Real Estate Investments in Greece (2025): A Comprehensive Guide to Athens, Thessaloniki & Beyond

In recent years, the Greek real estate market has emerged as one of the most attractive options for both domestic and foreign investors. Rising property prices, combined with higher yields compared to traditional savings products, make purchasing residential property one of the safest and most profitable ways to allocate capital. However, profit margins vary significantly by location and property type. This article examines the most sought-after neighborhoods in Athens and Thessaloniki, while also shedding light on other major cities across the country, highlighting where you can find the best opportunities.

The Case of Athens

Greece’s capital, with the growing international investment interest it attracts, shows comparatively higher returns than other cities. Central and suburban districts have evolved into “investment hotspots” due to renovation opportunities in older apartments, proximity to public transport, and increasing demand from students, young professionals, and families.

Research indicates that Athens averages around a 5.40% yield across the board, although this figure conceals considerable variation. More affordable areas, such as Patision – Acharnon and Kypseli can achieve yields of 7% to 8%, appealing particularly to those seeking smaller apartments that rent out easily and maintain lower operating costs.

Conversely, in Athens’s more prestigious districts like Kolonaki – Lycabettos, high land values and demand for upscale apartments result in lower yield rates, typically between 3% and 5%. This segment caters to wealthier tenants or investors aiming to preserve capital value in the long term.

Investment Opportunities in Thessaloniki

Although Greece’s second-largest city has a smaller overall market than Athens, Thessaloniki nonetheless offers noteworthy returns, averaging around 4.40%. Meanwhile, purchase prices remain more affordable, making this city ideal for those lacking the large upfront capital often required in Athens but still seeking respectable annual yields.

Districts such as Vardaris – Lachanokipoi and the broader center stand out with yields reaching or exceeding 6%, especially for one-bedroom apartments. On the other hand, pricier areas, including Faliro or Nea Paralia, are popular for student and professional rentals yet typically yield slightly lower returns, hovering around 4.5% to 5%.

Athens vs. Thessaloniki: The Big Comparison

Athens

Average Purchase Price (€) 309,500

Average Rent (€) 1,066

Average Yield (%) 5.40%

Thessaloniki

Average Purchase Price (€) 202,250

Average Rent (€) 707

Average Yield (%) 4.40%

All things considered, Athens offers higher potential returns for those able to handle its steeper purchase prices. Thessaloniki, however, boasts a lower “entry ticket” into real estate investing—an appealing factor for first-time or more conservative investors.

Other Cities and Their Potential

Many investors are exploring opportunities in other major Greek cities such as Patras, Heraklion (Crete), Kavala, and Volos. Property prices there are notably lower—usually ranging from €80,000 to €135,000 for a quality apartment—while yields tend to hover between 4% and 5.4%. Areas with large student populations or significant tourism often exhibit higher occupancy rates, further boosting profitability.

Which Type of Property Is the Best Deal?

Analysts emphasize that smaller apartments frequently deliver superior yields because:

1. They rent out more quickly, covering the needs of various groups (singles, students, young professionals).
2. They come with lower running costs, such as municipal fees and maintenance.
3. They require a smaller initial investment, making them a more flexible choice for the average investor.

Luxury or larger properties, while they may command higher rents, do not always produce proportionate returns due to substantially higher purchase prices and maintenance expenses.

Final Thoughts

Against the backdrop of low interest rates and steadily rising property values, Greek real estate is once again proving to be the “king” of safe investments. Examples from Athens and Thessaloniki, along with emerging opportunities in other key cities, underscore the vibrancy of the Greek housing market. Ultimately, choosing the right property—balancing location, size, and budget—is crucial to ensuring a successful investment.

Whether you’re looking for a renovated apartment in Athens’s center, a studio near a university campus in Thessaloniki, or a more budget-friendly option in another city, there seem to be more opportunities than ever. Proper market research, careful calculation of costs (purchase price, rent, management fees), and forward-looking potential resale value all go a long way toward making your investment stable and genuinely profitable.