Thriving residential market, economic growth and new urban projects
The latest report from Deloitte, one of the Big Four consulting companies, highlights Greece's improving economic conditions and residential property growth. Greece continues to be one of the most affordable property markets in the EU, with residential property prices starting at €1,463 per square metre - only Bosnia and Herzegovina offers lower prices.
Housing prices have remained relatively low due to a combination of strong market competition and a moderate economic recovery. However, the market is showing positive momentum. This is mainly driven by foreign investment and a robust tourism sector. This trend is a sign that property values are likely to be on the rise.
Housing and the economy: close and interlinked. In the EU, housing is closely linked to economic indicators. Growing GDP typically supports rising property prices. In addition, interest rates play a crucial role. Higher interest rates make mortgages more expensive and dampen housing demand. While falling rates could support property values, experts warn that rates are unlikely to return to pre-crisis lows soon. This means that prices are unlikely to fall significantly, although housing may become more accessible.
Deloitte's 13th Real Estate Index provides valuable insights into the European market, with a particular focus on Greece. It is based on data up to 2023. Some of the key findings highlight:
Read the full analysis for an in-depth look at how the Greek property market is evolving and what opportunities are ahead for investors.
According to experts, the European residential property market is now being shaped by several key trends.
We've previously covered how Greece is addressing this issue and how investors can navigate the changing landscape of the rental market.
Make sure you stay informed to make the most of these changes.
The bottomline: the market is uncertain but remains resilient and adaptive.
Most expensive cities to rent in 2023:
Cheapest cities to rent:
Cities with significant rental price increases:
Cities with declining rental prices:
These figures demonstrate the diversity of the European rental market. It offers opportunities for both premium and budget investment strategies.
Athens rental market growth:
Athens saw a 7.1% increase in rental prices in Q3 2024.
The most expensive areas were:
The European rental market remains dynamic, with both high quality and affordable opportunities for investors and renters.
2023 saw the real estate market experiencing high demand from both local and international buyers, particularly for the luxury housing segment. Property prices and investment activity continued to rise despite geopolitical uncertainties and high inflation.
The residential sector proved to be the most attractive, especially properties with strong investment potential. This led to significant price increases for apartments. Major cities such as Thessaloniki (16.2%) and Athens (13.7%) recorded the highest growth rates.
Today, a new home in Greece, comparable to countries such as Poland, Bosnia and Herzegovina, the Netherlands, the UK and Slovenia, typically costs between 6 and 8 years of average salary.
Additionally, subsidized housing programs for young buyers have strengthened the market, contributing to overall price increases. Investment in residential real estate grew by 20.7%, although its share in GDP remains low (1.9%).
The market's long-term growth potential is underlined by positive construction forecasts and an 18.1% increase in interest in new projects in 2023. Strong demand from foreign investors, especially in the luxury segment, combined with limited supply, continues to push prices up. The Golden Visa programme remains a key driver of capital inflows.
With strong price growth, active investor interest and support from the booming tourism sector, the property market in Greece is on an upward trajectory. Athens, the main centre of demand, continues to show steady growth in both selling and renting. However, future market growth depends on its ability to meet rising demand through increased supply and investment infrastructure.
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