Greek Property Market Surges Past 2008 Peak with 7.3% YoY Price Increase in Q2 2025

A Historic Milestone: Greek Property Prices Surpass 2008 Peak

The Greek real estate market has hit a new milestone as apartment prices have officially exceeded the historical peak set in 2008. In the second quarter of 2025, prices surged by 7.3% year-on-year, marking a significant recovery from the financial crisis. According to ФАКТИ.БГ, the increase in property prices is largely driven by strong demand from both local and international buyers, compounded by constrained supply. This market dynamic has resulted in systemic risks, potentially increasing household financial burdens as affordability becomes a growing concern for residents.

Regional Trends: Attica Leads with Significant Price Hikes

Within Greece, the Attica region has been at the forefront of the property price surge, with the average residential area price reaching 3808 EUR per square meter. This represents a significant rise from previous years as noted by the National Bank of Greece. Since 2017, property values in 13 regions have increased by over 90%, with Attica setting the pace. The overall national average price has increased by 71.6% compared to 2017 levels, reflecting the widespread nature of this upward trend. The strong demand in Attica is partially driven by its economic activities and urban attractions, making it a prime location for both domestic and foreign investors.

International Influence: The Role of Foreign Investments

Foreign investment continues to play a crucial role in the Greek property market. As reported by The Luxury Playbook, net foreign direct investments in Q1 2024 recorded a positive annual rate of change of 4.6%, amounting to 520 million euros. This influx of foreign capital is not limited to major cities but is also prominent in tourist-favored regions such as Santorini, Crete, and Mykonos. These areas are particularly attractive due to their potential for generating high rental yields, especially through short-term vacation rentals.

Foreign investments grow by 4.6%, reaching 520 million euros in Q1 2024.

Market Projections: Slower but Steady Growth Ahead

Looking forward, the Greek property market is projected to continue its growth trajectory, albeit at a more moderate pace. According to projections discussed by AMON Group, after a period of rapid increases over the past seven years, the growth rate is expected to stabilize. The European Banking Authority forecasts a 4.4% rise in property prices in 2025, with a projected average annual growth rate of 3.4% between 2025 and 2027. This steady growth is indicative of a maturing market, focusing on sustainable development rather than speculative spikes.

Investment Strategies: Maximizing Returns in a Competitive Market

Real estate investors are exploring various strategies to maximize returns amid the rising market. Reach Real Estate suggests that flipping properties and short-term rentals are particularly lucrative strategies. Regions popular with tourists, such as Halkidiki and Santorini, offer high rental yields due to strong seasonal demand. Investors are advised to target properties that can be renovated and resold at a higher value, taking advantage of the current market dynamics to secure profitable returns.

Future Implications: Balancing Demand and Supply

As Greece's real estate market continues to evolve, balancing the dynamics of demand and supply remains crucial. The existing supply constraints pose systemic risks, potentially exacerbating affordability issues for the local population. According to eRed, current market conditions are influenced by factors such as geopolitical instability and increasing construction costs. For sustainable growth, strategic policy interventions and investment in new housing developments are necessary to alleviate these pressures and ensure long-term market stability.