Real Estate Prices in Greece - Perfect Time to Invest

If you have ever dreamed of purchasing an apartment or house in Greece, now is the perfect time to do so and make that dream a reality. The property prices in this country are still affordable, but they have been steadily increasing year after year. Rest assured, the value of Greek real estate is not expected to decline any time soon. 

In this article, you will discover valuable insights into the highest, lowest, and median prices of properties in the most sought-after regions of Greece. Furthermore, you will learn about the potential profitability of renting out your house or apartment with a bedroom and bathroom to foreign travelers, allowing you to maximize your investment.

Guide to Greek Real Estate Market

In 2023, Greece offers more affordable property prices compared to Spain or Italy, even when it comes to cottages and mansions. Just like its counterparts, Greece is situated along the picturesque Mediterranean coast, enjoying approximately 300 days of sunshine and fantastic weather each year. 

With a low crime rate, friendly locals, unspoiled nature, and a growing number of houses being built by local developers, Greece has much to offer. Indulge in delicious cuisine, experience excellent healthcare services, and immerse yourself in a rich and impressive cultural heritage, all while enjoying breathtaking sea views, such as those found in Mykonos. However, despite these advantages, Greece has not yet become a hotspot for residential real estate investment.

This presents a unique opportunity to acquire a house or apartment in this idyllic country at a fraction of its true value. If you choose to retire in Greece, you can benefit from a flat 7% tax rate, even if you’re not an EU citizen. Professionals looking to relocate should appreciate the 50% tax break. Renting out your property can also provide a steady profit. Nevertheless, you’ll likely want to take advantage of its charms for yourself.

Do you need help purchasing property in Greece? Our team of experts is here to provide comprehensive answers to all your inquiries.

Greece Visa Homes is your trusted investment advisory firm for Greece Golden Visa. Get personalized guidance from our experienced legal professionals, ensuring a seamless process for real estate and investment funds.

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Did the Pandemic Affect Real Estate Prices in Greece?

The local housing market has remained relatively unaffected by the COVID-19 pandemic. Although there was some initial confusion in 2021, the economy quickly rebounded. From January to September 2021, apartment prices saw an annual increase of 6.1%, applicable to both old and new properties. In the same timeframe of 2020, the growth rate stood at 4.9%.

Currently, Greece appears to be at the onset of a construction boom. Foreign investors, including developers, injected €797 million euros into the local economy from January to August 2021. Greece, along with France and the Netherlands, emerged as one of the three European countries responsible for approximately three-fourths of the Eurozone’s overall surge in property prices and development projects.

Historical Real Estate Prices in Greece

According to the Housing Index from the Bank of Greece, property prices in the country reached their highest point in the third quarter of 2008, only to be followed by a recession. Subsequently, property costs experienced a drastic decline of over 40%, hitting rock bottom in Autumn 2017.

Within a year, the country successfully emerged from the EU/IMF financial assistance program, leading to increased investments in the national economy and a subsequent rise in property prices. As of 2020, the average cost of a house or apartment remained 35% lower than the historical peak.

Read also our detailed guide on how to get a mortgage in Greece.

Athens Real Estate Prices

The capital city, adorned with townhouses lining the shoreline, has always been the coveted hub for both local and international investors. Despite the setbacks that have been caused by the pandemic and partially by Brexit, the city is swiftly rebounding. Anticipate a future where property prices soar even higher in this flourishing metropolis.

Presented here are the prevailing prices of houses in Athens, delineated per square meter:

If you decide to rent your property, you can expect the following monthly profit:

Based on a forecast, Athens is expected to maintain its position among the top 30 European cities with the most promising real estate prospects.

Corfu Real Estate Prices

Greece boasts approximately 230 habitable islands, ranging from the popular Rhodes to the picturesque Kefalonia. Discussing general real estate prices across all Greek islands would be impractical, as each location has its own unique characteristics to consider. However, one common feature among most islands is their appeal to American and European tourists seeking short-term holiday experiences, presenting an opportunity for real estate owners to generate income. If your preference is to immerse yourself in Greek culture rather than residing at a resort, exploring properties on the mainland should be a consideration.

