Short answer:
The rise in housing prices in Greece is driven by economic recovery, the resumption of mortgage lending, the influx of foreign investors, the Golden Visa program, tax incentives, and growing demand in Athens and Thessaloniki. The market is still catching up from the crisis period.
Although housing prices in Greece have fallen dramatically over the past decade, a consistent yet steady upward trend in housing prices has been observed since 2018, including in 2025—particularly in high-demand areas and major cities such as Athens and Thessaloniki.
What are the reasons behind the rise in apartment prices in Greece?
The Golden Visa – Even After the Conditions Were Tightened, It Remains a Positive Incentive
Recovery from the economic crisis
The gradual recovery of the Greek economy, reflected in economic growth and a decline in the unemployment rate, has strengthened the purchasing power of Greeks. At the same time, banks in Greece began to reopen the option of taking out mortgages, albeit in a relatively moderate manner, after a decade in which the possibility of obtaining a loan for housing purposes was virtually closed off to the local population. Another aspect of the debt crisis was the phenomenon of hundreds of thousands of apartments remaining “locked up” due to legal complications, which contributed to a thinning of the market and an increase in demand.
"Eight out of ten buyers will pay a reduced tax rate"
Another factor that fueled demand and led to rising housing prices was a series of incentives and tax breaks announced by the Greek government to encourage foreign investment. Among the benefits:
*VAT exemption for new building permits and unsold apartments (applicable to apartments built starting in 2006).
*Property Tax Relief (ENFIA) – The Greek government has announced significant reductions in the Greek property tax, amounting to a discount of between 80 and 130 euros per year.
*Tax relief for real estate buyers on 26 islands designated by the government.
*Double Taxation Treaty with Israel – Greece has signed a double taxation treaty with Israel, under which Israeli investors will be taxed on the purchase of property in Greece in only one of the two countries, not both.
"Under the new rules, eight out of ten buyers will pay a reduced tax," Prime Minister Mitsotakis announced at the time.
The Entry of High-Tech and Global Companies
Closing Gaps and Correcting the Market
Another factor driving up prices is a natural trend in the Greek real estate market, which is currently “correcting itself” and closing the gaps compared to the pre-crisis situation. In fact, after years of prices plummeting by nearly 50%, the Greek real estate market still has a long way to go before returning to its pre-crisis state.
