Projects worth billions of euros are making the Greek capital the most compelling test case for real estate investment in Southern Europe
Athens in 2025 is not the Athens of 2015. The city, which suffered significant damage during Greece’s economic crisis in the second decade of the millennium and became a symbol of urban decay and abandoned buildings, is now undergoing a dramatic transformation. A combination of European funding, aggressive government initiatives, and unprecedented levels of private capital has turned Athens into a massive testing ground for urban renewal—and a magnet for international real estate investors seeking the “next Berlin” or the “new Lisbon.”
The numbers speak for themselves: real estate prices in Athens have surged by 7.6% over the past year, with growth reaching 10% or more in certain areas. Nearly 40% of buyers are foreigners, many of whom are taking advantage of the Golden Visa program, which has made Greece one of Europe’s most popular destinations for real estate investment. Beyond the statistics, what makes Athens interesting is its diverse urban landscape: mega-projects driving regional-scale change, neighborhoods undergoing rapid gentrification, and transitional areas where future investment opportunities lie.
Elinikon: An Old Airport Transformed into an €8 Billion Smart City
The Ellinikon Project is not only the largest project in Athens—it is the largest urban renewal project in all of Europe. Spanning 6.2 million square meters, the site of Athens’ old airport is being transformed into an entire smart city, with a development cost of 8 billion euros. This project combines private enterprise with full government and regulatory support, and features ambitious environmental goals, including LEED Gold certification for all buildings.
The project is designed according to the “15-minute” urban principle—every resident will be able to reach any essential service within a 15-minute walk or bike ride. The site includes nearly 2,500 dunams of open green spaces, a kilometer-long landscaped beach, 50 kilometers of walking trails, and a tower that will become the tallest residential skyscraper in the Mediterranean region. The first phase of the project is scheduled to be completed by the end of 2026, with full development expected to continue through 2030.
The economic impact of the project is staggering: it is expected to generate €14 billion in additional government revenue and create approximately 85,000 jobs. The appeal to investors lies not only in these figures, but in the fact that the project has already attracted major partnerships such as the ION Group’s 250,000-square-meter innovation campus, which will house 2,000 professionals from 44 countries and transform Elinikon into a European hub for artificial intelligence and digitalization.
Investors who have purchased properties within a 2–3 km radius of Ellinikon over the past two years are already seeing value increases of 15–25%, and this trend is expected to continue as the project nears completion. The area, historically considered the outskirts of Athens—Pelinio, Elimos, and Argyroupoli—is being rebranded as the “Athens Riviera” and is attracting international audiences.
Matesurgio and Gazzi: The Neighborhoods That Proved the Transformation Model
While Ellinikon represents the bright future, neighborhoods like Metaxourgeio and Gazi tell the story of a success that has already taken place, offering investors a roadmap to what works in practice.
Metaxourgio, a historic district that was once the center of Athens’ leather processing industry, has experienced a sharp decline since the 1980s and has become a symbol of urban abandonment. The number of factories in the neighborhood plummeted from 3,808 in 1980 to 2,132 in 1993, and the area became dangerous and neglected.
The transformation began in 1991 with an urban study commissioned by the city government, but the real breakthrough came in the 2000s when the Benaki Museum opened its “138 Piraeus” branch in the area, followed by a wave of high-end art galleries. This move created a cultural critical mass that attracted boutique projects, independent cafés, and a young, creative population. One example of an urban renewal project in the neighborhood is a Dutch investment group that purchased five neoclassical buildings in 2019 for €1.2 million, invested an additional €1.8 million in renovations, and created 12 apartments and 3 commercial spaces. By 2023, the project’s value had reached €4.5 million—a 50% return in four years.
Currently, Metaxourgio offers prices of around €2,200 per square meter with an annual growth rate of 9.2%, and it is still considered an area in the midst of transformation—meaning there is further potential. The neighborhood is located 300–500 meters from Omonia Square, with direct access to the metro, creating strong demand from young renters, students, and foreign residents.
Gazí represents another aspect of the city’s revitalization. The Athens gas plant, which operated from 1862 to 1984, was converted in a process that began in 1999 into “Technopolis”—a massive cultural complex that attracts more than 900,000 visitors a year. A park and a metro station were built adjacent to the complex, making the area accessible and attractive. Ahead of the 2004 Olympic Games in Greece, the plant was finally vacated, and significant funds were invested in the neighborhood, which became a popular entertainment district in a strategic location in central Athens. Furthermore, it has also become a hub for the LGBTQ+ community, attracting a young and diverse crowd, thanks to its vibrant cultural and artistic scene. The result: the development of luxury apartments and a significant surge in real estate prices.
