Residential Real Estate in Greece: Trends & Investment Potential

Greece has become one of Europe’s most exciting real estate destinations, attracting investors, expats, and lifestyle buyers who are drawn to its blend of economic stability, cultural appeal, and Mediterranean lifestyle. With the economy projected to grow by 2.3% in 2025 and continuing steadily through 2026, the country offers a solid foundation for those looking to enter the property market. 

This momentum is underpinned by the Recovery and Resilience Plan (RRP), a major program driving investment in infrastructure, digitalization, and sustainability. The benefits extend well beyond construction, boosting demand for modern housing, short-term rentals, and commercial spaces. Meanwhile, unemployment has dropped below 10% for the first time in years, and inflation is on a downward path. 

On the fiscal front, Greece is turning the page on its debt story. The government deficit is shrinking, and debt-to-GDP is expected to fall to around 140% by 2026, thanks to disciplined spending and strong nominal growth. This financial stability enhances the country’s attractiveness, contributing to a recent investment-grade credit rating upgrade that places Greece firmly back on the radar of global investors. 

Foreign Investment Confidence
Investor sentiment is reflected in strong foreign capital inflows. Bank of Greece data show that foreign direct investment (FDI) rose nearly 42% in the first half of 2025, compared to the same period in 2024, as stated in ekathimerini.com. According to the Bank of Greece, net Foreign Direct Investment (FDI) in 2024 totaled €1.7 billion in external assets and an impressive €6.0 billion in external liabilities, representing non-residents’ direct investment into the country. December alone saw inflows of €1.2 billion, underlining the resilience of international interest in Greece. 

These figures speak volumes: investors are not only optimistic about Greece’s economic trajectory but also recognize real estate as a key driver of future growth and underline the resilience of international interest in Greece. 

What’s Driving the Market right now? 
The second half of 2025 has found the Greek property market shaped by a unique mix of demand, stability, and opportunity. Residential, short-term leased, and commercial properties remain highly sought after, particularly in major cities like Athens and tourist hotspots, while the tourism boom continues to push demand for vacation homes and luxury villas at the coastal areas to record levels. 

At the same time, Greece’s recent upgrade to investment-grade status, combined with ongoing political stability -especially in turbulent periods globally, largely due to geopolitical shifts- reassures both domestic and foreign buyers that the market is safe for long-term commitments. Investors from regions experiencing political turmoil tend to seek safer and more stable investment destinations, and Athens fits this profile well. The Golden Visa program, which has been a magnet for international investors, is also driving a fresh wave of interest ahead of anticipated changes. 

Yet one of the defining features of the current market is the limited supply of quality stock. Premium residences, modern commercial properties, and logistics hubs are scarce, fueling competition and price appreciation. Land availability for large-scale projects remains restricted, particularly in urban and coastal areas, which only increases the value of properties in prime locations. 

The Shift Toward Sustainable Living in Real Estate
Greece’s property market is witnessing an increasing focus on sustainable architecture. As environmental awareness grows worldwide, Greek developers with MIBS Group being a typical example, are integrating energy-saving designs and eco-conscious construction methods into their projects. Today’s buyers are actively seeking homes equipped with green solutions such as solar energy systems, advanced insulation, and environmentally friendly materials. This preference not only influences demand and property values but also shapes long-term investment strategies. The movement is further reinforced by government initiatives and EU-funded programs that encourage the adoption of sustainable building practices, 

The Digital Revolution in Real Estate
The property sector in Greece is also undergoing a technological evolution, redefining how people search for and experience homes. Smart-home integrations—ranging from automated lighting and climate control to advanced security systems—are becoming standard expectations rather than luxury add-ons. At the same time, digital tools such as virtual reality are reshaping the way properties are marketed. Prospective buyers can now “walk through” a residence online and for sellers and agents, adopting these technologies is no longer optional—it’s a crucial step toward engaging modern, tech-savvy audiences and standing out in a competitive market. 

Investment Potential: Why Now? 
For those weighing where to invest in Europe, Greece stands out as both affordable and promising. Property values, while rising, are still lower than in Portugal, Spain, or Italy, leaving room for significant appreciation. Combined with healthy rental yields, this makes Greece a highly attractive option. 

Prime areas such as Athens’ city center, the Athenian Riviera, Thessaloniki, and islands like Crete, Mykonos, and Rhodes are in particularly high demand. Buyers are not only securing holiday homes but also generating steady rental income from Greece’s flourishing tourism industry.