BoG cautiously positive on real estate market prospects
The Bank of Greece characterized the outlook for the Greek real estate market in the near term as “cautiously positive,” while at the same time recording a decline in foreign investment inflows.
In the annual report for 2025, it is noted that new uncertainties stemming from the war in the Middle East, combined with existing geopolitical tensions and shifting political balances, may weigh on investor sentiment and market developments. These conditions are shaping a more cautious investment environment, particularly with regard to cross-border placements. Data indicate that in 2025, net inflows for real estate acquisitions from abroad declined by 25.3%, amounting to 2,055.6 million euros compared to 2,750.3 million euros in 2024. At the same time, applications under the Golden Visa programme fell to 7,031 from 9,387 a year earlier, marking a decrease of 25.1%. This trend reflects prevailing international caution, without fundamentally altering the overall market trajectory.
Despite the decline in inflows, the market maintained its momentum throughout 2025 and into the early months of 2026, albeit at a more moderate pace compared to previous years. Buyer and investor interest remained active, while demand—particularly for residential properties—continued at elevated levels. At the same time, the supply of modern and affordable housing remained constrained, sustaining upward pressure on prices. Increased housing pressure in major urban centres, combined with the significant price growth recorded in recent years, appears to have redirected part of demand toward more affordable areas and older properties. This trend is also linked to the deterioration in housing affordability, especially for low- and middle-income households.
Investment interest was also observed in commercial real estate, particularly in sectors linked to tourism and hospitality, logistics and distribution, as well as high-specification office space. Companies and investors have increasingly shifted toward modern, energy-efficient assets, boosting demand for high-quality properties while reducing the relative attractiveness of older buildings.
In the residential market, apartment prices continued to rise last year, albeit at a slower pace than in the previous year. In 2025, the increase stood at 7.8%, compared to 9.1% in 2024. Older apartments recorded a higher rate of increase (8.1%) compared to newly built units (7.4%).
At a regional level, the highest growth rates were recorded in Thessaloniki (9.6%), other major cities (9.8%), and the rest of the country (8.8%). In Athens, the corresponding rate was lower, at 6.2%, indicating a relative normalization following the sharp increases of previous years.
