Understand The Real Estate Market in Greece

Greece has long been a coveted destination for luxury real estate investors, offering breathtaking landscapes, world-class architecture, and a thriving property market. As we move through 2024, the country’s real estate sector continues to evolve, with rising property values, enhanced infrastructure, and updated policies shaping investment opportunities.

In this comprehensive report, we explore the latest market trends, key investment drivers, and Greece’s revised Golden Visa program, providing essential insights for discerning investors seeking high-end properties in this Mediterranean paradise.

Market Overview & Recent Developments

1. Sustained Growth in Property Values

The Greek real estate market remains on an upward trajectory, with property prices rising steadily:

• Nationwide apartment prices increased by 9.2% year-on-year in Q2 2024.
• Athens saw a 9.1% rise, with premium areas such as Kolonaki, Glyfada, and the Athenian Riviera experiencing the most significant appreciation.
• Thessaloniki recorded a 12.1% price increase, making it one of Greece’s fastest-growing markets.

Luxury properties in Mykonos, Santorini, Crete, and Corfu continue to attract elite investors, offering high rental yields and capital appreciation.

2. The Booming Tourism & Short-Term Rental Market

Tourism is a key pillar of Greece’s economy, and its impact on real estate remains profound. The demand for short-term rental properties continues to surge, particularly in high-end island destinations and historic city centers.

However, new government regulations aim to balance tourism growth with housing affordability:

• A three-year tax incentive encourages landlords to convert short-term rentals into long-term leases.
• Increased taxation on Airbnb-style properties in prime locations such as Athens and Thessaloniki.
• Stricter zoning regulations in select areas to prevent over-saturation of holiday rentals.

Despite these changes, premium vacation rentals remain a lucrative investment, especially in exclusive locations where demand outstrips supply.

3. Golden Visa Program: Updated Rules & New Investment Requirements

Greece’s Golden Visa Program has been one of the most attractive residency-by-investment schemes in Europe. However, significant changes took effect on August 31, 2024, introducing a three-tier investment structure:

New Minimum Investment Requirements

🔹 Golden Visa applications rose by 10% in 2024, with 9,289 new applicants, particularly from China, the UK, and the Middle East.
🔹 The investment threshold increase aims to control over-speculation in prime areas and ensure long-term property market stability.
🔹 Investors who paid a 10% deposit before August 31, 2024, have until February 28, 2025, to finalize purchases under the previous lower thresholds.

📌 Important: The new rules require a single property purchase to qualify, eliminating the option to combine multiple smaller units.

For investors seeking EU residency and access to Schengen travel, Greece’s revised Golden Visa remains an exceptional opportunity, especially in emerging luxury markets outside of Athens and Mykonos.

4. Infrastructure & Luxury Development Projects

Greece’s luxury real estate market is being further enhanced by massive infrastructure investments, which are boosting property values and investor confidence.

Some key projects include:

✔ The Hellinikon Project – Europe’s largest urban regeneration initiative, transforming Athens’ former airport into a world-class luxury residential and commercial hub.
✔ Athens Metro Expansion – New metro lines increasing connectivity, particularly in up-and-coming neighborhoods like Kifisia and Piraeus.
✔ Port & Airport Upgrades – Enhancing access for international investors and luxury travelers, particularly in Crete, the Cyclades, and the Ionian Islands.
✔ Smart City & Sustainable Development Initiatives – Increasing demand for eco-friendly, energy-efficient properties in urban and island destinations.

Key Investment Drivers in Greece’s Real Estate Market

1. Economic Stability & Growth

• GDP growth projected at 2% for 2024, supporting continued real estate appreciation.
• Foreign direct investment at an all-time high, particularly in hospitality, real estate, and tech-driven industries.

2. High Foreign Investor Demand

• Competitive property prices compared to Spain, Italy, and Portugal.
• Luxury rental yields remain strong, with prime locations offering up to 8% annual returns.
• A surge in digital nomads and expatriates increasing rental demand.

3. Urbanization & Demand for Luxury Residences

• The gentrification of Athens continues, with historic areas such as Kolonaki, Exarchia, and Piraeus witnessing price surges.
• Exclusive resort-style properties in Mykonos, Santorini, and Crete remain in high demand among international buyers.

Exclusive Investment Opportunities

✅ High-End Seaside & Island Villas

🏝 Mykonos, Santorini, and Crete are the top choices for luxury buyers, with prices for premium villas starting at €1.5 million.

✅ Luxury Short-Term Rental Properties

🏡 Athens, Thessaloniki, and Corfu are top-performing markets, with properties yielding annual rental returns of 6–8%.

✅ Boutique Hotel & Resort Investments

🏨 The booming tourism sector offers high-yield opportunities in the hospitality sector, especially for boutique hotel conversions and resort-style developments.

✅ Premium Commercial Real Estate

🏢 Mixed-use developments, retail spaces, and office properties in Athens, Thessaloniki, and Piraeus offer long-term growth potential.

Challenges & Considerations

⚠ Regulatory Changes – New Golden Visa rules and short-term rental tax increases require strategic planning for compliance and profitability.
⚠ Market Competition – High-demand areas may experience oversaturation, making careful property selection crucial.
⚠ Bureaucracy & Legal Complexities – Investing in Greece requires expert legal and real estate guidance for smooth transactions.

Conclusion: Why Invest in Greece’s Luxury Real Estate Market?

Greece offers a unique blend of timeless charm and modern investment potential. Whether you are seeking a luxury holiday villa, a high-yield rental property, or a long-term commercial investment, the market presents exceptional opportunities for growth and returns.

With stable economic growth, increased foreign investment, and a restructured Golden Visa program, Greece remains one of Europe’s most attractive real estate destinations.

🔹 Looking to Invest in Greece’s Luxury Property Market?
Our team at Prestigia Realty specializes in exclusive high-end properties, providing personalized investment strategies tailored to your needs.