Students – Tourists – Investors: The New Key Players in Greece’s Housing Market

The Greek housing market in the summer of 2025 is shaped by three parallel trends: a sharp rise in student rental prices, increasing property values in popular island destinations, and the continued influx of foreign capital into the purchase and exploitation of vacation homes. Recent data and analyses highlight how demand from students, tourism dynamics, limited housing supply, and the transformation of homes into financial assets are redefining the landscape.

Student Housing – Spitogatos Report (July 2025)

With university entrance exam results recently announced, the hunt for student housing is in full swing. According to Spitogatos Insights, the average asking rent for student housing rose by 7.4% in Q2 2025 compared to the previous year. Key decision factors include floor level, furnishing, number of bedrooms, as well as growing interest in energy efficiency and air conditioning.

• Athens (Attica): Average rent increased by 5.4%. The lowest prices are in Nikaia (9 €/sq.m.), with a 65 sq.m. flat costing ~€500/month. In contrast, Mets, Koukaki, and Kolonaki range from €13 to €16.5/sq.m. In Zografou, a typical student flat costs around €534.
• Thessaloniki: A 10.9% increase in average rent was recorded in Q2. Cheaper options lie in Stavroupoli and Evosmos, while the most expensive are in the city center and the Evangelistria area.
• Rest of Greece: Affordable student rentals are found in cities like Drama, Lamia, and Kastoria. Tourist-heavy cities such as Chania, Corfu, and Rethymno have higher prices, with notable hikes seen in Florina, Sparta, and Chania.

Summer Homes – Geoaxis Report (Q2 2025)

For the eighth consecutive year, median asking prices for summer homes have increased across five popular Greek islands. Price differences between luxury and standard homes are substantial:

• Mykonos & Santorini: Luxury homes can cost up to 5.6x more than typical ones.
• Serifos: This ratio drops to 2.4x, suggesting a more modest price gap.

Median Property Sizes:

• Mykonos, Paros, Kea: ~240 sq.m.
• Santorini: 170 sq.m.
• Serifos: 120 sq.m.

Price Growth (YoY):

• Mykonos: +5.71% (€16,000/sq.m.)
• Santorini: +5.49% (€13,292)
• Paros: +4.53% (€9,499)
• Kea: +6.31% (€6,216)
• Serifos: +5.78% (€3,827)

Mykonos tops the 10-year growth chart with a +32% increase. Despite a shaky tourist season start (earthquakes, geopolitical tension), high demand has sustained prices, though slower growth is expected unless a major negative event occurs.

Economic Footprint of Foreign Purchases – Elxis Analysis (July 2025)

According to Elxis – At Home in Greece, selling a new 120 sq.m. vacation home (with pool and garden) to a foreign buyer can generate €1.09 million in economic benefit over ten years.

Breakdown:

• Purchase Costs: €440,040 (including purchase price, taxes, legal & agent fees)
• Local Spending & Maintenance: €651,500 over 10 years

Foreign buyers typically occupy the home 7 months/year, renting it out for 12 weeks. Their presence fuels local economies via direct spending, maintenance costs, and tourism activity.

Annual Local Impact: Over €65,000 10-Year Local Impact: ~€650,000

The effect spans regions from Crete and Rhodes to the Peloponnese and even less touristy locales, benefiting a wide array of professionals from construction to hospitality and real estate services.

Luxury Real Estate Trends – Premier Realty Greece

The Greek buyer of luxury homes is evolving—from emotional purchases to strategic investments. Luxury properties are no longer just status symbols; they are seen as life choices and financial assets.

• Key Areas:
  • North Athens: Kifisia, Politia, Ekali retain high value.
  • South Athens: Voula, Vouliagmeni, Elliniko thrive due to redevelopment.
  • Cyclades: Combine residential and rental yield potential.

Price Range:

• Typical deals: €800,000 to €2 million
• Premium homes: Over €2.5 million Returns: 4–6%, depending on use and location

Demand from domestic buyers is increasing, driven by economic uncertainty and long-term planning. Luxury homes are being used as main or secondary residences, short-term rentals, or future assets for children.

A Dynamic and Multifaceted Market

The Greek housing market in summer 2025 is under pressure but also undergoing transformation:

• Student rental hikes reflect the shortage of affordable urban housing.
• Island property value growth strengthens the investment narrative.
• Foreign investors bring capital and opportunities, but also raise sustainability questions.
• Homes are no longer just shelters—they are investment tools.

Balancing housing as a social need with its investment potential will define Greece’s real estate future.

Source: pagenews.gr