The model is clear: A public/cultural anchor project reduces risk and develops an area; pioneering investors enter; a critical mass of businesses and culture is created; broad commercial development takes place; and prices stabilize at a high level. Those who enter in the first phase see growth of hundreds of percent, those who enter in the second phase see strong returns and reduced risk, and those who enter in the third phase of purchasing an apartment in Greece, receive a stable property with high liquidity.
European Funding: The Quiet Driving Force Behind the Projects
In addition to large private projects, Athens is benefiting from a massive influx of European funding through government mechanisms. The “Antonis Tritsis” program is the prime example: the European Investment Bank has committed to investing one billion euros to finance sustainable urban development in Greece. The program focuses on hundreds of small and medium-sized projects across the city: upgrading water and sewage infrastructure, recycling systems, improving road safety, enhancing energy efficiency in public buildings, and renovating public spaces with smart city technologies. To date, local authorities have signed loan agreements totaling 2.7 billion euros, with 1.7 billion already disbursed.
In addition, the European Union’s JESSICA initiative provides revolving funds for integrated urban development. In Athens, €40 million is earmarked for Central Greece and €28 million for the Peloponnese, with objectives including the rehabilitation of brownfields, the development of cultural sites for tourism, and the creation of office space for small and medium-sized enterprises and research and development facilities.
Funding Sources, Investment Volumes, and Targets – Urban Renewal in Athens
The Risks
Given the many success stories, the question is whether it is worth buying an apartment in Greece in urban renewal areas, investing in areas undergoing transformation in Athens also involves risks.
Bureaucracy Greek bureaucracy remains an obstacle: delays in issuing building, renovation, and operating permits are common, and they can extend timelines and impact budgets. Projects require coordination among dozens of parties—administrative authorities, city councils, contractors, and decentralized administrative bodies—which increases complexity and slows down execution.
Rapid gentrification creates social tensions. Longtime residents are forced to leave, and protests or political pressure sometimes arise to slow down or regulate the process.
In addition, Regulations on tourist rental apartments has been tightened: restrictions on registering short-term rental apartments in central Athens neighborhoods until 2026 are creating uncertainty regarding the sustainability of returns in tourism-dependent areas.
Athens in 2025 provides a map real estate investment in Greece with many layers, opportunities, and challenges. Success depends on the ability to align the timing of entry with the phase of the urban renewal initiative, risk tolerance regarding neighborhood maturity, and the investment horizon in relation to policy changes. Metaxourgio and Gazi have proven that strategic intervention in specific areas can yield significant returns, while Ellinikon is setting new standards for transformation driven by a mega-project. What they all have in common: the city is no longer looking back.
Neighborhood Analysis – Risk and Return
Stages of a Typical Urban Renewal Project – Greece
Preliminary Design and Concept Approval
Defining project objectives, conducting a feasibility study, developing a design concept, and establishing functional and environmental goals.
Submission of a municipal plan and state approvals
Preparing a statutory plan, presenting the plan to the authorities, and obtaining regulatory approvals, including a building permit.
Cost Estimates and Infrastructure Lists
Preparing an accurate budget, planning infrastructure (water, electricity, sewage), determining an investment model, and allocating risks.
Engaging Landowners and Tenants
Bringing together property owners to sign contracts and agreements, typically through a partnership or a newly formed corporation.
Project Management and Contractor Selection
Tenders, selection of a contractor, and organization of a team of supervisors and a project manager.
Start of construction
Demolition, excavation and reinforcement work, structural framing, completion of infrastructure systems, and progress on finishing work according to the established phases.
Delivery and Move-In
Obtaining an occupancy permit, transferring property to owners or tenants, final registration with the Land Registry, and securing the necessary permits.
Stages of Urban Renewal in Greece – Renovation of Existing Buildings
Preliminary planning and obtaining building permits
Submitting detailed plans, conducting surveys, and managing permits from local authorities in accordance with local laws and building regulations.
Renovation of the building
This includes the renovation of facades, lobbies, elevators, and internal infrastructure (electricity, water, plumbing), and sometimes the addition of balconies or new features.
Energy and Environmental Upgrade
Measures to improve the property's energy efficiency through insulation, window replacement, and compliance with advanced standards such as Passive House.
Tailoring the apartments to the needs of potential tenants
Adaptation to different tenant profiles, such as families or students, including the installation of security bars, custom furniture, or interior partitions.
Final Steps and Preparation for Use
Installation of kitchens, bathrooms, and furniture, and preparation of the property for residential use or business operations.
Risk-Return by Investment Stage
Mapping the Stages of Investment in Urban Renewal – Greece
The information contained in this document is intended for general purposes only and does not constitute legal, regulatory, financial, or tax advice. The authors do not warrant that the information is accurate, complete, or up-to-date, and assume no liability whatsoever for reliance upon it. Before taking any action, it is recommended to consult with an attorney or a qualified professional advisor. Nothing herein constitutes an offer or recommendation to make any investment, and any action taken is solely at the reader’s own risk.
