Greece's real estate market is no longer moving at a single speed, but is splitting sharply along lines of geography, quality and property category, according to real estate consultant Philippos Apostolidis, speaking to the German broadcaster Deutsche Welle.
Apostolidis said the market now divides into two distinct categories: small investments of up to 250,000 to 300,000 euros, aimed at rental income or mixed use, and very high-value properties worth more than 700,000 euros, which attract a highly active clientele focused on lifestyle and location.
He said there is no longer a single Greek property market. Athens, Thessaloniki, Halkidiki and any given tourist island each behave differently, he said, and in some areas demand is shaped by buyers earning income in higher-wage countries. Apostolidis added that the effect now reaches beyond housing itself, saying that when a disproportionate share of income goes toward housing, it limits people's ability to spend, invest or start a family.
Middle Market Slows as Sellers Hold Out
The middle segment of the housing market is recording the sharpest slowdown, while negotiations over secondhand privately owned homes are gradually picking back up, according to the report.
A key point of friction, Apostolidis said, is the gap between what sellers expect and what buyers are willing to pay. He said the key to closing sales lies in what he called the psychological maturation of sellers, who often take longer to adjust to real market conditions than buyers, who tend to grasp the situation more quickly.
Construction Costs Choke New Supply
The shortage of new housing is directly linked to high construction costs, which are making it harder to develop new projects. Stricter energy and building standards have significantly raised the cost of building new homes, compounded by rising material prices and a shortage of construction workers.
Architect Alexandros Mavvidis said that when the combined cost of land and construction exhausts the purchasing power of the average buyer, development companies prefer to slow down new projects. He said this pattern is driving the shortage of new apartments and is preventing prices in the new-build market from easing.
Why Vacant Apartments Aren't a Quick Fix
The thousands of closed apartments across Greece are often presented as a solution to the housing crisis, but the picture is more complicated, the report said.
Apostolidis said many of these properties remain unused because of shared ownership and complicated inheritance disputes involving three, four or five co-owners. Renovation costs are also a deterrent, driven by the broader rise in construction prices. Mavvidis said that in several cases, particularly where sale prices are already high, the cost of buying and modernizing an old property can come close to the cost of a new one, making the whole process financially unattractive and pushing many buyers toward newer construction instead.
Golden Visa Rules Tighten, European Buyers Rise
The tightening of Golden Visa terms, along with recent government plans to raise the property transfer tax to 15% for buyers from non-European Union countries, is reshaping the landscape of foreign demand, according to the report.
Against that backdrop, the previous wave of strong interest from buyers outside the EU is showing signs of slowing, while the presence of European buyers, mainly from Germany, Austria and Switzerland, is increasing.
Remote Workers and Digital Nomads Move In
Beyond retirees and investors, interest is growing among remote workers and digital nomads who are choosing to settle in Greece. Dirk Reinhardt of the law firm MStR Law said these are people who keep their income from abroad but choose to live and work from Greece, taking advantage of available tax incentives.
Lawyer Ada Strongylaki, also of MStR Law, said a growing number of buyers are turning to ruined or abandoned buildings in remote settlements in the Peloponnese, Crete or on the islands, aiming to restore them historically and integrate smoothly into local life. She said the firm is seeing couples from Germany, Switzerland or Northern Europe arrange financing in their home countries and invest in restoring old buildings in Greece's regions.
Calls for Regulation and Reform
Some isolated initiatives favoring priority access for Greek buyers have also emerged, the report said. Nasos Michelis, a lawyer at MStR Law, said the Greek state and legal system allow the free sale of property, and stressed that excluding buyers based on nationality would conflict with both the Greek Constitution and European law. He said access to the property market cannot depend on a buyer's nationality but must follow rules of equal treatment.
Commenting on international practices, Mavvidis said measures such as rent caps, like those applied in Berlin, have proven damaging to investment and to the upkeep of building stock. He said any move in that direction would require great caution, detailed market analysis and consultation with all parties involved. He suggested Greece study good practices from other countries on affordable and social housing programs, and said institutional simplification, through full rollout of the Electronic Building Identity system, completion of the national Land Registry, and faster removal of property liens, is necessary.
The Greek property market is no longer in a phase of explosive growth but in a more mature phase of readjustment, according to the report. What comes next, it said, will depend not only on demand but on the country's ability to increase housing supply and apply policies tailored to the needs of each region.
