Athens Central Districts See 27.4% Property Price Surge in Q3 2025

Athens Property Market Soars with 27.4% Price Increase

The property market in central Athens has experienced a remarkable surge, with prices rising by 27.4% in the third quarter of 2025. According to Astons, this impressive growth is a testament to the increasing demand for real estate in the city, driven by factors such as the relatively moderate prices compared to other European capitals, a booming tourism sector, and robust construction activities. The Golden Visa program and tax incentives for foreign investors have further fueled this upward trend, making Athens an attractive destination for international capital.

Suburban Areas Like Drapetsona Experience 22-26% Growth

While central Athens takes the spotlight with its substantial price hike, suburban areas such as Drapetsona are not far behind, witnessing growth rates between 22-26%. This surge in property values is indicative of the broader demand for real estate across the city, with buyers looking beyond the traditional hotspots. The increase in suburban prices can be attributed to factors such as the expansion of public transport, improved infrastructure, and a general quest for more affordable housing options compared to the highly sought-after central districts.

Foreign Investment Boosts Athens Real Estate Activity

Foreign investors have played a significant role in Athens's real estate market's dynamism, accounting for nearly 40% of sales, as noted by Immigrant Invest. The city's appeal is enhanced by the Greece Golden Visa program, offering residency to investors, which has been instrumental in driving demand. Additionally, tax benefits and a strategic location within Europe have positioned Athens as a prime investment hub. This influx of international capital is expected to continue to bolster the market, as investors seek to capitalize on high growth potential and yield opportunities.

Challenges of Affordability in Working-Class Neighborhoods

The rapid increase in property prices has, however, led to challenges in affordability, even in traditionally working-class neighborhoods. Parapolitika highlights how areas once considered affordable are becoming increasingly out of reach for locals. The rise of short-term rental platforms like Airbnb has contributed to this issue, reducing the availability of long-term housing options. Moreover, the limited housing supply exacerbates the situation, driving prices up further and making it difficult for local residents to enter the market.

Regional Comparisons: Athens vs. Other Greek Cities

Comparing Athens to other Greek cities, the capital has emerged as a leader in real estate growth. While Greece as a whole saw a 10% increase in property prices, Athens's central districts outperformed significantly. Cities like Thessaloniki and Patras also reported growth, but at a lower magnitude. The contrast underscores Athens's vibrant appeal and economic opportunities, attracting both domestic and international buyers. According to Astons Greece, the country's real estate market is projected to grow by 6-8% annually through 2026, with Athens expected to maintain its competitive edge.

Future Implications: Sustaining Growth in Athens Real Estate

Looking ahead, the sustainability of Athens's real estate boom hinges on several factors. Continued foreign investment and demand remain crucial, but addressing the housing supply shortage is imperative to maintain growth momentum. According to Investropa, authorities must balance development with affordability to ensure that the market remains accessible to a diverse range of buyers. RealEstateAbroad.com's analysis suggests that strategic urban planning and policy adjustments will be key to fostering a balanced and sustainable real estate environment in Athens.