An analysis of current market trends in Greece and Crete.
High property and rental prices
The property market has seen new builds becoming increasingly expensive yet highly sought after.
While construction activity is on the rise, the number of new homes available falls short of the current demand. This has led to a surge in prices that approaches record levels.
Since mid-2018, the continuous upward trend in property prices has raised concerns.
Not only has this escalation driven rents to unprecedented heights, but it has also widened the gap between property purchase prices and their assessed values.
This situation illustrates the challenges facing many potential homeowners in navigating a rapidly changing market.
Real Estate
Recent data shows significant trends in the real estate market, particularly regarding the prices of new and old apartments.
New apartments experienced a notable price increase of 9.1% in the fourth quarter of 2024. In contrast, older apartments saw a more modest increase of 4.9% during the same period.
The average price increase for new apartments throughout 2024 was 10.1%, a decrease from 12.9% in 2023.
For older apartments, the average growth rate in 2024 was 7.8%, down from 14.5% the previous year.
In terms of annual price changes across the country, the overall rate for apartments was 6.6% in the last quarter of 2024.
This figure varied based on the age of the property: new apartments reflected a 9.1% increase, while older ones displayed a 4.9% rise.
Geographic Price Variations
Location significantly impacts apartment prices. The annual price change varies across different cities, highlighting specific regional trends:
- Athens: 6.2%
- Thessaloniki: 8.2%
- Other major cities: 4.6%
- Other regions: 8.7%
These figures illustrate that while some areas are experiencing rapid growth, others remain more stable.
The demand in urban centres like Athens and Thessaloniki drives higher price increases, which affects many potential buyers and renters.
Rental Market Dynamics
The rental market is also feeling the impact of rising property values.
As purchasing prices for apartments increase, so do rental costs. Potential renters may face greater challenges in affording suitable accommodations.
This trend may lead to an increase in demand for rental properties in less expensive areas, as individuals seek to find affordable housing options.
Factors contributing to the rental market dynamics include:
- Increased demand for living space in urban settings.
- Higher prices for newly constructed properties.
- Limited availability of affordable housing options.
These elements can push rental prices higher, as tenants compete for a limited number of homes.
New vs Old Apartments
When looking at the distinction between new and old apartments, buyers should consider several aspects:
- New apartments often come with modern amenities and constructions that may lead to higher costs. They are generally more appealing to those seeking contemporary living conditions.
- Older apartments may offer lower price points but can come with maintenance issues or the need for renovations. These properties may appeal to budget-conscious buyers or those looking for charm in historical structures.
The Construction Sector
The construction sector is currently facing significant price increases for building materials.
In February 2025, there was a reported rise of 4% in overall material costs compared to the previous year.
This trend is causing prices for new homes and renovations to soar, making it increasingly difficult for the average person to afford a property in Greece.
Material costs have seen consistent upward movement, as illustrated below:
Material |
Price Increase (%) |
|---|---|
Plastic Pipes |
9% |
Heating Radiators |
8.8% |
Copper Pipes |
8.5% |
Bricks |
7% |
Electricity |
6.7% |
Switches |
5.9% |
Ready-Mix Concrete |
5.2% |
Synthetic and Fibre Cement Pipes |
4.9% |
Parquet Flooring |
4.6% |
General Tiles |
4.5% |
Acrylic Plastic |
4.4% |
Aluminium Frames |
4.3% |
Additives for Mortars and Concrete |
4.1% |
Cement |
3.7% |
Marble Slabs |
3.6% |
Solar Water Heaters |
3.6% |
Reinforcing Steel |
1% |
Diesel Fuel |
-5.2% |
Despite the slight decrease in the price of diesel, the overall increase in construction materials is squeezing budgets for new builds and renovations.
The price index from ELSTAT indicates a 4% rise in February 2025 compared to February 2024, slightly down from a 5.9% increase in the prior year.
As the situation stands, experts in the real estate market do not foresee a reduction in material prices anytime soon.
Many construction budgets are being revised upwards due to difficulties in obtaining financing from banks.
This means that what was initially priced in early project plans often diverges significantly from costs during construction.
Additionally, there is a growing concern regarding the availability of skilled workers in the construction trades.
This shortage results in higher wages for certain specialisations, further driving up the costs of construction.
The demand for skilled labour has become a pressing issue, complicating construction timelines and project budgets.
The golden visa programme presents an interesting aspect within the construction sector.
This initiative provides residency permits to foreign investors who purchase property above a certain value in Greece.
The influx of foreign investment can stimulate the housing market, but it may also contribute to rising property prices.
Thus, while the construction sector aims to meet increasing demand, this dual pressure from both local affordability and foreign investment creates a complex market dynamic.
Investors looking to benefit from the golden visa should be mindful of these market fluctuations as they plan their ventures.
