What is it about Greece’s capital that makes it such a vibrant city that never loses its charm and only gets better with time? What is the secret of its charm that attracts an average of nine million tourists a year and makes it a magnet for hundreds of thousands of students from around the world? There is no single answer to all these questions, but one thing is certain: anyone who is considering—or even just toying with—the idea of buying a home in Greece — Athens is the first and preferred destination that immediately comes to mind.
The Complete Guide for Investors outlines the main opportunities and considerations for investing in real estate in Greece.
The city of Athens, considered the cradle of democracy and home to magnificent monuments such as the Acropolis (the Temple of the Gods), the Herodion, the Greek Theater, and more, has existed for over 4,000 years. Millions of tourists visit it every year; by comparison, Israel’s total tourism figures, until a few years ago, stood at 3 million tourists per year. The fact that Athens is a tourism powerhouse makes investing in real estate there particularly profitable and worthwhile. Investors are divided into those who choose to purchase vacation properties for short-term rentals and those who buy apartments for long-term rentals—whether to locals or to students studying at one of the many academic institutions throughout the city. In addition, Athens is home to government institutions and serves as the financial and business nerve center of all of Greece.
A European capital city with 5 million residents and 8 million tourists offers real estate opportunities at prices lower than those in Israel’s outlying areas. Discover the potential.
Discover how comprehensive management—from purchase to sale—enables investors to grow from owning a single apartment to owning entire buildings in Athens.
New apartments in Athens that come fully furnished— including furniture, appliances, and dual warranties from the contractor and manufacturer—guarantee you peace of mind and a safe investment, free from surprises or unnecessary risks.
All eyes are on Athens—a quarter of a million students, digital nomads, and 8 million tourists a year. What makes Athens such a hotspot for apartment demand, and how does this make the city a perfect investment destination?
In addition to the return on investment resulting from rising property values, there is also the return from the rental income itself, with vacation rentals offering a potential return of 8–12 percent and long-term rental apartments offering a potential return of 5–6 percent. It is important to note that in recent years, tourists have increasingly preferred to stay in Airbnb apartments due to the rising cost of hotel stays.
Following the 2008 economic crisis, apartment prices in Athens plummeted by nearly 50%. While there has been a moderate rise in prices in recent years, real estate prices in Athens are still far from their pre-crisis levels. The implication: Apartment prices in Athens are expected to continue rising, according to all forecasts by real estate experts and industry insiders. Consequently, investment apartments in Athens have become the “next big thing,” and many foreign investors are flocking to them.
In addition to the return on investment resulting from rising property values, there is also the return from the rental income itself, with vacation rentals offering a potential return of 8–12 percent and long-term rental apartments offering a potential return of 5–6 percent. It is important to note that in recent years, tourists have increasingly preferred to stay in Airbnb apartments due to the rising cost of hotel stays.
As we mentioned earlier, a significant portion of Athens’ population consists of young people and students from all over the world. Athens is home to no fewer than 13 universities, with approximately 250,000 students enrolled. This fact creates constant demand for rentals, making real estate investments in Athens immediately viable and profitable. Naturally, the student population will generally be satisfied with modest, rather than luxurious, apartments—which broadens the options for purchasing an apartment in Athens and reduces the concern that it will remain vacant for a long time.
Tourists, students, digital nomads, and young couples—they all want an apartment in Athens. What’s driving this crazy demand, and are there still investment opportunities to be found in this bustling city?
A significant number of “Golden Visa apartments” are located in various parts of Athens. What is a Golden Visa apartment? These are investment apartments in Athens whose buyers can enjoy eligibility for European residency for 5 years, including an unlimited renewal option, as long as they continue to own the property. In some cases, this residency can be converted in the future into a European passport (EU citizenship). The Golden Visa benefit is unique in that it grants residency not only to the purchaser but also to their family members (spouses, children, parents, and even the parents of the spouse). Resident status grants the right to live, receive healthcare and education, and establish a business in any of the “Schengen Agreement” countries within the Eurozone. However, there is a minimum investment threshold for obtaining a Golden Visa, and the investment amounts range from €250,000 to €500,000; recently, in some regions, the threshold has been raised to €800,000—all depending on the specific region in question.
There is tremendous demand for rentals from students, digital nomads, and young couples, along with more than eight million tourists a year who are driving the short-term rental market. With a constant need for stylish, fully furnished apartments, Athens offers a stable and profitable opportunity for investors.
With urban renewal projects in Greece, managed by experienced developers, the time to completion is much shorter. While new construction in Israel takes more than three years, projects in Greece are completed within one to one and a half years. How does this affect when you start seeing a return on your investment?