Now, let’s delve into the current house prices in Corfu, measured per square meter:

Below is the projected monthly profit you can anticipate from renting out your property:

The real estate prices in Corfu reached their highest point in 2011, but by 2020, they had declined by 16% from that peak. Putting aside the financial context, Corfu remains an idyllic destination for a serene and contemplative vacation.

Crete Real Estate Prices

The real estate market in Crete experienced a downward trend until 2019. However, there has been a gradual increase in prices recently, as confirmed by local realtor agencies. Despite these positive developments, it is important to note that the market still has a long way to go in terms of recovery when compared to the peak indicators of 2011. This presents a favorable opportunity for those interested in purchasing property in Crete, particularly farmhouses or apartments.

Here are the current prices of houses on the island, per square meter:

If you prefer to rent out your property rather than occupy it yourself, you can expect to generate the following monthly profit:

Thessaloniki Real Estate Prices

This city in Europe is truly a picturesque gem, with a vibrant construction scene that continues to flourish. In the coming years, property and land costs are anticipated to soar, making it an opportune time to consider the following prices per square meter:

If you prefer to rent out your property, you can expect to generate the following monthly profit:

Santorini Real Estate Prices

Santorini, the exquisite luxury resort, is renowned as a premier holiday destination in Greece. With its breathtaking beach landscapes, it comes as no surprise that this idyllic paradise is among the most expensive locations in the country. Esteemed travelers from around the globe are enamored by its allure, ensuring a thriving local property market that remains resilient even in the face of the pandemic.

However, prospective buyers of houses, apartments, or villas with terraces in Santorini must be prepared to contend with higher tax obligations.

Below you can find the most recent house prices in Santorini (per square meter):

If you want to rent out your real estate, you can expect the following monthly profit:

How Much Are Houses in Greece?

Presented below are the prevailing housing prices in the country, per square meter:

And  the average monthly rental prices:

Greek Government Eliminates VAT on Real Estate Investment

Value-added tax (VAT) acts as a deterrent for foreign investors in foreign real estate markets. However, the current Greek government has taken a proactive step to address this issue. They have recently announced a three-year exemption from VAT on property investments. This significant change makes the Greek real estate market even more enticing to potential investors.

Greece’s GDP is projected to grow by over 2% this year. However, it is important to note that the country’s GDP is still around 25% lower than its peak back in 2007, prior to the significant financial crisis. Recently elected Prime Minister Kyriakos Mitsotakis, representing the center-right New Democracy party, has introduced a tax reform that has implications for all taxpayers in Greece. Nevertheless, the primary focus of this bill lies on individuals working in real estate.

Is it a good time to buy property in Greece?

Tax Reduction Goal to Reach 50% in Two Years

The Greek government has recently announced a significant reduction in property tax, aiming to lower it by a total of 30% within the first two years of their term. Additionally, they plan to introduce tax deductions of up to 50% for property renovation and investment over the next three years. Furthermore, a three-year tax holiday on real estate capital gains and VAT for construction-related activities will be implemented.

It is evident that the new tax bill will have a positive impact on Greece’s Golden Visa Program, particularly due to the provision that suspends real estate VAT for three years. Previously, a 24% VAT was applied to non-Greek buyers who did not use the property as their primary residence. However, with the new tax bill, this high percentage will be eliminated, leading to an inevitable increase in foreign interest in Greek real estate. Considering the recent rise in foreign investments in the Greek property market, it is predicted that the new tax bill will further stimulate a boom in foreign interest in the Greek real estate market.

With Greece’s Golden Visa Program, it’s the perfect time to enter the country’s real estate market

The real estate market has always been a prime choice for individuals capable of making substantial upfront payments. As an investment option, the real estate sector presents a lucrative opportunity, particularly during bullish market conditions. In recent years, the Greek property market has shown promising signs of recovery, and it is now more desirable than ever thanks to a new tax bill that includes a VAT pause.

This is an opportune moment to consider purchasing property in Greece for several reasons:

1. Property prices still remain significantly below their peak in 2006.
2. A three-year tax exemption on VAT and property-related capital gains has recently been implemented.
3. Chinese investor interest in Greece has reached an all-time high.

Seize the moment and capitalize on the advantages offered by the thriving Greek property market.

