The Greek property market is entering a new, more mature phase. According to the Bank of Greece, nationwide apartment prices rose +6.8% y/y in Q1-2025, after +8.9% in 2024 and +13.9% in 2023; regionally, Athens +5.5% and Thessaloniki +10.0% in Q1-2025. This “cooling” is happening against the backdrop of higher interest rates in the Eurozone and a drastic overhaul of the Golden Visa program.
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In this comprehensive analysis, we will delve into the key market drivers, the hottest investment destinations, and what to expect in 2026.
State of the Greece Property Market – Key Trends 2025
The market remains highly differentiated. The Bank of Greece also confirms the split: new apartments (≤5 years) up +8.0% y/y vs older stock up +6.0% in Q1-2025.
The primary demand drivers remain stable. 2024 set records with 40.7 million arrivals and €21.6bn in travel receipts, per the Bank of Greece. This tourism flow sustains high demand for short-term rental properties.
The rental market also remains strong. Typical gross yields in major cities are around 4%–5.5%. (Benchmark: average national gross yield ~4.39% in 2025 (Q4).
Investment Hotspots: Where to Invest in Greece?
Different regions in Greece are performing in starkly different ways, reflecting the new Golden Visa rules and local economic dynamics.
Athens (Attica Region)
- Why: The economic heart of the country, offering year-round demand.
- Prices: Growth here is the most moderate, at just +5.5% in Q1 2025. However, prices are the highest, especially in the southern suburbs (the ‘Athens Riviera’), where average asking prices have surpassed €4,000/sq.m. (Q3-2025: €4,091/sq.m in the South Suburbs).
- Yield: Stable but lower compared to other regions.
- Risk/Advantage: Low risk, high liquidity.
Thessaloniki
- Why: The “star performer” of 2025, the second economic hub, benefiting from infrastructure projects.
- Prices: It registered the strongest growth in the country at +10.0% year-on-year. The entry price is still significantly lower than in Athens.
- Yield: Attractive, with growing demand.
- Risk/Advantage: An excellent balance of growth potential and a lower investment threshold.
The Cyclades (Mykonos, Santorini) & Crete
- Why: The ultra-luxury and tourism-driven segment.
- Prices: Among the highest in Europe. Crete and many Cyclades islands are in the €800k tier because they exceed 3,100 residents. (Examples of €800k islands due to population >3,100 include Naxos, Paros, Syros, in addition to Mykonos and Santorini.).
- Yield: Potentially very high, but almost entirely seasonal (from short-term lets).
- Risk/Advantage: High dependence on tourism and short-term rental regulations.
Key Factors for Foreign Investors
The Golden Visa Program: Radical Changes from 2025 (Law 5100/2024)
This is the most significant change for the Greece property market this year. The government has implemented a tiered system:
- Zone 1 (€800,000): For the Attica region, Thessaloniki, Mykonos, Santorini, and islands over 3,100 residents.
- Zone 2 (€400,000): Applies to all other regions in Greece.
- Zone 3 (€250,000): Only for two specific cases: (a) restoration of listed buildings or (b) commercial-to-residential conversions (with the change of use duly completed before application). (Source: Bernitsas Law+2/Watson Farley & Williams+2).
Two key new rules:
- Single-unit & size rule: For the €800k/€400k tiers (Zones 1 & 2), the investment must be one single property with at least 120 sq.m of main living area (auxiliary areas like storage/parking don’t count). Crucially, this 120 m² rule does not apply to Zone 3 projects.
- Short-term rentals (STR) prohibited: Golden Visa properties cannot be leased short-term (e.g., Airbnb); breaches risk fines and permit cancellation under the new framework.
See how the Greek program compares to the UAE residency visa to gauge which better suits your goals.
Taxes and Purchase Costs
- Transfer Tax: 3.09% (calculated as 3% tax + a 3% municipal surcharge on the tax).
- Capital Gains Tax (CGT): 15% suspended until 31 Dec 2026 (Law 5162/2024).
- VAT on new builds: 24% VAT suspended through 31 Dec 2025; the 2026 draft budget foresees extension to end-2026.
- Annual Property Tax (ENFIA): Payable in 12 monthly installments from 2025 (first bill due end-March 2025).
Risks and Forecast for 2026
Stability Analysis: Currency and Politics
- Currency Risk: Greece is firmly in the Eurozone. The risk is related to general EUR/USD fluctuations.
- Political Risk: The current government is pro-business and holds a stable majority. The risk is minimal.
- Policy risk (STR): Athens has a one-year moratorium on new short-term rental registrations in central districts (such as Kolonaki and Koukaki) beginning Jan 1, 2025, with enforcement and extensions affecting select areas into 2026.
Expert Forecast for 2026
We expect the Greece property market to continue normalizing through 2026. The country’s economic growth is projected to remain one of the strongest in the Eurozone (around 2.0% – 2.2% according to the IMF and the European Commission), with inflation cooling to around 2.3%.
We forecast annual price growth in the 3% – 4% range nationwide.
Conclusion
Investing in Greece in 2025-2026 remains a strategic move, but it demands more selectivity. The era of easy, rapid gains is passing. The market is now rewarding informed investors seeking long-term value. The new Golden Visa rules have closed the door for small investments in premium zones but have opened new opportunities in emerging markets.
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