Greece Real Estate Market: Residential Slowdown Ahead

Experts predict a slowdown in Greece's residential real estate market, with house price growth expected to decelerate in the coming months and years.

Anticipating a shift in the real estate landscape, experts predict that the growth trajectory of house prices is poised to decelerate in the forthcoming months and years. The consensus among real estate analysts indicates a notable slowdown in the rate of increase in home sales prices, accompanied by a modest decline in transaction volumes.

Petras, a prominent figure in the field, elucidated that the surge in tourism has undeniably exerted upward pressure on property prices. Notably, the southern suburbs of Athens have become increasingly attractive to foreign buyers, who are now also gravitating towards larger islands boasting robust healthcare infrastructure and convenient air access, such as Crete, Rhodes, and Corfu.

A comprehensive analysis forecasts that, through 2028, annual price growth in the housing market will stabilize within the range of 3% to 5%. Concurrently, transaction volumes are expected to embark on a corrective trajectory. The era of double-digit price increases—once a hallmark of the market—appears to be behind us. Despite recent escalations, property prices in Greece remain approximately 40% lower than those in other European nations. This reality may be difficult for local buyers, who often grapple with the challenges of accessing the housing market, to accept. Nevertheless, it is an undeniable truth that positions Athens as one of the most affordable capitals in Europe for home purchases.

Interestingly, this evolving market dynamic has altered the profile of buyers. The influx of foreign investors now contrasts sharply with the previous demographic, which primarily consisted of individuals with a deep-seated affection for Greece, often stemming from multiple prior visits. Currently, foreign inquiries constitute about 15% of total searches, yet they exhibit a higher degree of specificity and quality. 

There is a pronounced demand for properties in central Athens, as well as the Cycladic islands, including Paros and Naxos. Additionally, Thessaloniki and its neighboring regions—such as Halkidiki and Kavala—are witnessing significant interest. A noteworthy trend has emerged post-pandemic, with German buyers, who traditionally favored the Peloponnese for summer retreats, now exploring northern Greece, drawn by the enhanced accessibility of these areas.

While tourism has indeed catalyzed price increases, the market is entering a phase of recalibration. The evolving preferences of foreign buyers, combined with the intrinsic value of Greek properties, suggest a complex yet promising future for the real estate sector.