Chania is one of the most expensive areas in Greece for buying property
The SPI index for the first quarter of 2025 records trends in property prices throughout Greece.
This index, part of a prominent real estate listings platform Spitogatos, gathers data from millions of actual property listings.
Recent reports indicate a significant rise in prices for both properties for sale and rent across the country.
During this period, the average requested selling price of homes increased by 8.8% compared to the same quarter in the previous year.
When compared to the fourth quarter of 2024, there was a modest rise of 3.1%.
For rental properties, the average asking prices showed an annual growth of 6.7% and a quarterly increase of 3.7%.
The launch of the housing programme “My House 2” in January 2025 seems to have stimulated demand for homes, especially in locations where properties meet the programme criteria.
Prices by Region
From top to bottom: South Athens, Cyclades, North Athens, Lefkada, Chania
Several areas in Greece are noted for their high property prices.
Currently, the Southern Suburbs of Attica top the list as the most expensive region for property purchase in the first quarter of 2025.
The Cyclades islands are in second place, continuing to attract interest from both local and international buyers.
The Northern Suburbs of Athens, recognised for their greenery and quality of life, follow closely behind, alongside the region of Lefkada.
Chania, a popular destination in Crete, ranks fifth, with an average asking price of €2,636 per square metre. This price reflects ongoing trends in the Greek real estate market, showcasing the area’s appeal to potential buyers.
The most favourable from top to bottom are: Kastoria, Kozani, Florina, Kilkis, Karditsa.
Rental Markets
From top to bottom: Cyclades, South Athens, North Athens, Athens Centre, Piraeus.
In the rental sector, the Cyclades lead as the most expensive areas for leases, boasting an average asking price of €14.2 per square metre.
This is followed by the Southern and Northern Suburbs of Athens, central Athens, and Piraeus.
Notably, Halkidiki maintains some of the highest average rental prices across the nation in the first quarter of 2025.
This can be attributed to its long tourist season and the variety of short-term rental options available.
The most favourable from top to bottom are: Kilkis, Theassaloniki, Pella, Kastoria, Imathia.
Summary of Data
This data illustrates the complex dynamics of the Greek property market, reflecting strong demand and varying price points across different regions.
Buyers and tenants alike are navigating a landscape marked by brisk activity and growing interest, spurred on by recent economic policies and local developments.
Investors seeking to stay informed can keep an eye on these trends by following reliable local reports and platforms dedicated to real estate analysis.
For those interested in the market in Chania, the data indicates a shift towards higher property values and increasing competition among buyers.
As urban development continues, Chania will likely remain a desirable option for home seekers and investors alike, maintaining its position in the competitive Greek property market.
In Heraklion 750€ rent for small flats
In Heraklion, rental prices have surged significantly, attracting attention for their high rates.
Many apartments, often described as subpar, are listed at staggering prices that seem unreasonable. For instance, a two-bedroom apartment in the city centre is advertised for €750 but spans only 45 square metres.
Another landlord is asking €700 for a studio apartment of the same size, marketed as a first-time rental.
In a slightly more economic offering, a two-bedroom flat outside the city walls on 62 Martiron Avenue is fully renovated, yet costs €700 for just 35 square metres.
Interestingly, on the same street, another landlord requests €700 for a two-bedroom apartment covering 40 square metres.
Unreasonable Demands
Many of the landlords’ requirements appear to be excessive, particularly for smaller units. These apartments often fail to meet the basic needs of a family.
Yet, numerous prospective tenants face difficulties finding suitable properties, causing them to relent and agree to such high rental prices.
The situation has become overwhelming for many searching for homes, as evidenced by long queues for properties priced reasonably.
Property Listings Overview
Here’s a closer look at some of the listings currently available:
Property Type |
Location |
Size (sq.m) |
Rent (€) |
|---|---|---|---|
Two-bedroom apartment |
City Centre |
45 |
€750 |
Studio apartment |
City Centre |
45 |
€700 |
Two-bedroom apartment |
62 Martiron Avenue |
35 |
€650 |
Two-bedroom apartment |
62 Martiron Avenue |
40 |
€700 |
Tenant Experiences
Many individuals seeking accommodation have shared their struggles in the current rental market. The pressure to secure a flat often leads to rushed decisions, as options are limited.
Tenants report doing extensive research and numerous viewings, only to find that many listings have unrealistically high prices or lack the necessary amenities.
For some, the desperation in finding a place to live prompts them to compromise on essential requirements.
This trend highlights the imbalance between demand and supply in the housing market of Heraklion, adding to the frustration experienced by potential tenants.
Discouraging news
Despite the challenging circumstances, there are reports of affordable options drawing crowds of interested renters.
Such listings have seen over 70 individuals vying for one property, showcasing the high demand for reasonably priced accommodation.
This situation has created a buzz in neighbourhoods, with residents remarking on the remarkable number of prospective tenants.
