The Greek real estate market saw an influx of over €5 billion in 2023, driving home prices close to record highs. According to Alpha Bank, investments in real estate management jumped by €1 billion compared to 2022, though they remain far below the pre-crisis peak of €25.6 billion in 2007.
A major catalyst for the surge in 2023 was the revamped “Golden Visa” program. Announced in late 2022, the changes prompted a wave of property purchases as investors rushed to secure permits under more favorable terms before the August 2023 deadline.
This year, residential investments accounted for 14.3% of total investments in the first nine months of 2024, contributing 2.3% to Greece’s GDP.
Rising Home Prices Near Historic Highs
Greek home prices have climbed sharply in recent years, recovering to 2011 levels and edging closer to their 2007 peak. In 2023, apartment prices rose at an average annual rate of 13.8%, up from 11.9% in 2022. The Bank of Greece reported a 7.8% rise in apartment prices in Q3 2024 compared to the same period in 2023.
For 2023:
- New apartments (under 5 years old) saw prices increase by 12.9%, compared to 12.5% in 2022.
- Older apartments experienced a larger jump, with a 14.5% rise, up from 11.6% in 2022.
Regional Price Trends
Geographical data reveals varied price hikes across the country:
- Athens: 13.9% increase in 2023, with a 7.7% rise in Q3 2024.
- Thessaloniki: 16.5% annual growth in 2023, and a significant 12.1% rise in Q3 2024.
- Other Major Cities: Prices rose by 15.0% in 2023, but only 4.9% in Q3 2024.
- Regional Areas: 11.6% growth in 2023, and a 9.5% increase in Q3 2024.
Across all urban areas, apartment prices were up by an average of 14.2% in 2023, with a 7.3% increase noted in Q3 2024.
Outlook for 2025 and Challenges Ahead
In its Interim Monetary Policy Report 2024, the Bank of Greece maintained an optimistic outlook for the Greek real estate market in 2025m but highlighted growing caution among investors, particularly in segments like commercial properties.
