Greece: Europe’s Fourth Cheapest Real Estate Market

Explore why Greece stands out as one of Europe’s most economical real estate markets, attracting savvy investors seeking value and opportunity.

Greece's real estate market continues to emerge as a beacon of economic opportunity, enticing investors with its remarkable affordability. As the fourth most economical destination in Europe for property acquisition, Greece stands out not merely for its competitive pricing but also for the superior quality of its offerings compared to its continental counterparts. This juxtaposition renders Greece a veritable "bargain" for discerning foreign buyers.

Recent analyses conducted by Elxis – At Home in Greece, a Netherlands-based firm specializing in the sale of country houses to international clientele, particularly those hailing from Northern and Western Europe, reveal a burgeoning demand that significantly outstrips supply. According to data curated by the Global Property Guide and presented by Elxis, the current average sales price in Athens is a mere €2,120 per square meter. This positions it behind only Bucharest (€1,632/sq.m.), Sofia (€1,650/sq.m.), and Podgorica in Montenegro (€1,763/sq.m.) in terms of affordability. In stark contrast, major cities such as Madrid and Berlin command prices of €4,700 and €5,000 per square meter, respectively, while Paris and London soar to averages of €9,430 and €9,540 per square meter. The pinnacle of expense is reached in Zurich, where the average purchase rate skyrockets to €17,285 per square meter, closely followed by Luxembourg at €11,332 per square meter.

Athens has proudly claimed the title of the most affordable capital in Southern Europe. However, it is noteworthy that since the resurgence of the housing market in 2017, property prices have escalated by nearly 90%, as indicated by the price indices of the Bank of Greece (BoG). This surge, while indicative of a recovering market, poses a significant challenge for the average Greek household, as income levels have not kept pace with this rapid appreciation, compounded further by the recent inflationary pressures.

Conversely, for the average European investor, the cost of acquiring property in Greece remains remarkably low. When one considers the potential for future capital gains, the investment becomes increasingly attractive. Elxis projects an annual increase in holiday home sale prices of approximately 8-10% in the forthcoming years, suggesting that Greece's real estate market is not only a current hotspot but also a promising avenue for future financial growth.