More Expensive Homes, Fewer Transactions
According to the latest data, apartment prices in Greece in 2025 are increasing at a rate of around 6–7% annually, after double-digit increases in 2023–2024. The market appears resilient, fueled by tourism, foreign investors, and interest in properties in Athens and popular destinations, but the momentum is no longer frantic. At the same time, the number of transactions is estimated to have decreased by about 15% nationwide, with Athens showing an even greater decline in volume of sales. Practically, fewer buyers are proceeding with purchases, either because prices have outstripped incomes or because financing remains difficult.
This picture creates a paradox: property values are rising, but access to homeownership is becoming increasingly difficult for middle-income households. Research shows that demand for housing remains strong – the need for shelter does not disappear – but a significant part shifts towards renting or delaying purchase, with implications for social cohesion and youth mobility.
The Great Gap in Supply
If something truly worries analysts, it is not only high prices but also the decline in new construction. The latest available data show a dramatic slowdown. In certain periods, the reduction in new building permits and construction activity reaches or even exceeds 25–30%, while in samples from the early months of 2025, declines of over 35% in surface area and volume are recorded. Additionally, on an annual basis, new residential permits have decreased by approximately 26–27%, with Attica, where the housing problem is more acute, experiencing double-digit declines in new homes entering the market.
The cause is not one. On one hand, rising construction costs and the lack of specialized personnel pressure developers and reduce profit margins. On the other hand, judicial decisions that delayed favorable regulations and “bonus” building rights, combined with bureaucratic delays, create an environment of uncertainty for new residential investments. Demand remains high, supply is not renewed at the same pace, and the market shelf gradually empties.
Who Keeps Prices Alive
Within this scenario, one of the main reasons prices resist corrections is the presence of foreign investors and the segment of tourism and luxury markets. Programs like the Golden Visa continue to attract capital, with applications for residence permits through real estate investment increasing by over 30% in early 2025, even if the net inflow of direct foreign investments in residential properties shows fluctuations.
At the same time, Greece is still considered relatively inexpensive compared to other Western European markets, especially regarding seaside and tourist properties. This keeps interest in luxury homes, high-value holiday homes, and short-term rental investment properties alive, creating a two-speed market: a premium segment driven by international criteria and a mass segment where Greek incomes simply do not reach.
The Risk of an Expensive Exclusion
The convergence of these trends—rising prices, decreasing transactions, collapse of new construction—generates the risk of an expensive exclusion for a large part of society. If the supply of new homes continues to lag behind demand, prices are likely to remain high or even increase, even in a more moderate growth or stabilization environment. Already, studies show that most market professionals do not expect a sharp price decline, but mainly stabilization or small increases in the coming years.
For young people, couples wanting to start a family, and middle-income households, this translates into greater dependence on renting, increased housing costs as a percentage of income, and often the retreat from the dream of homeownership. Access to mortgage credit improves marginally, with a slight increase in new mortgage loans, but the high purchase cost limits how many can truly benefit.
What All This Means for the Next Day
The Greek real estate market is at a delicate point of balance. On one hand, it remains attractive to investors, offering a combination of rising values, rental demand, and international interest. On the other hand, the shrinking of new construction and the alienation of domestic buyers from homeownership create a structural tension that, if not addressed with housing policies, risks turning into a permanent housing problem.
The goal now is not just attracting capital but balancing investment potential with the right to affordable housing. Without boosting the production of new homes, establishing a coherent housing policy, and simplifying rules that block development, the real estate market will continue to show upward trends, but for fewer and fewer people.
Frequently Asked Questions. Greek Real Estate Market 2025
1. Why are property prices rising while transactions decrease?
The price increase is fueled by tourism, foreign investors, and limited supply, while the decline in transactions is due to high prices and financing difficulties for households.
2. Who is still buying properties in Greece?
Main buyers are foreign investors, luxury and tourist properties, while Greek middle-income households are shifting more towards renting.
3. What is happening with construction activity?
The production of new homes has significantly decreased (about 25–30%), mainly due to high construction costs, lack of personnel, and bureaucratic delays.
4. What does “two-speed market” mean?
There is a premium segment with international investors and tourist properties, and a mass segment where prices exceed most Greeks' incomes, limiting access to homeownership.
5. Is there a risk of falling prices?
Experts do not foresee a significant decline. The market is expected to stabilize or have small increases, with limited new housing supply remaining a factor.
6. What does this mean for young people and middle-income households?
Greater dependence on renting, higher housing costs as a share of income, and difficulty in acquiring homeownership.
7. What is needed to improve the situation?
A coherent housing policy, increased production of new homes, and simplification of rules that hinder development are necessary.