Aglao— a vibrant neighborhood characterized by a high degree of ethnic diversity and located in the western part of Athens. The neighborhood boasts a rich history, a unique character, and a blend of residential, commercial, and cultural attractions. Aglao holds historical significance, as one of the main battlefields during the Greek War of Independence against the Ottoman Empire in the 19th century was located where the neighborhood stands today.
Kolonos and Spolia – neighborhoods characterized by high demand for residential and investment properties due to their proximity to central Athens and their excellent location between metro stations and commercial and cultural areas. These neighborhoods feature many student apartments, apartments for young couples, and Airbnb listings. Kolonos is also known as “Akademia Platonos,” named after Plato’s Academy, and has its roots in ancient Athens.
Gizi— a neighborhood located in the heart of Athens and known for its blend of tradition and modernity, making it a fascinating place for both locals and tourists. The neighborhood has a rich history dating back centuries and is known for its traditional taverns, cafes, and bars—making it a popular destination for nightlife in Athens. Gyzi Square (Plateia Gyzi) is a central square that serves as the heart of the neighborhood; some might see a resemblance between it and Dizengoff Square in Tel Aviv.
Zografou— located in the eastern part of central Athens—is perhaps best known for the National and Kapodistrian University of Athens, which is considered one of the largest and most prestigious universities in Greece. The university’s presence has a significant impact on the character of the neighborhood, attracting a diverse and young population. The neighborhood boasts several parks and green spaces.
Attiki— located in the northern center of Athens—blends historic areas with a modern urban fabric. In the past, Attiki served as a residential area for people who came to work in Athens. In recent years, it has undergone restoration and renovation, offering an architectural mix that includes historic neoclassical buildings alongside modern homes. The neighborhood’s streets are lined with traditional cafés, shops, and art galleries.
Kipseli—a neighborhood with a rich history dating back to the late 19th century, when it was developed as an upscale residential area for the Athenian elite. Over the years, it has undergone significant changes and today is home to a diverse community and hosts various cultural events and festivals. Despite these changes, Kipseli has managed to preserve its distinct identity and is considered a hidden gem in Athens. Some compare Kipseli to the Florentin neighborhood in Tel Aviv.
Peristeri— one of Athens’ largest and most popular neighborhoods, located in the western suburbs of Athens. In the past, Peristeri was a provincial neighborhood on the outskirts of Athens, but over the years it has become one of the capital’s largest neighborhoods. The neighborhood is known for its well-maintained apartment buildings and houses and is well-equipped with educational and healthcare facilities, making it an attractive place to live for both locals and newcomers.
Ilion—a neighborhoodlocated in the southern suburbs of Athens—is known for its picturesque setting. It features a mix of apartment buildings, townhouses, and single-family homes, and many of its streets are lined with trees and green spaces, giving the area a peaceful, suburban atmosphere. The neighborhood is known for its strong sense of community, and residents often gather for local events, festivals, and cultural celebrations. Ilion is also close to the Athenian Riviera and offers easy access to beautiful beaches and resorts.
Apartment prices in Athens range from 70,000 to 200,000 euros, depending on location, size, and whether the apartment is new or has been renovated. The price per square meter for a renovated or new apartment ranges from 2,500 to 7,000 euros in the city’s best neighborhoods.
Rent in Athens ranges from €12 to €25 per square meter. Generally, smaller apartments yield a higher return than larger ones. According to a study by Global Property Guide from August 2023, the yield on rental apartments in central Athens ranges from 3.45% to 7.71%. For a two-bedroom apartment, rent in Athens can range from €550 to €1,550, depending on location, size, and the extent of renovations.
Given its status as a sought-after strategic destination, "Palmo" has chosen to develop a range of investment projects and apartments in Athens, with a focus on leading and popular neighborhoods. Whether it’s an urban renewal project in the Gizi neighborhood, boutique apartments in the Ilioupoli neighborhood, or a mixed-use commercial and residential building in Aglao — in all of them, you can find Palmo’s unique signature, which is reflected in attention to the smallest details and the provision of a holistic living experience tailored to the needs of the times, manifested, among other things, in the creation of shared workspaces, fitness centers, residents’ clubs, and rooftops.
The project comprises 34 hotel-style apartments in a prime location in the heart of Athens.
Built to hotel standards for short-term rentals. High returns on short-term rentals
The Nea Chalkidona neighborhood offers easy access to the city's famous attractions.
The Petrona Neighborhood: A Profitable Investment in a Strategic Location in Athens
Peristeri is the top choice for families and young couples looking for a place to settle down.
The Victoria neighborhood is where it's all happening. Its cultural life never stops.
Chrysopoulou: In one of Athens’ most attractive and sought-after neighborhoods—Kipseli.
A property expected to appreciate in value, located in one of Athens’ most attractive and sought-after neighborhoods—Spolia.
