Real estate in Greece: the market is tired of high prices

Greek real estate market is entering a waiting phase: prices remain high, and buyers are increasingly constrained by mortgages and incomes.

Housing market in Greece is entering a phase of tired anticipation: prices remain high, sellers are in no hurry to reduce requests, and buyers are increasingly considering the monthly mortgage payment rather than their dreams of owning an apartment.

Key Findings

• Housing prices continue to grow, but transactions are slower.
• Mortgage rates in the eurozone, about 3–3.5% remain, making the purchase expensive for families with average incomes.
• IN Athenssouthern suburbs and tourist regions, asking prices remain at historically high levels.
• The main problem of the market is the gap between the expectations of sellers and the real purchasing power of citizens.
• If prices rise faster than wages, the market could see a further decline in the number of transactions.

First signs 2026 show: the Greek real estate market no longer looks like a non-stop elevator upward. Prices are still high, but buyers are increasingly unable to keep up. According to Τράπεζα της Ελλάδοςapartment prices in the country continued to rise in 2025, although the pace already looks more moderate than during the rapid market recovery.

In the third quarter of 2025, according to Τράπεζα της Ελλάδοςthe annual increase in apartment prices across the country amounted to 7.7%. IN Athens the figure was about 6.6%V Thessaloniki — 9.6%in other large cities – 8.9%. This is no longer a market of cheap opportunities, but a market where every square meter behaves as if it has a diploma in investment advisory.

Prices are rising faster than buyers’ patience

According to market data, at the end of 2025, asking prices for housing increased by almost 10%and rental rates are approximately 5%. In publication Business Daily with reference to index Spitogatos indicated that in the fourth quarter of 2025, the average asking price in southern suburbs of Athens reached 4,125 euros per sq.m. mon Cyclades – near 3,960 euros per sq.m. mand in the northern suburbs of Athens – about 3,380 euros per sq.m. m.

In reality, this means a simple thing: the seller is still looking at the market through the eyes of 2021–2024, when demand, foreign buyers, tourism, Golden Visa and a shortage of new housing pushed prices up. The buyer looks at his salary, mortgage, electricity bills, supermarket and understands that between him and the apartment stands not only a bank, but the entire modern Greek economy with the face of a tired accountant.

IN Athens areas like Elliniko, Glyfadas or Marusi have long gone beyond the scope of affordable housing for the average family. New or well-renovated properties are often offered in the range from 3,000 to 5,500 euros per sq.m. mand in tourist areas Cyclades prices often exceed 4,000–6,000 euros per sq. m. m. Even in simpler areas, the lower threshold has risen noticeably.

Mortgage: the main brake on the market

The second key factor is the cost of money. According to statistics European Central Bankin December 2025, housing loan rates in the eurozone, depending on the type of fixation, were approximately in the range 3.13–3.55%. For banks, this may look like “stabilization.” For a family, it’s like a payment that eats up too much of their income every month.

Mortgage loan in 150,000 euros on 20 years at a rate of about 3.5% gives a monthly payment of approximately 870–900 eurosdepending on the conditions, insurance and type of bet. Compared to the period when rates were closer to 1.5%the load increased by approximately 200–250 euros per month.

For a couple with net monthly income 2,000–2,300 euros such a mortgage can eat up almost 40% income. Formally, the bank can approve the loan. In practice, the family then begins to live not in the purchased apartment, but in a constant financial exercise: mortgage, food, energy, transport, possible rent for the transition period, children, unforeseen expenses. Surprisingly, for some reason people are not happy about the prospect of twenty years of discipline.

Transactions are slowing down, but prices are not falling

Many market participants are already recording that properties remain on sale longer, and buyers are negotiating more carefully. This does not mean a massive collapse in prices. Rather, we are talking about an adaptation phase: demand has become more selective, banks are more cautious, and sellers are not yet ready to admit that purchasing power does not have to follow their expectations.

The market faces a difficult set of factors: construction costs have increased, materials, energy and labor have risen in price, the supply of new properties in sought-after areas remains limited, and foreign buyers and investment funds continue to support prices in certain segments. As a result, housing becomes more expensive not only due to domestic demand, but also due to investment pressure.

Buyers of their first apartment are especially vulnerable. As long as prices rise faster than wages, owning your own home turns not into a normal stage of life, but into a risky financial project. This is no longer just the real estate market, but a test for the survival of the middle class, and without the right to retake it.

Tourism and investment have warmed up the market

Tourist properties, short term rentals and major refurbishment projects including Elliniko and new tourist complexes on the islands continue to raise the price bar. For investors it is an asset. For local residents, this is often the reason why an area where they have lived for years suddenly becomes “premium” and ceases to be affordable.

Investment funds are still looking for yield, especially in areas with strong tourist traffic. But expensive money also affects them: the higher the cost of financing, the lower the net profitability of projects. Therefore, in 2026, the market will depend not only on the demand of tourists and foreigners, but also on how quickly interest rates fall.

Even a rate reduction by 25–50 basis points may be of practical importance. For a loan in 150,000 euros this can reduce your monthly payment by approximately 30–60 euros. This is not a revolution, but in conditions of tight family budgets, sometimes this amount decides whether a deal becomes possible.

Construction is also at risk

A separate risk is associated with the construction sector, which has significantly contributed to the economic recovery in recent years. If the pace of transactions and new permitting begins to slow, the effects will be seen not only in real estate statistics, but also in investment, employment, construction companies and related industries.

Until the market crashed and turned down. But it’s clearly getting heavier. High prices, expensive mortgages and limited incomes create a situation in which sellers still want the most, but buyers can no longer pay what is expected of them. This is not a crisis in the classical sense, but the market’s fatigue from its own overheating.

Editorial comment

The Greek real estate market is at a dangerous point: prices are already too high for a large part of local buyers, but have not yet adjusted enough to return real demand. The government loves to talk about investment, construction and asset appreciation, but for the average family the main question is simpler: can you buy a home without turning your mortgage into a lifetime tax on hope?

If housing becomes available only to investors, foreign buyers and those who already own capital, the market ceases to serve a basic social function. It is becoming a showcase for well-being, with local shoppers increasingly standing outside. And this is no longer just a price problem. This is a problem for the future of cities, families and the middle class in Greece.

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