Where the next real estate value gains are emerging in Athens

As prices in the city’s prime residential districts approach more mature levels, investor interest is gradually shifting towards areas that continue to offer lower entry costs, attractive rental yields and strong demand, according to the Athens Residential Market Report – Q2 2026, published by Speak Real Estate, a member of the Daskalakis Group. The report draws on market data from Ask Wire, the Bank of Greece, the Hellenic Statistical Authority (ELSTAT), Eurostat and the Independent Authority for Public Revenue (AADE).

The findings show that the average asking price for residential properties in the Municipality of Athens reached €2,560 per square metre in the second quarter of 2026, representing an annual increase of 2.6%. Meanwhile, the average transaction price across the wider Athens area climbed to €1,387 per square metre, up 8.2% year-on-year. New property listings also rose by 30.4%, indicating that more homeowners are seeking to capitalise on higher market valuations.

Despite the increase in supply, demand continues to be supported by declining mortgage interest rates, which fell to 3.28%, as well as government-backed housing programmes such as Spiti Mou (“My Home”), which continue to channel much of the purchasing activity towards more affordable neighbourhoods.

Affordable Housing’s Top Performers

According to the report, Agia Varvara remains the most affordable area for both homebuyers and investors, with an average asking price of just €1,528 per square metre, the lowest among the districts surveyed. It also records the highest gross rental yield in Athens, at 5.94%, making it particularly attractive to investors seeking stable rental income.

Aigaleo follows, with average asking prices of €2,164 per square metre and a gross rental yield of 5.55%, among the highest in the market. Peristeri, where prices average around €2,500 per square metre, offers somewhat lower yields but benefits from a significantly larger and more liquid market, making it a key destination for first-time homebuyers.

Within central Athens, Kypseli stands out for offering one of the strongest combinations of affordability and investment returns. With average asking prices of €2,072 per square metre and a gross rental yield of 5.67%, the district delivers returns that are rarely found in comparable European urban markets. The report notes that the planned opening of a new station on Metro Line 4 is expected to further enhance the area’s appeal.

Affordable No Longer Means Truly Affordable

The report argues that lower-priced neighbourhoods are not necessarily affordable for their residents. To assess this, Speak developed a Housing Affordability Index, comparing residential property prices with estimated local household incomes.

The results suggest that property prices in Athens’ western suburbs have increased far more rapidly than local incomes. The price-to-income ratio reaches 7.6 times in Peristeri, 7.5 times in Haidari and around seven times in Aigaleo—levels that exceed those recorded in several of the city’s more expensive districts.

In other words, despite comparatively lower absolute prices, home ownership remains increasingly difficult for many local residents.

The report suggests that this trend helps explain the continued strength of demand for long-term rental housing, as a growing number of households are unable to purchase their own homes.

Prime Locations Remain a Safe Haven

At the opposite end of the market, Athens’ premium residential districts continue to function primarily as capital appreciation plays.

Voula records the highest average residential price at €6,103 per square metre, followed by Kolonaki at €5,993 and Glyfada at €5,895 per square metre.

Gross rental yields in these locations range between 2.9% and 3.9%, substantially below those recorded in the western suburbs, indicating that investors are primarily targeting long-term capital gains rather than higher current income.

The report also highlights Ellinikon, where the ongoing development of Europe’s largest urban regeneration project continues to act as a major driver of price appreciation across the entire Athens Riviera.

Where the Market Sees Opportunities

Speak identifies Kypseli, Ellinikon, Kolonaki, Agia Varvara and Marousi as the most promising investment locations over the coming period. Each caters to a different investment strategy, ranging from high rental yields and relatively low acquisition costs to long-term capital appreciation and market stability.

According to the report, the housing market is expected to maintain its upward momentum over the next twelve months. Under its baseline scenario, residential property prices are forecast to increase by 6% to 7%, provided that mortgage interest rates continue to decline and both domestic and international demand remain strong.