Are Greek real estate prices peaking — or is there still room for growth in the rally that’s defined the past few years?
Market insiders say a gradual cooling of apartment prices is beginning to take hold across Greece. Yet, according to the European Commission, warning signs of a potential “bubble” are emerging. Brussels estimates that housing prices in Greece are up to 20% higher than what the country’s economic fundamentals justify, such as household income, borrowing costs, and overall economic performance.
A new ECOFIN 2025 report, “Housing in the European Union,” shows that home sale prices in Greece have surged by more than 60% since 2018, while rents have soared by over 45% during the same period — a rise that has significantly outpaced wage growth.
Still, the Bank of Greece remains cautiously optimistic. In its Financial Stability Report, it notes that the upward trend in the housing market continued through the second quarter of 2025, spanning both new and older properties, though price movements vary by region.
Specifically, apartment prices rose 7.3% year-on-year in Q2 2025, surpassing their previous historic peak set in 2008.
Regionally, the most dynamic growth was recorded in Thessaloniki and other parts of Greece, both at 8.8%, while Athens posted a 5.9% annual increase. The capital’s price index reached 112.2 in Q2 2025, exceeding the 2008 peak by 10.8 points.
Continued Momentum Ahead
According to the central bank, the upward trend is likely to persist in the near term, fueled by strong domestic and foreign demand and a limited housing supply.
That supply constraint stems from several factors: the growing investment use of housing, the withdrawal of properties linked to non-performing loans ahead of foreclosure auctions, and the sharp drop in new housing construction between 2010 and 2020, which left the market struggling to replenish its inventory.
It’s unclear whether Greece’s real estate boom is a bubble or a lasting opportunity — but after years of decline, the market has clearly bounced back and is setting new records.
