For years, Greece’s housing sector lay in the doldrums after a crushing post-2008 crash. Between 2007 and 2017, urban home prices plunged about 42% (nearly 48% in real terms). That decline erased decades of gains. But over the past half-decade, a quiet renaissance has unfolded. Today prices are rising again across the country – led by Athens and the Athenian Riviera – buoyed by returning optimism from local buyers and a flood of foreign capital. Still, growth is not runaway: recent data show gains moderating, suggesting cautious optimism rather than a full-blown boom.
A Rocky Road: From Boom to Bust
In the 2000s Greece enjoyed double-digit housing growth, fueled by easy credit. But the 2008–09 crisis and subsequent austerity reversed that boom. From 2007 to 2017, Greece’s Bank of Greece index of urban dwelling prices fell roughly 41.9%, leaving many properties underwater for years. Recovery only began around 2018 as the economy stabilized. The rebound gathered steam: even a COVID lull in 2020 was brief, and annual price gains accelerated to 12–14% by 2022–2023. (See chart below.)
Chart: Bank of Greece housing price index (urban dwellings, 2007=100). The protracted trough (blue area) has given way to sustained gains, though annual growth is cooling from 2022–2023 highs.
Signs of Life: Data & Price Trends
Official data confirm a broad upswing. In 2024, residential prices grew about +8.6% year-on-year, lower than the +14.2% jump in 2023 but still solid. Bank of Greece figures show prices up +8.7% in 2024 (vs +13.9% in 2023). In Q4 2024 alone, national apartment prices were +6.6% higher than a year earlier, with Athens up +6.2% and Thessaloniki +8.2%. Even new-build homes in Athens are now fetching record prices: by mid-2024 Savills Greece reports that newly constructed units were 5–8% above their pre-crisis (2007) price levels. In other words, much of the ground lost since the crash has been recovered.
On the ground, market platforms echo the surge. For example, Q1 2025 data from Spitogatos show asking prices in prime Athens districts up roughly 8–12% year-on-year (Athens South ~+9.2%, Center +11.8%). Greater Attica’s sales markets are also hot. Savills finds residential values in the broader Attica region have climbed about 25% on average since 2020 – with especially strong gains in Piraeus and southern suburbs as new redevelopment projects (like Ellinikon) drive interest. In short, home values are once again on the rise, even if the pace has eased from the breakneck growth of 2022–2023.
Drivers of the Recovery
Several factors fuel this comeback:
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Tourism and Foreign Investors: Greece’s tourism rebound (over 30 million visitors in 2023) has revived demand for rental and second homes. Record tourist spending and short-term rentals have attracted both Greeks and foreigners to invest in coastal and island properties. Indeed, foreign buyers now dominate many markets. Engel & Völkers Greece reports that roughly 85% of its luxury transactions (especially on islands) involve international buyers. Bank of Greece data show non-resident real estate investment soared +28.9% in 2024, and many industry experts estimate that in Athens and hot-spot islands foreigners account for 30–70% of sales. As Kosmas Theodoridis (European Real Estate Brokers Assoc.) observes, Greece’s “lower real estate prices” and lifestyle appeal make it a magnet for these buyers.
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Economic Recovery: Greece’s macro outlook has brightened. The economy grew ~2.3% in 2023 (faster than the Eurozone average), unemployment has fallen to ~9–10% (decade lows), and Greece regained an investment-grade credit rating in late 2023. These boosts to confidence – plus EU-funded infrastructure projects (new metro lines, roads, tourism facilities) – have put more cash in consumers’ hands. Improved lending is also helping: mortgages, once frozen in the crisis years, have become easier to obtain again, though higher ECB rates in 2022–23 did temper borrowing. Still, banks report more appetite from homebuyers in late 2024.
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Limited Supply: A tight supply of new housing is supporting prices. Construction slowed dramatically after the crisis, and rising material costs have only constrained new builds further. With fewer new homes coming online, existing properties command higher prices. As Savills notes, construction costs and limited building activity have “maintain[ed] levels of demand” on resale homes, helping push Attica prices up ~25% in three years.
