Why Is Thessaloniki the New Hot Spot for Real Estate Investment?
Why Is Thessaloniki Emerging as an Investment Hot Spot?
Thessaloniki, Greece’s second-largest city, is not just a cultural and student hub—it has recently become a top investment destination for real estate. With lower prices than Athens but equally strong demand, the city is ideal for investors targeting both appreciation and rental income.
Student Demand & Short-Term Rentals
Thessaloniki hosts over 120,000 students, many of whom seek housing every September. Meanwhile, the rise in tourism and the development of city break culture have boosted short-term rentals (Airbnb). This creates constant demand for small apartments in the center and around Kamara, Rotunda, Ladadika, and Ano Poli.
Infrastructure and Investments Changing the Map
The operation of the new metro (2025), the redevelopment of the Thessaloniki International Fair, the anticipated ThessIntec project, and the port expansion create a dynamic scene of investment renewal. Areas near metro stations or new development projects already show increased demand and appreciation prospects.
Lower Entry Cost than Athens
One of the main reasons Thessaloniki attracts investors is the price difference: while in Athens the average cost per square meter in central areas exceeds €2,800, in Thessaloniki the average remains significantly lower. This allows investors to start with less capital, reducing investment risk and increasing returns.
The Buyer Profile Is Changing
Beyond locals, the city now attracts buyers from Cyprus, Israel, Germany, and the USA, who either want a vacation/tourist base in northern Greece or seek income through rentals. Most of them look for renovated apartments in areas that can offer stable occupancy and high ROI.
Areas of Investment Interest
Areas around Valaoritou, Monastiriou, Nea Paralia, Evzonon, and Ano Poli are gaining an investment “identity.” Prices are still accessible, rental yields are satisfactory, and future infrastructure promises value growth.
Conclusion
Thessaloniki is steadily transforming from a transit city to a magnet. The combination of high demand, stable population, student and tourist flows, and future investments make the city one of the most promising investment hot spots in the Greek real estate market.