Property Market Outlook for Greece
Insights for 2024 H2 and a Brief Forecast for 2025 H1
Executive Summary
In the latter half of 2024, Greece’s real estate market maintained its recovery, bolstered by moderate GDP
growth and robust foreign demand for prime residential properties. Retail and office markets experienced
price increases, while affordable housing remained a persistent challenge. Government initiatives provided
partial relief, with the market further benefiting from political stability and sustained foreign investment.
The property market performed well across the hotel/residential sectors, offices, and storage spaces, while
residential properties were deemed overvalued, and industrial spaces faced a decline. Key drivers included
strong demand for residential properties, tourism growth, and a steady influx of foreign capital. However,
rising construction costs, geopolitical tensions, and labor shortages continued to pose significant challenges.
Looking ahead to the next six months, the hotel/residential sector, storage spaces, and vacation homes are
expected to perform well, while industrial spaces are likely to underperform. This positive outlook is driven by
sustained occupier demand, tourism growth, technological advancements, and a shortage of quality stock.
However, challenges persist, including cost-of-living and affordability issues for locals, along with the slow
reform of the legal and town planning framework.
Economic Outlook
Economy
Economic activity is projected to grow by 2.1% in 2024, with similar growth expected in 2025 and 2026,
driven by the implementation of the Recovery and Resilience Plan (RRP). While unemployment, now
below 10%, is expected to continue declining, the pace will be slower than in the past. Inflation is
forecasted at 3.0% in 2024, gradually moderating to around 1.9% by 2026. The general government
deficit is expected to decrease further, supported by restrained expenditure growth. Combined with
strong nominal GDP growth, this trend is anticipated to steadily reduce public debt-to-GDP to nearly
140% by 2026.
https://economy-finance.ec.europa.eu/economic-surveillance-eu-economies/greece/economic-forecast-greece_en
According to the latest data from the Bank of Greece, net Foreign Direct Investment (FDI) inflows in
2024 reached €1.7 billion under residents’ external assets and €6.0 billion under residents’ external
liabilities, reflecting non-residents’ direct investments in Greece. In December 2024 alone, net flows
amounted to €204.5 million under residents’ external assets and €1.2 billion under residents’ external
liabilities. These figures highlight strong foreign capital inflows, demonstrating sustained investor
confidence in Greece’s economic outlook.
https://www.bankofgreece.gr/en/news-and-media/press-office/news-list/news?announcement=193c4e27-1e7b-469d-88e8-
7a67e43d6573&utm_source=chatgpt.com
GDP growth (2023) 2.3%
FDI, net inflows
(% of GDP) (2023)
1.9%
Apartment Prices
(2024 vs 2023)
7.8%
Office Prices
(2024 vs 2023)
2.3%
Retail Prices
(2024 vs 2023)
4.8%
World Bank: https://data.worldbank.org/country/greece
Bank of Greece: https://www.bankofgreece.gr/en/statistics/real-
estate-market/residential-and-commercial-property-price-indices-
and-other-short-term-indices
Market 2024
Sectors with strong performance
95 % 85 % 75 %
Hotels Offices Residential & Storage Spaces
H2 2024: Real Estate Market Performance
7,5/10*
*(rating 1 to 10, poor to excellent)
Market 2024
Overvalued Sector
• Residential
H2 2024: Key Trends in the Real Estate Market
Sectors with upward momentum
• Storage Spaces
• Hotels
• Second/Vacation Homes
Which sectors do you consider to have potential for improvement?
Declining Sector
• Industrial Spaces
Market 2024
H2 2024: Real Estate Market Drivers
Strengths
➢ High demand for residential, short-term leased, and
commercial properties
➢ Strong tourism growth
➢ Declining inflation rates
➢ Investment-grade credit rating
➢ Steady influx of foreign capital from investors and
individuals
➢ Political stability
➢ Imminent changes to the Golden Visa program
➢ Anticipation of lower financing costs
➢ Limited supply of quality stock, including premium
housing, commercial, and logistics properties
➢ High demand for scarce, sought-after properties
➢ Restricted land availability for large-scale developments
➢ Robust GDP growth and positive economic outlook
Challenges
➢ Airbnb restrictions
➢ Rising construction costs
➢ Geopolitical tensions and demand slowdown
➢ Labor shortages driving up construction costs
➢ Limited bank debt availability and high borrowing costs
➢ Adverse town planning decisions
➢ Global supply chain disruptions
➢ Controversial planning regulations and frequently
changing government policies
➢ High lending rates
➢ Global instability and slow progress in reducing interest
rates
H1 2025: Real Estate Market Performance Forecast
Market 2025
Sectors with the potential to strongly perform
Hotels Residential Second/
Vacation
Homes
Storage
Spaces Industrial
Spaces
poorly performance
Market 2025
Strengths
➢ Strong foreign demand for residences
➢ Positive Greek economic performance
➢ Macroeconomic and political stability
➢ Continued GDP growth and foreign capital influx
➢ Reduced interest rates
➢ Stronger dollar
➢ Ongoing occupier demand and tourism growth
➢ Growth in technology and Protech
➢ Shortage of quality stock
➢ Stable planning legislation
➢ Continued demand from foreign investors
➢ Support programs and incentives
➢ Stabilized unemployment rate
➢ End of the Ukraine war
Challenges
➢ Basel IV impact
➢ High inflation
➢ Gradual recovery of competitor markets and potential
diversion of foreign investment funds
➢ Cost of living and affordability issues for locals
➢ Slow reform of legal and town planning framework
➢ Inadequate infrastructure, particularly in Athens and
tourist areas
➢ Climate crisis and increased insurance costs
➢ Potential political instability
➢ Market uncertainty and geopolitical tensions
➢ Shortage of construction and specialized workers
➢ High construction costs
➢ Interest rate volatility
H1 2025: Real Estate Market Drivers Forecast
Real Estate & Development Committee
source: www.amcham.gr