A full salary for an apartment – Greece posts EU’s second-largest rental spike

Greece recorded the second-highest annual increase in rental prices (+10.1%) in the European Union in 2025, second only to Croatia, according to an analysis by the Centre for Liberal Studies (KEFiM).

At the same time, in Athens, the average rent for a one-bedroom apartment now accounts for 70.2% of the average monthly salary, while for a two-bedroom apartment the corresponding figure reaches 93.6%. The study is based on the latest available data from Eurostat and the Bank of Greece. It highlights the continued deterioration in housing affordability in Greece, at a time when both property prices and rents are rising faster than incomes.

Key findings

According to the study:

Across the EU-27, housing prices increased by 5.5% in 2025, while rents rose by 3.2%.

Greece recorded the second-highest rental increase in the EU at +10.1%, behind only Croatia (+17.6%). It is followed by Hungary (+9.8%), Bulgaria (+9.6%) and Romania (+8.2%). By contrast, the lowest increases were observed in countries such as Italy, France and Finland.

From 2000 to 2025, rents in Greece exhibited significant volatility: strong growth prior to the crisis (+53%), a sharp decline during 2011–2018 (-26%), stagnation until 2021, and a renewed sharp increase from 2022, surpassing 2010 levels by 2025.

Residential property prices followed an even more pronounced trajectory: near doubling between 2000 and 2008, a steep decline from 2008 to 2017 (-43% in Athens), and a rapid recovery from 2017 to 2025 (+86% in Athens), exceeding 2008 levels by 2025.

The housing cost burden on households in Athens is now disproportionately high compared to the EU average, as rents are at European levels while wages remain significantly lower. In particular, the rent-to-income ratio in Athens stands at 70.2% for a one-bedroom apartment and 93.6% for a two-bedroom apartment (2024), compared to 31%–34% and 46% respectively for the EU average.

Drivers of rent increases

According to KEFiM’s analysis, the sharp rise in rents in Greece is attributed to a combination of factors: increased demand driven by tourism and short-term rentals (e.g. Airbnb), limited supply of new housing during the crisis period, inflows of foreign investment into the real estate market—primarily due to the Golden Visa programme—the existence of a large number of vacant properties, and the broader economic recovery, which is boosting demand.

The core of the problem lies in the inability of housing supply to keep pace with the rapid rise in demand in recent years—an imbalance driven by a combination of both domestic and international factors. The severe credit contraction following 2008, the significant decline in incomes, the drop in housing demand during 2008–2017, the structural weakening of the construction sector, and rising construction costs have all rendered the recovery of building activity rather slow. According to KEFiM, it is therefore not surprising that supply growth significantly lags demand after a decade of underinvestment in the sector—and any fiscal intervention should be directed toward addressing this gap.

At the same time, the housing stock is ageing. Low levels of construction activity during the 2010–2023 period failed to offset depreciation, resulting in a contraction of the net housing stock and an increase in its average age.