Why Greek house prices continue to rise despite market slowdown
New data from the Bank of Greece for the first half of 2026 shows a 5.5% increase in apartment prices, alongside a sharp drop in Golden Visa applications.
- Greek apartment prices increased by 5.5% year-on-year in the second quarter of 2026.
- High prices are sustained by limited supply of modern properties and rising construction costs.
- Golden Visa applications dropped by 52.2% in early 2026 following stricter terms and limitations.
For Israeli investors looking at property in Athens and across Greece, this is general information and not legal advice. The market shows a slower pace of price growth but a tight supply of modern homes. It is advised to carefully check purchase terms, potential renovation costs, and updated Golden Visa requirements before making any financial commitments.
Current Trends in the Greek Property Market
The upward trend in residential property prices across Greece continues, albeit at a clearly slower pace. According to data released by the Bank of Greece for the second quarter of 2026, apartment prices recorded an annual increase of 5.5%. This follows previous years of sharper price surges across the country.
Regional data indicates that the largest price increases during the second quarter were recorded outside Athens and Thessaloniki, showing a 7.1% rise in other areas of the country. In Athens, prices increased by 5%, while Thessaloniki saw a 4.7% rise. These figures highlight a broader trend where buyers seek out more accessible locations outside major metropolitan centers.
Core Factors Keeping Prices High
The primary factor supporting high price levels is the ongoing shortage of modern and affordable housing supply. Combined with rising construction costs—which remain significantly higher compared to 2021 levels—new development projects face delays, keeping property values elevated.
Meanwhile, housing loan volumes have increased due to government housing programs, though overall mortgage financing remains low compared to pre-crisis periods. In the commercial real estate sector, Athens continues to lead price and rent increases, with businesses actively prioritizing energy-efficient and modern spaces.
Impact on Foreign Investment and Regulation
Foreign direct investments for property purchases showed growth in the first quarter of 2026, yet the number of applications for the Golden Visa program moved in the opposite direction. Applications dropped by 52.2% in the first four months of the year following the introduction of stricter terms and regulations by authorities.
Bank officials note that addressing the housing shortage will require simplifying property transfer procedures and creating incentives to bring vacant or inactive properties back into the active market.
Yavanet will keep updating from official sources.
