The Greek real estate market is entering a new phase of balance, with the pace of new-build price growth decelerating noticeably.
New-Build Price Growth Slows
According to the Savills Greece annual residential market report, new-build apartment prices in Athens rose by 18.4% over the 2023-2025 period, a clear deceleration from the 28.5% increase recorded in the preceding 2021-2023 cycle. Savills estimates that the market is approaching the upper limit of affordability for a large segment of buyers. With average asking prices starting from 4,000 EUR/sqm in the southern suburbs and 3,500 EUR/sqm in the north, buyer interest is increasingly shifting toward older and more competitively priced properties. In Greater Athens, prices for older apartments rose by 5.7% in 2025, marginally outpacing the 5.3% growth recorded for new builds. The contrast is even sharper in Thessaloniki, where older stock appreciated by 10.1%, compared to just 6% for new-build properties.
European Commission Formally Flags Greece Housing Crisis
In its latest European Semester report, the European Commission classified Greece housing crisis as one of the most serious socioeconomic challenges facing the country. Greece ranks among the EU member states with the highest housing cost burden, with a significant share of households spending more than 40% of their disposable income on rent or mortgage repayments. The Commission identified contributing factors including limited construction activity over the past decade, a large stock of ageing buildings, a high number of properties not used as primary residences, and the rapid expansion of short-term rental platforms such as Airbnb. The Commission explicitly rejected rent caps and demand-side subsidies, instead focusing on supply-side measures: public investment in new social housing, urban regeneration, and simplification of permitting frameworks.
What This Means for the Market
For investors and buyers, the current environment presents a compelling opportunity. The slowdown in new-build prices does not signal a market collapse, but rather a maturation. Older properties, particularly in cities like Thessaloniki, are emerging as attractive investment targets with strong appreciation potential and lower entry costs. The European Commission formal recognition of the housing crisis is expected to accelerate policy reforms that may create new opportunities for investors active in building conversion and adaptive reuse.
Sources: Ekathimerini.com - New house rates drop a gear (19 June 2026): https://www.ekathimerini.com/economy/real-estate/1307126/new-house-rates-drop-a-gear/ | BostonGreeks.com / European Commission - Greece Housing Crisis Flagged as Major Socioeconomic Challenge (24 June 2026)
