Greece’s real estate market is experiencing a remarkable boom, with property prices climbing steadily and investor interest—both domestic and foreign—reaching levels not seen since before the financial crisis. But beneath the surface of this growth story lies a growing concern: is this surge sustainable, or are we heading toward a housing crisis driven by limited supply, surging rents, and a deepening affordability gap?
Steady Price Growth, Slowing but Still Strong
According to the Bank of Greece, apartment prices rose by 6.6% in the fourth quarter of 2024—marking the seventh consecutive quarter of deceleration, but still showing clear upward momentum. Since their lowest point in 2017, prices have jumped by an astounding 73%, approaching the pre-crisis peak levels of 2008.
Despite a slight “cooling” in the pace of growth, demand for urban and coastal properties remains strong, fueled by foreign buyers, Golden Visa seekers, and investors looking for short-term rental income.
A Supply Problem in Disguise
The root of the issue, as flagged by the Bank of Greece, is not demand—but supply. While construction activity rose by 29.1% at the end of 2024, investment in housing still represents only 2.7% of Greece’s GDP, well below the EU average.
There is a shortage of new, energy-efficient, affordable housing, especially in major cities like Athens and Thessaloniki. This imbalance is pricing out younger households and low-to-middle income Greeks—many of whom now face limited housing options.
Commercial Real Estate: High Demand, Uneven Access
The commercial sector mirrors the residential one. In the first half of 2024, office prices rose by 4.2%, while retail property prices surged by 7.8%. Rents are also climbing: +2.2% for offices, +6.2% for retail spaces. But as demand focuses on high-profile, well-located properties, small and medium-sized businesses struggle to find affordable leases, especially in urban centers.
Opportunity for Investors, Challenge for Policymakers
The market’s upward trend offers opportunities—but also warnings. The Bank of Greece sees no signs of overheating or speculative bubble formation, but highlights long-term structural issues: stagnant supply, affordability pressures, and the urgent need for targeted housing policies.
Measures to accelerate construction, encourage affordable housing, and protect vulnerable tenants will be key in shaping the next chapter of this market.
