Real Estate Returns & Financing in Greece 2025
Real Estate Returns & Financing in Greece 2025
Financing and returns in the Greek property market: What delivers value today
In 2025, Greece’s real estate market remains one of the most attractive sectors for both domestic and international investors. Rental yields stay strong, sale prices continue to rise, and access to financing is finally improving after years of restrictions. But which types of investments truly perform — and which areas of Greece offer the best prospects?
The current market landscape
According to the Bank of Greece, residential property prices rose by 7.3% year-on-year in the second quarter of 2025, while rents increased by 7.2% in the same period.
Average gross yields from long-term rentals stand at around 4.5%, while short-term rentals reach up to 6% in prime locations.
This steady upward trend reflects strong investor confidence — yet it also raises entry costs, making the right financing choice and location selection more crucial than ever.
Financing and mortgage lending
Greek banks have re-entered the housing finance market dynamically, offering average mortgage rates around 3.8% and more flexible repayment plans.
Government initiatives such as the “Spiti Mou” (“My Home”) program continue to support young buyers up to the age of 39 with favorable loan terms and interest-rate subsidies.
Financing has once again become a growth driver for the property sector, enabling more buyers to enter the market — whether for homeownership or investment through rentals.
Yields by investment type
Long-term rentals
A safe option for investors seeking stability and consistent income.
In Athens, net yields average 4%–4.5%, while in Thessaloniki they reach around 5%, depending on location and property condition.
Short-term rentals (Airbnb, Booking)
Following new regulations by the Independent Authority for Public Revenue (AADE) and the Short-Term Rental Property Register (AMA), the market has stabilized.
Gross yields range from 6% to 7% in tourism hotspots such as central Athens, Crete, and Rhodes.
However, higher taxation and operating costs slightly reduce net profitability.
Holiday and investment properties
Holiday homes in Mykonos, Paros, and Santorini yield 5%–6% annually, with significant capital appreciation potential upon resale.
Foreign investors — particularly through the Golden Visa program — continue to fuel demand in this premium segment.
Golden Visa and international investor demand
Despite the higher investment thresholds (now €400,000–€800,000, depending on the zone), the Golden Visa remains a major driver of real estate activity.
Investors focus on high-quality properties mainly for long-term rental use.
According to recent data, 94% of investors utilize their Golden Visa assets as income-producing rentals — a factor that enhances market stability and rental supply.
Outlook for 2026
Analysts forecast a gradual slowdown in price growth, but sustained foreign demand.
The combination of tourism, digital nomads, and investment incentives is expected to support the market, keeping yields at attractive levels for both new and seasoned investors.
Conclusion
The Greek real estate market shows signs of maturity and resilience.
With financing improving and taxation stabilizing, investors can target balanced, mid-term returns across both urban and island markets.
Success will depend on choosing the right area, the right investment strategy, and ensuring professional property management.