Best Locations in Greece for Real Estate Investment

Table of Contents

• Introduction
• Why Invest in Greek Real Estate?
• Top Locations for Real Estate Investment in Greece
• Athens
• Thessaloniki
• Crete
• Santorini
• Mykonos
• Rhodes
• Corfu
• Factors to Consider When Investing in Greek Real Estate
• Legal Considerations for Foreign Investors
• Financing Options for Real Estate Investment in Greece
• Future Outlook for the Greek Real Estate Market
• Conclusion
• FAQs

Introduction

Greece, with its rich history, stunning landscapes, and Mediterranean charm, has long been a favorite destination for tourists and investors alike. In recent years, the Greek real estate market has emerged as an attractive opportunity for both domestic and international investors. This comprehensive guide will explore the best locations in Greece for real estate investment, providing valuable insights into the market trends, legal considerations, and potential returns on investment.

As the Greek economy continues to recover from its financial crisis, the real estate sector has shown remarkable resilience and growth potential. With property prices still below pre-crisis levels in many areas, investors have a unique opportunity to capitalize on the current market conditions and secure prime properties at competitive prices.

Why Invest in Greek Real Estate?

Before delving into the specific locations, it’s essential to understand the compelling reasons for investing in Greek real estate:

• Attractive prices: Despite recent price increases, Greek properties remain relatively affordable compared to other European destinations.
• Growing tourism sector: Greece’s booming tourism industry provides excellent potential for rental income and property appreciation.
• Golden Visa program: Non-EU investors can obtain residency permits through property investments, making Greece an attractive option for those seeking European residency.
• Improving economy: As Greece’s economy continues to recover, property values are expected to rise, offering potential for capital appreciation.
• Quality of life: Greece offers a high quality of life, with its Mediterranean climate, rich culture, and beautiful landscapes attracting both tourists and long-term residents.

Top Locations for Real Estate Investment in Greece

Greece offers a diverse range of investment opportunities across its mainland and islands. Here are some of the best locations to consider for real estate investment:

Athens

As the capital and largest city in Greece, Athens presents numerous investment opportunities:

• Urban regeneration projects are transforming neglected areas into vibrant neighborhoods.
• The city center, particularly areas like Koukaki and Metaxourgeio, offers potential for short-term rentals and capital appreciation.
• Suburban areas such as Glyfada and Voula are attracting high-end residential developments.
• The Athens Riviera, stretching from Piraeus to Cape Sounion, is experiencing significant development and luxury property investments.

Thessaloniki

Greece’s second-largest city and a major economic hub in Northern Greece, Thessaloniki offers:

• A growing student population, creating demand for rental properties.
• Ongoing infrastructure projects, including the metro system, which are expected to boost property values.
• Attractive prices compared to Athens, with potential for significant appreciation.
• A vibrant cultural scene and proximity to beautiful beaches, making it appealing for both residents and tourists.

Crete

As Greece’s largest island, Crete offers diverse investment opportunities:

• Popular tourist destinations like Chania and Rethymno provide excellent rental income potential.
• The capital, Heraklion, offers a mix of urban living and nearby beach resorts.
• Rural properties and renovation projects in picturesque villages attract those seeking a more traditional Greek lifestyle.
• Luxury villas and resorts in areas like Elounda cater to high-end tourists and investors.

Santorini

Known for its stunning views and unique architecture, Santorini is a prime location for luxury property investments:

• High demand for exclusive villas and boutique hotels with caldera views.
• Strong rental yields due to the island’s popularity among international tourists.
• Limited land availability, which helps maintain property values.
• Potential for year-round income through off-season wellness and cultural tourism.

Mykonos

Mykonos, famous for its cosmopolitan atmosphere and vibrant nightlife, offers:

• Luxury villa investments with high rental potential during the peak summer season.
• Opportunities for boutique hotel developments catering to high-end tourists.
• Strong capital appreciation potential due to the island’s continued popularity.
• Growing demand for properties that blend traditional Cycladic architecture with modern amenities.

Rhodes

The largest of the Dodecanese islands, Rhodes presents diverse investment options:

• The Old Town of Rhodes, a UNESCO World Heritage site, offers unique renovation projects.
• Coastal areas like Lindos and Faliraki provide opportunities for holiday homes and rental properties.
• The island’s year-round tourism industry ensures steady rental income potential.
• Ongoing infrastructure improvements, including airport expansions, are enhancing the island’s accessibility and appeal.

Corfu

This Ionian island combines natural beauty with rich cultural heritage:

• The UNESCO-listed Old Town of Corfu offers renovation opportunities for period properties.
• Coastal villages like Kassiopi and Agios Stefanos are popular for luxury villa investments.
• The north-east coast, known as Kensington-on-Sea, attracts high-net-worth investors.
• Increasing interest from international buyers is driving property price growth.

