Greece real estate market: Thessaloniki Homes Now Costlier Than Athens

Discover why houses in Thessaloniki are becoming pricier than those in Athens. Explore the dynamics of the Greece real estate market today.

In recent years, certain locales, particularly those favored by foreign investors seeking holiday homes, have witnessed a remarkable surge in property prices, surpassing even the traditionally coveted central Athens. This phenomenon is particularly pronounced in the municipality of Thessaloniki, where the average asking price for residential sales has skyrocketed by an astonishing 83.5% from the third quarter of 2019 to the present day, escalating from €1,310 per square meter to a staggering €2,400 per square meter. 

While Athens has also experienced a notable uptick in property values—43% to be precise, climbing from €1,522 per square meter to €2,177 per square meter—the pace of increase has been comparatively tempered. This disparity can be attributed to the fact that the capital's real estate market began its recovery as early as 2018, whereas Thessaloniki's resurgence commenced later and from a less robust baseline. Consequently, the current price differential stands at a striking 10.2%, with Thessaloniki now boasting higher property values than its southern counterpart.

Moreover, the neighboring region of Halkidiki has not been immune to this trend, as the average asking price there has reached €2,445 per square meter, representing a 12.25% premium over central Athens. Despite a noticeable decline in interest from Russian buyers in recent years, demand has been buoyed by nationals from other countries, thereby sustaining elevated prices in the area.

However, the Cyclades islands present an even more pronounced case of price inflation, with average asking prices soaring to €3,583 per square meter—an eye-watering 64.5% above those in central Athens. This escalation can largely be attributed to the prevalence of newly constructed, luxury holiday homes, often featuring amenities such as expansive gardens and private pools, which naturally command higher prices. 

In light of these developments, it is evident that significant investments have been funneled into the construction of new holiday home complexes across these regions. The interplay of high demand and escalating prices has also led to a market where well-constructed properties, previously acquired during the mid-2000s construction boom, are now being resold by private individuals, further complicating the landscape of Greece real estate. As we observe these trends, one cannot help but marvel at the intricate dance of supply and demand that continues to shape the property market in this sun-soaked corner of the Mediterranean.