Short answer:
Athens has become a sought-after real estate destination thanks to a combination of history, tourism, a revitalized urban lifestyle, relatively affordable entry-level prices, and growing demand for rentals. The city offers investors both urban stability and potential for capital appreciation.
The Acropolis, Herodion, taverns, and a wealth of lively entertainment venues—there’s no shortage of reasons to visit Athens in 2026, a city that has always been a favorite tourist destination for Israelis. And yet, in recent years there has been another, particularly lucrative reason that has sparked Israelis’ interest in this colorful and historic city that gave birth to democracy—investing in income-generating real estate that yields a handsome return, all at a price that’s one-fifth of an apartment in Israel.
Athens remains one of the most popular destinations among real estate investors in Greece in 2026, and for good reason. What is so appealing about this historic capital city, and how has it become a magnet for Israeli investors? We’re here to explain.
Low investment, high return
The economic crisis in Greece (2008) had a dramatic impact on the plunge in real estate prices in Athens, which have yet to return to their original levels. In fact, Athens and other major cities (such as Thessaloniki, Larissa, and others) experienced the sharpest declines in real estate prices, both because banks froze mortgage lending and because the price drop led more and more Greeks to sell their properties, or because banks sold them to cover debts. The price drop attracted more and more foreign investors to Greece, a trend that continues to this day. While there has been a gradual rise in apartment prices in Athens in recent years, in tandem with Greece’s recovery from the crisis, it is still possible to purchase an apartment in the capital with high return potential for a relatively low price. Real estate investments in Greece, especially in Athens, offer an excellent opportunity for investors seeking properties at attractive prices with significant growth potential.
And here is the forecast: growth
Since the economic crisis, the Greek government has made it a priority to revitalize the local economy and has invested heavily in Athens to improve its financial and tourism sectors and create jobs. Government investment only increases the profitability potential of buying property in Athens, which continues to grow and develop nonstop. Making Athens’ development a priority in government policy, combined with relatively low prices, means that more and more new projects are popping up in Athens, offering a variety of investment properties.
It’s important to remember that demand for properties in Athens is on the rise, partly due to the “Golden Visa” program, which is one of the most prominent examples of incentives offered by the Greek government to foreign investors. So, especially when it comes to real estate in Athens, “striking while the iron is hot” is particularly crucial—and how should I put it? There isn’t much time to waste.
A Tourism Powerhouse and Vacation Rentals
One significant advantage that makes real estate in Athens a "real estate bonanza" is the enormous potential for short-term rentals—that is, vacation rentals and Airbnb listings.
Athens has existed for over 4,000 years (!) and boasts a rich and magnificent cultural heritage, including the famous Temple of the Gods (the Acropolis), the Greek theater, and the symbols of democracy that “were born” in this very capital, surrounded by the Aegean Sea. Athens is also the business and financial nerve center of Greece, home to the country’s main government institutions, courts, and universities. Just recently, a truly astonishing statistic was released: Athens averages nine million tourists annually (!), making it one of the most visited cities in Europe. Just for comparison, until a few years ago, Israel boasted a peak of three million tourists a year—and that was for the entire country, not just a single city.
These figures explain why investing in real estate in Athens is considered profitable and safe, as the demand for vacation rentals is enormous. Just how profitable is it? Well, a vacation rental has a potential return of 8–12 percent, whereas the return on long-term rental apartments currently stands at 5–6 percent. It is important to note that in recent years, tourists have increasingly preferred to stay in Airbnb apartments over hotels, due to the rising prices of “traditional” accommodations.
Interested in finding an investment property in Greece? Take a look at our new projects
"Because the demand for rentals never ends…"
In addition to being an international tourist destination, Athens is home to hundreds of thousands of students, creating a constant demand for rental apartments—especially those located near academic institutions. Just to give you an idea, Athens is home to no fewer than 13 universities with over 250,000 students. Given their nature and socioeconomic status, this population is content with “small, decent apartments,” making the option of buying a property affordable for almost any budget.
Another important fact to note: Athens is home to approximately five million residents, accounting for no less than 40% of Greece’s population. This figure also highlights the high potential demand for housing in this famous capital city.
Benefits (and more) for Investors
As mentioned earlier, since the 2008 crisis, the Greek government has consistently introduced incentives aimed at encouraging foreign investment in Greece in general, and in Athens in particular. The highlight is the “Golden Visa,” which allows investors to obtain European residency for five years through a real estate investment, with the option of unlimited extension. The eligibility threshold for the Golden Visa has recently been raised, but there are still a number of benefits for investors, including a reduction in property tax (ENFIA) that has been in effect since 2019, a VAT exemption for new buildings, and tax benefits that we have detailed in previous articles (exemption from double taxation in Israel and Greece, low purchase tax, capital gains tax exemption, and property tax benefits).
A diverse selection of properties to suit every budget
Athens offers a wide variety of apartments and investment properties, differing in size, location, and purpose. These range from small apartments in need of renovation—which are better suited for renters and students—to vacation rentals and Airbnb properties, and even newer, more luxurious apartments. The investment range for an apartment in Athens in 2026 can range from €85,000 to €300,000, depending on location, size, and how much demand there is in the area.
A Guaranteed Vacation: The Hidden Benefit of Buying a Vacation Home
One of the benefits Israelis can enjoy when purchasing an apartment in Athens is the tremendous advantage of being able to use the property from time to time for private family vacations—whether spontaneous or planned in advance. Aside from the fun of visiting the city itself, Athens offers easy access to the various Greek islands, as well as a departure point for short, affordable flights to various destinations in Europe. In this case, mixing business with pleasure isn’t a dirty word—it’s actually highly recommended 🙂
Interested in investing in a property in Athens? Contact the "Palmo" team and we'll find the right property for you
Questions and Answers
According to the latest data, approximately 8 million tourists visit Athens each year. This is a significant number that reflects the city’s growing popularity as a leading tourist destination.
This figure is consistent with the overall trend of growth in tourism in Greece, with the country as a whole recording a record 36.9 million visitors in 2024.What is the expected return on a vacation rental in Athens?
The expected return on a vacation rental in Athens varies widely, depending on the property’s location and how it is rented: for short-term rentals (vacation and tourist real estate), the potential return can reach 8–12%.
It is important to note that the higher returns from vacation rental properties involve additional costs for operating the property and ensuring its ongoing maintenance.What is the average return on long-term rentals in Athens?
The average return on long-term rentals in Athens ranges from 3.45% to 7.71%, with the average standing at approximately 5.22% gross.
For apartments in central Athens, the gross yield is approximately 4.2% for 120-square-meter units, with smaller apartments yielding higher returns.
In the suburbs of Athens, the gross yield is slightly higher, at approximately 4.5%. It is important to note that the yield varies depending on the apartment’s size and location.
It is also important to take into account associated expenses and taxes when calculating the net return on investment in rental real estate in Athens.How many universities are there in Athens?
There are no fewer than 13 universities in Athens, with approximately 250,000 students enrolled.
Among the city’s leading academic institutions are the National and Kapodistrian University of Athens (NKUA), the National Technical University of Athens (NTUA), the University of West Attica, and the Athens University of Economics and Business (AUEB).
The various universities offer a wide range of programs in diverse fields and attract students from Greece, across Europe, and around the world.How many students study in Athens?
In total, there are over 250,000 students in Athens. In addition, Athens attracts students from all over Europe through a popular student exchange program.
The city is an important academic hub in Greece, with a wide range of higher education institutions and unique faculties not found in other regions of the country.