Companies Also Benefit from New Tax Bill

According to Kyriakos Mitsotakis, the proposed bill aims to empower the middle class while also implementing tax reductions for companies. The corporate earnings tax is expected to decline from the current rate of 28 percent to 24 percent next year, and further decrease to 20 percent by 2021. Additionally, taxes on dividends will be reduced from 10 percent to 5 percent in the upcoming year. These measures are designed to enhance the financial landscape while maintaining the essence of the original legislation.

Reduction Regarding the Individual Tax Payers

The tax scheme for individuals introduces a reduction in the lowest tax rate from 22 percent to an impressive nine percent. Simultaneously, the highest tax rate will decrease from 45 percent to 40 percent. It’s worth noting that the tax-free ceiling will remain steady at an annual amount of 8,636 euros.

Additionally, as previously mentioned, there will be a three-year suspension of VAT on construction activities. In terms of general VAT rates, they will experience a decline from 13 percent and 24 percent to 11 percent and 22 percent respectively. However, the lowest rate of 6 percent will remain unchanged.

Greece Real Estate Market Presents the Best Opportunity in a Decade

The latest data from the Central Bank reveals a positive trend in Greece’s housing market, marking a significant recovery after more than a decade. The country’s growing economy and increasing foreign interest have played crucial roles in this upward trajectory.

According to reports from Bank of Greece, apartment prices experienced a notable increase of 7.7% in the second quarter of 2019 compared to the same period the previous year. In Athens, specifically, prices soared by 11.1 percent year-on-year, boosted by the rising popularity of home-sharing platforms like Airbnb.

New Government is another Incentive for Investors

Kyriakos Mitsotakis, leader of the current government, is not only a Harvard University graduate but also possesses extensive experience in the finance sector in London. Under his leadership, foreign interest in the country has resurged, bolstering investor confidence. His qualifications and competence have earned him trust from both international and local business communities.

In an effort to cultivate investor trust and stimulate economic growth, the new government has implemented tax reductions and introduced new opportunities for all business sectors. Their policy prioritizes foreign investment as the driving force behind economic development, aligning with their goal to combine increased investor confidence with attractive tax incentives.

EU Bail-Out Program is Completed

In August 2018, Greece successfully completed the EU bail-out program, marking the official end of the country’s financial crisis. Over the past few years, the Greek economy has displayed robust signs of recovery and improvement. With last year’s GDP growth reaching approximately 1.8 percent, and the implementation of a new tax bill and reform program aimed at attracting foreign investment, the new government is poised to surpass a growth rate of two percent in the coming year.

Annual Property Taxes Are Reduced

Under the new bill, the current government has implemented a significant reduction in annual property tax averaging at 22%, effective from September 2019. This reduction is particularly favorable for small property owners, who will benefit from a 30% decrease, while middle-class owners will experience a 20% reduction. As a result, Greek real estate has become considerably more affordable compared to just a few months ago. In an effort to attract foreign investment, the Mitsotakis government has implemented substantial tax cuts, and it comes as no surprise that there is a growing interest from foreign investors in Greek real estate.

Why Invest in Greek Real Estate Market?

Compared to other European countries, Greece offers affordable property prices, making it an attractive investment opportunity. Additionally, real estate tends to be less volatile than the stock market. Let’s consider the Greek Golden Visa program as an example to support this perspective. Introduced in 2013, the program has facilitated over €2 billion in real estate acquisitions. The program entails purchasing a property, such as a condo, valued at €250,000 or more, which grants you a Greek residence permit. Notably, there are no in-country living requirements, and the permit application process can be completed in as little as three months. In contrast, other EU states typically require the purchase of higher-end properties to obtain residency.

The longevity of the program’s regulations remains uncertain. With the rising demand for properties and an increasing number of new owners, the Greek government may eventually raise the entry threshold. Therefore, it is advisable to act promptly in obtaining your residence permit.

Even if your intention is not to acquire a luxury house or apartment, the current opportune moment to invest in Greek real estate should not be missed before prices soar. Whether you plan to utilize it personally, resell, or rent it out, there are significant benefits to be gained from your purchase. Seize the present opportunity while Greek properties still offer relatively affordable options.