Greece is facing a deepening housing crisis, with conditions worsening rather than improving, despite a series of government interventions. Real estate experts, including the Association of Realtors of Athens-Attica, argue that the measures introduced so far have missed their mark largely because they were developed without meaningful dialogue with the property market. As a result, flagship initiatives such as the “My Home” program have backfired—fueling a fresh spike in home sale prices—while efforts to expand the supply of rental housing have faltered due to poor planning and implementation.
Rental prices across the country continue to climb sharply. Many landlords, driven by inflated expectations of high returns, are pushing prices upward—often ignoring the risk that these levels may not be sustainable over time. This speculative approach could backfire, leading to future financial losses through unpaid rents, legal disputes, or costly maintenance, ultimately outweighing any short-term gains.
Data from the listings site Xrysi Efkeria reveal a significant drop in housing supply across most parts of the Attica region in the first half of 2025. Even in cities where the number of available properties has grown, such as Thessaloniki and southern Athens, the increase has been too small to slow the pace of rent hikes. In Piraeus, listings for apartments up to 80 square meters rose nearly 19 percent, yet average rents increased by almost 12 percent, now reaching €11.65 per square meter. In the upscale suburb of Glyfada, rental prices for medium-sized apartments (81–120 sq.m.) have jumped 12 percent, averaging nearly €15 per square meter.
Thessaloniki has seen the steepest increases, especially in smaller units popular among students and young renters. Apartments up to 80 square meters now command €10.55 per square meter—a 17.6 percent rise in just a year—despite a 12.5 percent increase in the number of available listings. This surge suggests that new students arriving in the city will likely have to pay steep rents, with shared housing becoming increasingly necessary.
Meanwhile, central Athens appears to be losing rental stock. Listings for smaller apartments have fallen by over 13 percent, while the average asking rent has risen by nearly 12 percent to €11.65 per square meter. Medium-sized units are also in decline, with a 12.6 percent drop in availability and a near 9 percent increase in average rent. In neighborhoods like Elliniko, small apartments are now renting for €14.70 per square meter—up 15 percent from last year—while larger properties have hit €15.67 per square meter. In Vyronas, another Athenian suburb, large apartments are commanding rents 16.6 percent higher than last year.
Northern Athens is also under pressure. In Halandri, one of the city’s more desirable districts, small apartments are now renting for €13.50 per square meter, a nearly 15 percent year-over-year increase, even though the number of available listings has fallen by more than 22 percent.
This squeeze in the housing market is also reflected in a shifting demographic trend: fewer Greeks own their homes. According to Eurostat, renters now make up 30.3 percent of the population, up from 25 percent in 2015 during the peak of the financial crisis. The shift is driven by several factors, including rising foreclosures and the inability of younger households to access the housing market unless they inherit property. Many young couples are delaying independent living, with some continuing to reside separately in their parental homes in order to save money before renting or buying their own.
These challenges point to fundamental shortcomings in Greece’s housing policy. Despite government promises, the supply of homes has not increased—on the contrary, it has declined in many areas—and prices show no signs of stabilizing. A particularly telling failure is a tax incentive aimed at encouraging landlords to bring long-vacant apartments back into the market. The measure offered a three-year income tax exemption on rental income, but made eligibility dependent on the continuity of the tenant rather than the unit itself. This discouraged many landlords from participating, since any disruption—whether a tenant moves out early due to divorce, job relocation, or financial hardship—would cancel the benefit for the remaining years, even if the apartment is immediately rented again.