Factors to Consider When Investing in Greek Real Estate

When evaluating potential real estate investments in Greece, consider the following factors:

• Location: Proximity to amenities, beaches, and tourist attractions can significantly impact rental potential and property appreciation.
• Property type: Consider whether apartments, villas, or commercial properties align best with your investment goals.
• Rental potential: Research the local rental market, including seasonal fluctuations and average occupancy rates.
• Infrastructure development: Look for areas with planned or ongoing infrastructure improvements that could boost property values.
• Legal status: Ensure the property has clear title and all necessary permits and certificates.
• Renovation costs: For older properties, factor in potential renovation expenses when calculating your total investment.
• Property management: Consider whether you’ll need professional property management services, especially for remote or rental properties.

Legal Considerations for Foreign Investors

Foreign investors should be aware of several legal considerations when purchasing property in Greece:

• Non-EU citizens must obtain a permit from the Ministry of National Defense for properties in border areas and certain islands.
• All property transactions must be conducted through a Greek bank account.
• A Greek tax registration number (AFM) is required for property ownership and tax purposes.
• Property transfer taxes and annual property taxes apply, with rates varying based on the property’s value and location.
• The Golden Visa program requires a minimum investment of €250,000 in real estate to qualify for a residency permit.

It’s highly recommended to work with a reputable local lawyer who specializes in real estate transactions to ensure compliance with all legal requirements.

Financing Options for Real Estate Investment in Greece

Financing a real estate investment in Greece can be done through various means:

• Cash purchase: Many foreign investors opt for cash purchases due to the relatively low property prices.
• Greek bank mortgages: While available, these can be challenging for non-residents to obtain and often have higher interest rates.
• International bank loans: Some investors secure financing from banks in their home countries, using existing assets as collateral.
• Developer financing: Some property developers offer payment plans or financing options, especially for off-plan purchases.
• Private lending: High-net-worth individuals may secure loans from private lenders or family offices.

It’s important to carefully consider the financing costs and terms when evaluating the overall investment potential of a property.

Future Outlook for the Greek Real Estate Market

The Greek real estate market shows promising signs for future growth and stability:

• Continued economic recovery is expected to drive demand for both residential and commercial properties.
• The tourism sector’s growth is likely to sustain demand for holiday homes and short-term rental properties.
• Government initiatives, such as tax incentives for property renovations, are encouraging investment in older properties.
• Increasing interest from international buyers, particularly in the luxury segment, is supporting price growth in prime locations.
• Ongoing infrastructure projects, including energy and transportation improvements, are enhancing the overall appeal of Greek real estate.

While the market has shown resilience and growth potential, investors should remain mindful of potential risks, such as changes in tourism patterns, economic fluctuations, and regulatory changes that could impact the real estate sector.

Conclusion

Greece offers a wealth of opportunities for real estate investors, with diverse locations catering to various investment strategies and preferences. From the urban regeneration projects in Athens to the luxurious villas of Santorini and Mykonos, there’s a property type and location to suit different investment goals and budgets.

The combination of attractive prices, strong rental potential, and the possibility of obtaining residency through the Golden Visa program makes Greek real estate an appealing option for international investors. However, as with any investment, thorough research, due diligence, and professional advice are essential to making informed decisions and maximizing returns.

As Greece continues its economic recovery and solidifies its position as a top tourist destination, the real estate market is poised for continued growth and appreciation. By carefully selecting the right location and property type, investors can capitalize on this promising market and potentially enjoy significant returns on their investments in the coming years.

FAQs

1. What is the minimum investment required for the Greek Golden Visa program?

The minimum investment required for the Greek Golden Visa program is €250,000 in real estate. This investment can be in one or more properties, as long as the total value meets or exceeds this threshold.

2. Are there any restrictions on foreign ownership of property in Greece?

Generally, there are no significant restrictions on foreign ownership of property in Greece. However, non-EU citizens must obtain a special permit for properties in border areas and certain islands. It’s advisable to consult with a local lawyer to ensure compliance with all regulations.

3. What are the typical property taxes in Greece?

Property taxes in Greece include a transfer tax (typically 3.09% of the property’s value) when purchasing, and an annual property tax (ENFIA) based on the property’s location, size, and features. The ENFIA tax can range from a few hundred euros to several thousand euros per year, depending on the property.

4. How long does the property buying process typically take in Greece?

The property buying process in Greece can take anywhere from 1 to 3 months, depending on various factors such as the complexity of the transaction, the efficiency of involved parties, and any potential legal issues. Working with experienced professionals can help streamline the process.

5. Is it possible to get a mortgage as a foreign buyer in Greece?

While it is possible for foreign buyers to obtain mortgages in Greece, it can be challenging, especially for non-residents. Greek banks typically have stricter lending criteria for foreign buyers and may offer less favorable terms. Many international investors opt for cash purchases or secure financing from banks in their home countries.

Article reviewed by Ariana Smit, Investment Portfolio Manager | Real Estate & Private Equity Expert | Driving High-Yield Investments, on March 3, 2025