Greek Real Estate Market 2025: Key Expectations and Trends
The Greek real estate market is expected to remain dynamic in 2025, driven by persistent international investor interest and advancements in sustainable property development. However, ensuring housing affordability and balanced growth will remain significant challenges for policymakers and industry stakeholders. In summary, 2024 was marked by growth, innovation, and shifting buyer preferences in the Greek real estate market. Balancing tradition with modernity, Greece continues to offer significant opportunities for investors while presenting challenges that require strategic solutions.
Golden Visa Program Updates
Greece’s Golden Visa Program, which offers residency permits to non-EU citizens in exchange for property investments, underwent significant changes in 2024. As of September 1, 2024, tiered investment requirements based on property location were introduced:
- €800,000 Investment Zone: Includes Athens (Attica Region), Thessaloniki, Mykonos, Santorini, and 32 other islands such as Crete, Rhodes, Corfu, Zakynthos, and Paros.
- €400,000 Investment Zone: Applies to less dense, non-prime areas.
Investors are required to purchase a single property of at least 120 square meters. Additionally, properties acquired under the Golden Visa Program are prohibited from being used for short-term rentals (e.g., Airbnb). Violations of this rule can lead to residency permit revocation and a €50,000 fine.
Urban Redevelopment Projects
Greece is implementing ambitious urban development projects to revitalize key areas and stimulate the real estate sector:
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Ellinikon Project
This €8 billion project at Athens’ former international airport aims to create Greece’s first skyscrapers, luxury villas, a high-end shopping mall, and environmentally friendly infrastructure, transforming the area into a modern smart city. The first phase is expected to be completed by 2026.
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Athens Metro Expansion
The expansion of the Athens Metro, particularly Line 4, aims to improve urban mobility and reduce traffic congestion. These developments are boosting property values in areas served by the new metro lines.
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GR-eco Islands Initiative
This initiative seeks to transform Greek islands into sustainable green economies. For example, Poros Island is becoming a model for sustainability with renewable energy systems, electric transportation, and advanced waste management solutions.
Impacts on the Real Estate Market
- Golden Visa Updates: The changes have shifted interest towards regions with lower investment thresholds, altering investment patterns.
- Urban Redevelopment: These projects have significantly increased property values and attracted both domestic and foreign investors.
- Housing Affordability Concerns: These developments have raised concerns about housing affordability for local residents, prompting discussions on solutions such as rent control policies and affordable housing initiatives.
Investment Opportunities Continue
The year 2024 was shaped by major policy changes and urban development projects in the Greek real estate market. These advancements are transforming investment trends and urban areas across the country. As we look to 2025, the market promises growth opportunities while also requiring policies that address housing accessibility challenges for local populations.