According to current data, the real estate market in 2025 will follow a two-speed trajectory. Under the expanded “My Home II” program, there is expected to be a shift toward older apartments by those eligible for financing, aiming to meet their housing needs. However, there remains the investment side of the market, which concerns fewer people but is focused on specific areas where prices have risen significantly in recent years. Simultaneously, studies indicate a slight decline in demand, paired with a reduction in housing supply, which is anticipated to balance prices.

A Return to the ’70s

Apartments from the 1970s in Athens and Thessaloniki are regaining their former glory. These half-century-old homes are the most abundant (55% of apartment buildings and single-family homes in Greece were built before 1980) and are drawing the greatest interest from buyers due to the “My Home II” program, as they seek economical options that meet the program’s requirements.

With Greece’s real estate market remaining under pressure—supply being particularly limited compared to demand, which is about twice as high—the government’s housing program, offering favorable financial terms for young people and couples aged 25-50 to purchase their first home via subsidized loans based on income and family status, is expected to further invigorate the market in 2025. This is especially true in popular areas and in the price range of €120,000–€250,000, which is estimated to attract most program participants.

On the other hand, some buyers, who do not anticipate benefiting from the “My Home II” program, are turning their attention to newly constructed and especially “green” properties. This is driven by upcoming energy efficiency mandates; between 2028 and 2032, no property can be rented or sold without energy upgrades.

Focus on “My Home II”

Real estate market experts believe that focus will shift toward participants of the “My Home II” program, serving as a buffer against potential signs of market fatigue expected in the coming period.

Such signs are documented in the study “The Barometer of the Real Estate Market – What Greeks Expect,” conducted by the University of Macedonia for real estate entrepreneur and consultant Ilias Papageorgiadis. This study reveals dynamic changes in the Greek property market. For the second half of the year compared to the previous one, it notes a decrease in the percentage of prospective buyers, from 28% to 22%, alongside a drop in sellers, from 9% to 7%.

Among potential buyers, 69.5% aim to purchase to meet housing needs, while 29% are interested in investment opportunities. Only 15% of these buyers plan to acquire a property soon or within the next six months, while the majority (39.5%) foresee such a purchase in the distant future, 26.5% within three years, and 17.5% within a year.

Most prospective buyers (71%) are looking for properties priced between €50,000 and €200,000, while 11.5% aim for properties between €200,000 and €300,000, and just 4.5% are interested in properties exceeding €300,000.

The “Real Estate Barometer” also highlights changes in the profile and motives of sellers, as the percentage of those selling because they believe prices have peaked has doubled. Conversely, the proportion of sellers seeking liquidity from sales has dropped from 47% to 31%, while those selling to reinvest in other properties decreased to 30% from 34.5%.

Despite skepticism from 66% of respondents who view price increases as “irrational” or a “bubble,” 51% expect prices to continue rising. Notably, 55% predict an increase in the prices of older homes, and 75% foresee a rise in newly constructed properties.

According to Mr. Papageorgiadis, as presented during the “Greece 2025: Business, Real Estate, Investments” event, the “My Home II” program is expected to act as a barometer for property values. Residential properties valued up to €200,000, influenced by the program, are expected to attract the most interest, translating into increased demand from new buyers and investors alike, driving prices higher. Prices are expected to stabilize—but not drop below May 2025 levels—after the program ends. A critical factor influencing future price and rental trends will be whether owners of vacant properties decide to make them available on the market.

Properties in the €200,000–€400,000 range are expected to maintain attractiveness, especially those between €200,000 and €250,000, as they remain within the limits of the “My Home II” program. However, properties priced between €250,000 and €300,000 may face downward pressure, as owners adjust prices to meet liquidity needs, while those between €300,000 and €400,000 see reduced demand due to fewer loans being disbursed. Newly constructed properties are an exception, with prices rising due to increased material and labor costs.

For properties exceeding €400,000, location often outweighs construction quality as a decisive factor. For instance, the southern suburbs of Athens continue to thrive, fueled by the mega-project in Elliniko, with prices showing steady upward trends. In less privileged areas, however, urgent sales may create opportunities for investors.

Commercial Properties Turned Residential

A noteworthy trend involves the conversion of low-value commercial spaces into residences. Old offices, unrented shops, and industrial spaces being transformed into homes are reviving interest, particularly under the Golden Visa program. This trend has created opportunities in Thessaloniki, especially with the completion of the metro system, which is upgrading the surrounding areas.

Old but Gold

Those who purchased 1970s apartments in Athens decades ago likely never imagined these properties would be at the forefront of buyer interest today. With the “My Home II” program, properties from this era are emerging as the most economical and attractive options in areas of Athens and Thessaloniki with high demand.

Analysis by the real estate platform Spitogatos shows differences in price trends depending on the region in Attica. Eligible properties in the southern suburbs, specifically Glyfada, were built around 1970, average 65 sq.m., and are priced at approximately €200,000.

In central Athens, areas like Pangrati feature properties from the same era, averaging 60 sq.m. and priced at €160,000. In Piraeus, eligible properties built in 1974 average 66 sq.m. and are priced at €185,000.