The high number of unoccupied homes is closely tied to the ongoing struggle between supply and demand, influencing both rental and sale prices.
Experts in the real estate sector suggest that the current percentage of vacant properties may be even higher, given that many homes have been absorbed into the market without a corresponding increase in new construction.
The issue of vacant properties is not new in Greece; it has persisted for decades. However, the problem has worsened in recent years due to a collapse in construction activity, the expansion of short-term rental platforms like Airbnb, and increasing purchases by foreign investors, which have further reduced the availability of homes for local residents.
A study by the Institute for Research and Social Change (Eteron) highlights that Greece has one of the highest rates of vacant housing in Europe, particularly in major urban centers.
Data from the 2011 census showed that 31% of homes in the Municipality of Athens were vacant, with similar rates in Piraeus (28%) and Thessaloniki (28.2%). In Athens alone, the number of empty apartments was estimated at 132,000.
One of the main reasons many of these properties remain off the market is their deteriorating condition. Many owners either cannot afford or are unwilling to invest in renovations. A recent study by the National Bank of Greece estimated that around 250,000 homes across the country have fallen into disrepair over the past 15 years due to the prolonged financial crisis.
Over the same period, the Greek real estate sector missed out on an estimated €35 billion in investment that was needed for maintenance and modernization.
Despite this, Athens’ city center holds potential for redevelopment. Many old office buildings and commercial spaces could be converted into residential properties, a trend that is gaining momentum thanks to recent changes in Greece’s "Golden Visa" program.
Foreign investors can now obtain a residence permit with an investment of just €250,000 in properties that have been repurposed from commercial to residential use—significantly lower than the general €800,000 threshold for the rest of Attica.
However, a key condition is that these properties must be leased for long-term rentals, with short-term rental use explicitly prohibited.
Additionally, there have been proposals for a three-year tax exemption on rental income for properties that have been vacant for at least three years, provided they are rented out on a long-term basis. However, the measure faces challenges, as the tax exemption is tied to the tenant rather than the property.
If a tenant leaves before the three-year period ends, the landlord loses the tax benefit for the remaining time.
