Greece’s real estate market is no longer moving as a single story. The broad trend remains positive, but the factors shaping values, rents and investment potential are increasingly local. Location, property size, age, condition and permitted use are becoming more important in determining how each asset performs.
A recent market analysis highlights the pressures behind this divergence. Short-term rentals remain part of the housing discussion, but they are not the only explanation for rising costs and limited availability. High construction costs, a shortage of labour, restricted financing, demographic movement towards major cities and tourist destinations, and the number of homes that remain inactive all influence the balance between supply and demand.
For owners and investors, this creates a market of opportunities as well as requirements for greater selectivity. Modern homes in well-connected locations, properties with sound energy performance, and assets that can be renovated efficiently are likely to attract attention from a wider range of buyers and tenants. By contrast, a generic approach to pricing or investment is becoming less reliable as local conditions diverge.
The renovation of older apartments is therefore gaining strategic importance. It can offer a more accessible route into established neighbourhoods, improve energy performance and help return underused homes to the active market. The trend is especially relevant in cities such as Thessaloniki, where demand for practical, well-located homes continues to interact with a varied and ageing housing stock.
The next phase of the market will depend on whether investment momentum can be matched by more usable housing supply. For buyers, sellers and developers, the key is to assess each property on its own merits: the micro-location, technical condition, renovation scope, legal readiness and the depth of demand for that specific segment.
Original source: https://bnbnews.gr/en/data-amp-insights/41510/real-estate-the-5-factors-driving-prices-up-what-is-happening-with-airbnb-and-housing-supply/
