.