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Government Incentives: Policy has tilted toward property investment. Greece’s Golden Visa program (residency permits for real-estate buyers) has long drawn foreigners, and even after raising its minimum investment thresholds it remains a factor. Recent tax incentives – such as reduced taxes for home renovations and rental income relief – have lured both domestic owners and foreign buyers to the market. Major projects like the multi-billion € Ellinikon development on the Athens Riviera and upgrades to coastal marinas promise to further raise demand in those areas.
Collectively, these forces are lifting the market. In 2024 some 28,694 home sales contracts were registered nationwide (up +15.8% YoY) – an indication that both Greeks and foreigners are buying again. Apartments make up 83% of those transactions, with detached houses also rebounding strongly.
Hotspots: Athens, Riviera and the Islands
Growth is nationwide, but certain areas are especially booming. Athens and Attica have led the charge. The entire Attica region has seen price gains above the national average: southern suburbs (the Athenian Riviera) and north suburb enclaves now command the highest per-square-meter values. For instance, the coastal suburb of Vouliagmeni averaged about €7,200/m² by 2024. Map data from Savills show top prices in Attica are found in the South Suburbs and central Athens (around the Acropolis area). Classic high-end neighborhoods like Kolonaki, Filothei and Palaio Psychiko continue to see steady rises. New luxury developments – from Ellinikon on the Riviera to Piraeus port’s resurgence – have pulled even more buyer interest (in part because investors shifted from other parts of Athens when Golden Visa rules changed).
Mykonos – one of Greece’s luxury market poster children. High-end buyers are now snapping up villas on Mykonos, Paros and other islands, driving prime prices toward €10–12k/m². According to Engel & Völkers Greece, foreign nationals account for ~85% of luxury island sales.
Meanwhile, Greece’s islands and coastal regions are seeing their own mini-booms. Engel & Völkers reports that the Cyclades (especially Mykonos and Paros) lead in price growth, with premium seaside villas fetching up to €10,000–€12,000/m². Even traditionally pricey Santorini has seen a relative lull, while second-tier islands (Antiparos, Naxos, Kythnos, etc.) are growing hot. Sotheby’s International Realty finds that in H1 2023 demand for Athenian Riviera luxury homes “soared”, even outpacing Mykonos. Among luxury buyers, Americans and Brits now account for about one-third of all demand, with Greek and French buyers not far behind. In essence, the picture is of a market wide-open to foreign capital – from Athens penthouses to beach villas on Crete or Halkidiki.
Cautious Optimism: Outlook & Risks
So, is the market recovering? Yes – by most measures, Greek home prices have largely retraced their lost ground. But the pace is moderating, suggesting a transition from rapid rebound to a steadier phase. For 2025 the outlook is generally positive but measured. The European Banking Authority projects about a +4.4% rise in 2025, and an average of ~3.4% annually through 2027 – modestly above inflation. The Bank of Greece warns that runaway price rises could eventually “fatigue” domestic demand in overheated pockets.
Key risks remain. High global rates and inflation could limit Greek buyers’ budgets. Interest rate hikes have already slowed growth: asking prices in some lower-demand Athens neighborhoods are starting to correct downward. Moreover, if foreign buyers start to pull back (as has happened elsewhere in Europe with rising yields), demand pressure could ease. Supply-side efforts (new housing projects, easing bureaucracy) will also shape the trajectory.
In sum, Greece’s property market is on a recovery path, driven by strong fundamentals – a resurging economy, booming tourism and pent-up demand. But it’s a cautious rebound. Prices have climbed impressively, especially in Athens and the island hotspots, yet experts advise tempering expectations. The next few years may see continued gains, but more in a gentle upward arc than a dizzying spike. As one observer put it, Greece offers “attractive entry opportunities” for buyers compared to other markets, but even so investors will be watching affordability and global conditions closely. For now, the picture is one of renewal: after a long winter, the sun has come out on the Greek market, but the outlook remains measured – hopeful, yet vigilant about potential clouds on the horizon.