Crete was at the forefront of building permits in 2024
In 2024, construction activities remained largely focused on the Ionian Islands and Crete. Lefkada emerged as the leading region by a significant margin, followed by Zakynthos and Paros.
Lefkada took first place in terms of square metres tied to building permits for the year, boasting over 160,000 square metres of new development.
It was closely followed by the Municipality of Athens, Zakynthos, Thermi, and Glyfada for construction projects.
According to the Hellenic Statistical Authority, a total of 30,992 building permits were issued across the country, corresponding to approximately 7.28 million square metres of buildings.
The number of new permits saw an increase of 14.9% compared to 2023, while the area they covered rose by 16.8%.
Regional Overview
At the regional level, Attica maintained a strong lead, significantly surpassing other areas. It issued 2,549 new permits, linked to an impressive 1.7 million square metres of development.
Following Attica was the Central Macedonia region with 1,707 permits, amounting to 896,378 square metres. Crete had 1,591 permits issued, covering an area of 516,538 square metres.
Other regions with similar statistics included the South Aegean, noting 1,540 permits for 479,854 square metres, and the Ionian Islands with 1,495 permits amounting to 429,000 square metres.
Meanwhile, the Eastern Peloponnese region was on the lower end, recording 916 permits that covered 285,000 square metres. The Western Macedonia region had the least activity, with only 109 building permits issued, the same as the previous year, corresponding to a modest 60,832 square metres of construction.
Municipality Insights
In terms of municipalities, Lefkada again led the way. The municipality recorded 586 permits, of which 527 were for new builds and 59 for additions to existing structures. This corresponds to a total of 160,611 square metres of new construction.
Zakynthos followed with 420 permits, which included 110 for extensions, totalling 119,231 square metres of new development.
Other significant islands from the Ionian Sea included Corfu, which encompassed three municipalities and issued 364 new permits for 100,170 square metres, and Kefalonia, also with 364 permits but covering 73,538 square metres of development.
Construction Trends
The data reflects a broader trend of growth in the construction sector across the nation, particularly in popular regions like Crete.
Following favourable economic conditions, the construction market aims to attract investment and address housing demands.
This ongoing construction wave can potentially contribute to boosting local economies and enhancing tourism-related infrastructure.
While some regions are experiencing rapid growth, others like Western Macedonia remain stagnant in terms of new developments.
The differing levels of activity likely reflect variations in local demand, available resources, and regional planning policies.
Crete’s investment in infrastructure and development positions the island as a critical player in Greece’s burgeoning construction landscape.
The focus on both residential and commercial projects highlights the island’s importance not only for local residents but also for prospective investors and tourists alike.
As the building landscape evolves, it will be essential for planners and policymakers to monitor these shifts closely.
Strategic investment in housing and commercial spaces is vital for sustaining growth without compromising the island’s natural charm and appeal.
The insights from the latest statistics shed light on the mixed dynamics within the construction sector in Greece, illustrating how regions adapt and respond to changing economic conditions and societal needs. For more details on construction activity in Crete and nationwide trends, visit this link.
Frequently Asked Questions
What are the key reasons behind the rise in property prices?
Several factors contribute to the increase in property prices. Economic growth often leads to higher demand for housing.
Additionally, low interest rates make borrowing cheaper, prompting more buyers to enter the market.
Increased construction costs and limited housing supply also play significant roles in driving up prices.
How does inflation influence the housing market?
High inflation generally affects the housing market by raising costs for materials and labour in construction.
As a result, builders may pass these costs onto buyers, making homes more expensive.
Additionally, inflation can lead to rising wages, which may increase purchasing power for some buyers, further fuelling demand.
What are the predictions for the real estate market in the near future?
Experts are divided in their forecasts for the real estate market.
Some anticipate continued price growth due to high demand and limited supply, while others predict a potential slowdown as interest rates rise.
Seasonal trends, economic indicators, and government policies will also impact future developments.
How does the imbalance of supply and demand affect property values?
A significant imbalance where demand exceeds supply leads to higher property values.
When more people seek homes than there are available properties, competition intensifies, pushing prices up.
This imbalance can be seen in popular urban areas where housing construction struggles to keep pace with population growth.
What are the long-term effects of consistently rising property prices?
Sustained increases in property prices can create challenges for buyers, particularly first-time homeowners.
It may lead to affordability issues, pushing some individuals out of the market altogether.
Over time, this can also affect social dynamics and contribute to economic inequality, as wealth becomes concentrated among property owners.
What approaches can investors use in a rapidly increasing property market?
Investors should consider several strategies in a fast-growing market.
First, conducting thorough market research is essential to identify emerging areas with potential for value appreciation.
They may also focus on diversifying their portfolios to reduce risk.
Additionally, exploring options like rental properties can provide a steady income stream, even in fluctuating markets.