The Iliofoli neighborhood is known for the high quality of life it offers its residents, thanks to the variety it provides.
, Greece
Greece's financial, cultural
, and industrial hub
: Over 7.5 million tourists a year
Athens has a population of approximately 4.5
Close to Israel
Up to a two-hour flight
Real estate prices are lower
than in other European capitals
High returns on assets
Tax Treaty Between Israel and Greece
Yes, now is a great time to buy an apartment in Athens.
According to the Bank of Greece’s housing index, property prices in the country reached an all-time high in the third quarter of 2008. Subsequently, in the wake of the recession and the economic crisis, property prices plummeted by more than 40% and bottomed out in 2017.
The Greek economy has begun to recover in recent years, leading to a rise in real estate prices in Athens. The city’s thriving tourism industry has driven the market, and for those seeking income from short-term rentals, this is an excellent opportunity. In addition, the “Golden Visa” program is attracting foreign investors to Athens and driving up prices, while recently launched development and renovation projects throughout the city are also likely to have a positive impact on real estate prices.
Real estate prices in Athens, especially when compared to other Western European cities, have been influenced by a combination of factors:
The Economic Crisis (2008–2018): The 2008 global economic crisis and the subsequent European crisis had a significant impact on the Greek economy. Greece faced a severe crisis, high unemployment rates, reduced revenues, and tight credit conditions. The real estate market was particularly hard hit, leading to a decline in property prices in Greece during that period.
Supply and Demand: In certain areas, there is a large supply of properties, particularly in older neighborhoods. These properties require renovation, which leads to lower prices.
Foreign Investment: Until recently, Greece did not attract as much foreign investment in real estate as other European countries. However, programs such as the Golden Visa, which offers citizenship to investors in exchange for a certain amount of investment in real estate, have begun to spark interest among foreign investors in the Greek real estate market.
The real estate market in Athens has made an impressive recovery since the economic crisis that hit Greece at the beginning of the previous decade. This recovery has been driven by foreign investment, growth in the tourism sector, a government that encourages investors, and other factors. It should be noted that real estate prices are still about 20% lower than they were before the crisis.
Do you have to be a Greek resident or citizen to buy property in Athens? No.
However, you need a Greek AFM (tax ID number). You can obtain a non-resident AFM through a fairly simple process.
On the one hand, short-term rental apartments offer a quick and high return on investment, especially in popular areas of Athens. On the other hand, because tenant turnover is high, maintenance and management fees are also higher.
Yes, Greece—and Athens in particular—has seen a significant increase in tourism in recent years. This growth in tourism has contributed to high demand for medium- and short-term apartment rentals. Tourism is one of the key sectors of the country’s economy, and it has a direct impact on real estate demand in Athens.
The most popular areas for accommodation in Athens: Plaka, Kolonaki, Koukaki, Monastiraki, and all the neighborhoods surrounding the Acropolis (Thission, Petralona, Filopappou) are considered highly desirable.
Those eligible for the Golden Visa may reside in Greece and many other European countries for five years, after which it can be renewed.
Investors who purchase properties valued at €250,000 or more (please note that in some parts of Greece, the amount has been raised to €500,000 and €800,000).
The treaty allows Israeli residents to avoid paying tax in Israel if they have earned income from real estate in Greece; in other words, even after paying tax in Greece, they will not be required to pay the remaining tax in Israel, which is unusual compared to other treaties.
– The purchase tax is 3.09%.
– Income tax on rental income is 15%.
– Capital gains tax: There is an exemption.
The cost of purchasing an apartment in Athens varies widely and depends on several factors: the apartment’s location, size, and condition. In buildings that have undergone extensive renovation, the minimum price is approximately 350,000 shekels.
Yes, the registration serves as legal proof of ownership of the property and guarantees the owner’s rights.
Ownership of the property in Greece belongs solely to the investor, and the apartment is registered in their name with the Greek Land Registry.
Just a two-hour flight from Israel
Local regulations that protect investors. In Greece, the purchase tax is low—just 3.09%, regardless of the number of properties—and there is an exemption from capital gains tax (on profits from the sale of an apartment). In addition, there is an international tax treaty between Greece and Israel that prevents double taxation.
Prices are on a steady upward trend, and according to expert forecasts, they are still far from reaching their full potential.
Greece’s economy is one of the fastest-growing in the European Union. This growth is driven by rising private consumption, a booming tourism industry [32 million tourists in 2022], and the influx of foreign high-tech companies. The impact of foreign investment on the local economy and EU funding is also evident.
All of PALMO's projects are located in central areas of Greece and in the areas with the highest demand
Yields in Greece are considered among the highest in Europe, due to the fact that real estate prices remain very attractive compared to other countries. The Greek real estate market is on the rise as a result of growing demand.
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