“Greece Overtakes Turkey and Cyprus.” Why Greek Real Estate Is Booming and How to Make Money On It
“The Greek real estate market today is stability in an unstable world, where an investor can obtain citizenship, a steady income, and quality assets at reasonable prices,” says Demokrit Tersenov, CEO of Kyriakidis Development. In this interview, the expert explained why prices in Crete are growing faster than in Athens, how tax breaks are spurring demand for new buildings, and shared the secrets of successful investment in Greek real estate.
Price Increases and Regional Differences: Where to Make the Best Deals
— Democrit, what are the main trends in real estate prices in Greece in 2025?
— According to analytical forecasts, in 2025, the growth of prices for high-quality, liquid real estate will continue in almost all of Greece by 3-4%. The largest increase of about 6-7% is predicted for large islands with accessible year-round full infrastructure, such as the island of Crete. This is not a coincidence — islands with developed infrastructure are becoming real magnets for investors. They offer what is valued most today: stability, beauty, and the opportunity to earn income all year round.
— Is a slowdown in price growth expected or vice versa? How is this situation in Crete?
— It is safe to assume that there will be no slowdown, but rather an increase in prices. In Crete, real estate prices increased in the first quarter of 2025, especially in popular areas such as Chania and Rethymno.
The numbers speak for themselves:
- Chania: the average price of residential property has increased by 14.6% compared to last year.
- Rethymno: the average price of residential property has increased by 9.3% compared to last year.
- Lasithi: an increase of 7.4%.
- Heraklion: the most restrained dynamics, an increase of about 6.4%.
Interestingly, even the most “calm” region of Crete shows growth above the national average. This suggests that the island is experiencing a real investment boom.
— Let’s compare prices in different regions of Greece.
— The picture is very interesting and sometimes paradoxical. The island of Crete shows an average price in offers for sale of houses — 3650 euros / sq. m, apartments — 3450 euros / sq. m. For comparison, the Aegean Islands are more expensive — the average price of houses there is 3855 euros / sq. m.
But here’s what surprises many: Athens is cheaper than the islands today! The average price of houses in the capital is 2850 euros / sq. m, apartments — 3171 euros / sq. m. But the suburbs of Athens are already more expensive: houses — 3334 euros / sq. m, apartments — 3886 euros / sq. m.
The most affordable prices are in Thessaloniki and its suburbs: houses in the city itself — 2705 euros / sq. m, and in the suburbs — only 1990 euros / sq. m with the price of apartments at 2705 euros / sq. m. m. Corfu Island occupies an average position with house prices of 2553 euros/sq. m.
— Which regions of Greece are the most attractive for investment in 2025?
— In 2025, the following regions may be attractive for investment in Greek real estate:
- Islands with full and high-quality year-round infrastructure, which are of great interest to tourists from all over the world with medium and high incomes. These include, first of all, Crete, the Chania region, according to all criteria.
- Medium-sized cities with developed infrastructure. Also, student cities such as Larissa, Volos, Kavala are distinguished.
- The Chalkidiki Peninsula and the agglomeration of the city of Thessaloniki.
Residential properties for sale in Greece
Golden Visa and the Tourism Boom: How External Factors Shape the Market
— How does the Golden Visa program (with a threshold of €250,000 or €400,000 depending on the region) affect the influx of foreign buyers?
— The Golden Visa program has a significant and positive effect on the influx of foreign buyers, although in large cities the time for processing and obtaining a 5-year residence permit takes 2–3 times longer due to huge electronic queues than, for example, in Crete and in peripheral regions. This creates an interesting situation: many investors specifically choose regional projects not only because of the price, but also because of the speed of document processing. Crete is an ideal option in this sense.
— Given the growth in tourist flow, how does tourism affect the real estate market?
— The annual dynamic growth of tourist flow has a positive effect on the real estate market in Greece, including Crete. It creates a high demand for housing and related goods and services. This makes investments in the Greek hotel business and real estate attractive. The figures are impressive: based on data from the Institute of the Hellenic Tourism Confederation (INSETE), in May 2025, the number of available places for short-term accommodation in Greece exceeded one million, which is 9.5% more than in the same period of 2024.
— Is there an increase in demand for short-term rental properties in Crete?
— Of course! Short-term rentals are becoming an increasingly popular and predictable investment. But the traditional long-term housing stock is holding its ground.
Crete is seeing an increase in demand for short-term rental properties, which is confirmed by the sharp rise in property prices in popular areas of the island, such as Chania and Rethymno. This is a direct correlation — where there are tourists, there is investment attractiveness.
Tax Incentives and Their Impact on Investment Attractiveness
— What tax breaks are in place in Greece now?
— Among the tax concessions from the state, one can note the exemption of new buildings from VAT until December 31, 2025. This gave the real estate market an additional stimulus and resulted in an increase in demand and real sales, including in the category of deferred demand.
There is also a three-year exemption from income tax for housing that is leased out long-term. This is especially attractive for investors who consider real estate as a source of stable income.
— Which properties in Greece are most in demand among buyers?
— The most popular format remains apartments in small new apartment buildings with accessible year-round infrastructure, ready-made new villas and construction of villas according to individual modern projects, ready-made operating commercial properties, including aparthotels with management, projects of large modern 5-star hotels, etc.
The trend is obvious: people want ready-made solutions that will immediately start generating income.
Investment Strategies: From Short-Term Rentals to Commercial Projects
— What is the average rental yield in Greece?
— Rental yield in Greece directly depends on the management method and the degree of personal involvement and participation in the process. Undoubtedly, rental real estate is a sought-after liquid product with a stable income and annual increase in value.
— Is the profitability in Crete different from other tourist regions?
— The islands of Mykonos and Santorini are different and inferior to Crete, in particular Chania, with a higher entry threshold and a limited segment of offers. Crete offers the optimal combination of accessibility and profitability.
— What legal nuances should foreign buyers take into account?
— There are no special nuances for foreign buyers in Greece in 2025. The purchase and sale transaction, as before, can be carried out either through your own account in a Greek bank, or you can directly transfer funds from abroad to the account of the seller-developer.
— How developed is the practice of remote purchasing?
— Every year, the share of transactions with foreign buyers carried out remotely increases exponentially. Digitalization of processes makes investing in Greek real estate increasingly accessible to clients from abroad.
— What makes Greece attractive for long-term investment in the period 2025–2030?
— The attractiveness of long-term investments in Greece, especially in Crete, is stability and predictability, a multiple increase in the volume and geography of tourist flows, state and European programs to stimulate and support development.
Add to this the possibility of obtaining a residence permit for 5 years under the program “Golden Visa Greece” with the possibility of extension, a wide choice of properties and affordable prices compared to other Mediterranean countries, preferential tax policy for investors, high investment potential and rental income.
And finally, this is a comfortable environment for living and doing business with a mild Mediterranean climate, developed tourist infrastructure with the longest swimming season and the cleanest beaches. All this creates ideal conditions for those who think not only about profit, but also about the quality of life.
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