Furnished or unfurnished apartment? The Complete Guide to Smart Real Estate Investing in Greece

Buying a furnished property can save time and accelerate returns, but it can also hide costly pitfalls. What are the key differences between a furnished and an unfurnished apartment, how do you assess the value of used furniture, and when should you sacrifice convenience in favor of control and long-term profitability?

The Greek real estate market attracts investors from around the world, particularly in cities like Athens and tourist areas. One of the critical decisions every buyer faces is whether to purchase a fully furnished property or an unfurnished apartment. This decision affects the initial investment, cash flow, the ability to generate income, and long-term returns.

In Greece, a country with a thriving tourism industry that attracts over 33 million visitors a year, furnished apartments offer high rental potential. However, behind the convenience and speed lie hidden risks and costs. What are the key factors to consider when choosing between a furnished apartment and an unfurnished one?

Advantages of Buying a Furnished Apartment

1. Generate income almost immediately

The most significant advantage of a furnished apartment is the ability to start renting it out immediately. For vacation rentals, this is a must—guests expect full functionality. Instead of waiting several months to choose a design, coordinate with suppliers, and have the furniture delivered, the property can start generating income within days of purchase.

In the Greek real estate market, timing is particularly critical: the tourist season is relatively short, and any delay means a significant loss of revenue during the peak season.

2. Higher rental premium

Consistent market data shows that furnished apartments command significant rental premiums: in long-term leases, furnished apartments command rents that are 10%–30% higher than those of unfurnished apartments.

For example, an unfurnished apartment in Athens that rents for €1,200 a month can yield €1,440–€1,680 when furnished.

3. Tax Benefits

In Greece, furniture in a property is considered a depreciable asset for tax purposes, and you can deduct its cost from your rental income through annual depreciation. Furniture is generally subject to a straight-line depreciation rate of 10% under Greek tax law.

You must provide official receipts (τιμολόγια) proving the purchase of the furniture to be eligible for a tax deduction. Keep these records on hand for tax audits to support your claims.

4. Convenience and time savings

For a non-local investor, managing a furniture project remotely can be a logistical nightmare. A fully furnished apartment eliminates the need for frequent trips to the country, dealing with suppliers in a foreign language, selecting items and coordinating deliveries, and arranging for installation and assembly work.

The Drawbacks and Risks of Buying a Furnished Apartment

1. Higher initial investment

The cost of the furniture is reflected in the purchase price. In the Greek market, furnishing a three-bedroom apartment costs between €10,000 and €15,000 for basic furnishings, and €20,000–€30,000+ for premium furnishings. The seller “prices in” the convenience—so the buyer pays not only for the furniture but also for coordination, installation, and the seller’s profit margin.

2. Furniture Quality – The Biggest Risk

This is the main weak point. The furniture included in the apartment may be of poor quality (which would require replacement within a few years and lead to low tenant satisfaction), show signs of wear and tear or defects (it looks good in photos but is actually worn out), or be outdated or unattractive (a design that doesn’t suit your target market).

3. Working capital and operating expenses

Furniture doesn’t last forever—every 5–7 years, you’ll need to replace mattresses and bed frames (€400–€800 each), sofas (€500–€1,500), appliances (refrigerator, washing machine), dining sets, and various items such as light fixtures, decorations, curtains, etc.

These costs add up over time. An unfurnished apartment doesn’t incur these expenses—the tenant is responsible for their own furniture.

4. Limited impact on the long-term value of the property

Studies show that furnished apartments do not appreciate in value any faster than identical unfurnished apartments. A property’s value depends on location, structural condition, and demand—not on the furniture.

However, in a future sale, the furniture may become a liability rather than an asset. In apartments intended for long-term residence, buyers prefer to choose their own decor; used furniture sells for much less than its original purchase price (even if it is in good condition), and outdated furniture may need to be replaced before the sale.

How do you estimate the value of a furnished apartment?

Request a detailed inventory list: Each item, including manufacturer, model, and age

Conduct a thorough physical inspection: Open drawers, check appliances, look for stains and damage (relevant for a furnished apartment with used furniture)

The value of used furniture is far below its original price – The comparison should be based on a similar used item from Facebook Marketplace or local markets – not the list price at a furniture store. 

Take into account the "hassle factor" – The true value of being “exempt” from buying and installing furniture has real worth, but it is subjective. 

Points to Consider When Negotiating the Purchase of a Furnished Apartment (Primarily Relevant to Pre-Owned Properties)

• Separate the value of the property from the value of the furniture—negotiate each part separately
• Request a separate shipping document for the furniture
• Negotiate a price reduction or exchange for worn items
• Request a warranty for all electrical appliances for 6–12 months

Summary and Conclusions

The decision between purchasing a furnished or unfurnished apartment is not black and white. A furnished apartment offers speed, convenience, and higher short-term income potential, but requires a higher investment, active management, and carries risks regarding the quality of the furniture. An unfurnished apartment provides full control, long-term flexibility, and lower operating costs, but involves a delay in generating income and requires time to design and furnish the apartment.

In the Greek real estate investment market, where tourism is a key economic driver, furnished apartments offer a significant advantage to investors focused on short-term rentals. A 20–40% premium on rent in coastal areas and Athens, combined with growing demand for high-quality vacation rentals, creates a significant opportunity. However, it is essential to conduct thorough due diligence, accurately assess the value of the furnishings, and plan for future maintenance and replacement costs.

The optimal strategy depends on your personal investment goals, your investment time horizon, your ability to manage your investments, and the specific market context.

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.