Property price in different regions of Greece

Sofia Pesiou,  Saturday, 9 November 2013


This article is part of a series of 8 articles about buying property in Greece. The other articles in the series cover the following topics:

The price of the property depends on a number of factors like the area, the objective value, the square meters of area that a house covers, the age, the floor and other characteristics, such as orientation, the view or the construction materials. Most of all, however, the price always depends on supply and demand in this region and for this period.

Greece’s real estate market has been suffering great losses as the residential property prices have been falling since 2008 due to the economic crisis. According to recent results of a survey conducted by the Bank of Greece, house prices have fallen by:

0.77% in the year 2008
4.2% in the year 2009
5.8% in the year 2010
8% in the year 2011
13.1% in the year 2012.

The house prices, in the whole country, have been influenced largely by the financial crisis. Yet a new law allows foreigners who purchase property over €250.000 to apply for a 5 year visa residence and it is open to renewal. This has been done with the aim to revive Greece’s ailing economy. This residence measure is similar to ones adopted in Spain, Portugal, Cyprus and Hungary.

Regardless of the measures for the revival of the property market which are very scarce, the austerity package that has been imposed to Greece reduces the interest of buyers when it comes to purchasing a house.

Most popular destinations

In addition, as the recession is continuing in Greece, the property price in once expensive areas such as Exarhia, Kolonaki, Kerameikos, Ilisia, Acadimia Platonos, Lofos Skouze and other regions in the capital city of Athens has plunged by 12.6 in the first 3months of 2013. The results are similar for all cities of Greece and for other areas that are thought to be tourist attractions such as islands and coastal areas.

In Thessaloniki, the second largest city, property price decreased by 8.3% in the same period of 2013. Other major areas where the real estate market has been suffering, though in less intensity, are cities like Larissa, Patra, Volos, Komotini and Veria.

The islands on the Northern Aegean such as Lesbos, Limnos, Thasos and the Sporades too have been affected to some extent and the same applies for the islands in the Ionian such as Paxoi, Ithaca, Zakynthos. Specific areas in Crete and Evia, the two largest islands of the country have felt the impact of the six year recession but to a lesser extent.

Property demand remains depressed throughout the country however the least affected areas remain the most popular holiday destinations such as Halkidiki in Northern Greece and islands such as Corfu, Leukada, Kefalonia, Kythira in the Ionian, as well as Mykonos, Santorini, Andros, Milos, Chios in the Aegean and Rhodes, Kos in Dodecanese and of course certain coastal areas in Crete.

The situation is the same when it comes to winter destination such as the lodges on mount Parnasos, in Karpenisi, in certain villages in Mani and other areas of Peloponesse and of course in Zagoroxoria in Epirus and villages in Macedonia such as Pella, Seli, Vergina and larger towns like Litochoro, Kavala, Serres and Drama.

The prices on these popular islands range a lot; for villas prices start at €200.000 while less expensive apartments can start from €75.000 yet prices always depend largely on the location and type of construction.

Other destinations

Of course, there are much cheaper destinations as both Greeks and foreigners have changed their attitude when it comes to tourism. In the years following the economic crisis alternative forms of tourism have experienced a boom and especially ecotourism, agrotourism and religious or cultural tourism and theraupetic tourism too.

As far as it regards ecotourism, visits to traditional villages of Florina, Kastoria and Pella as well as outdoor activities in river of Evros in Alexandropouli and canoeing, kayaking, hiking and also extreme sports such as paragliding, skiing and base jumping in mountains, lakes and rivers in Northern Greece have given a boost to the economic life of regions such as Pieria, Pella, Imathia, Florina, Kastoria, Rodopi and Evros.

Agrotourism and religious tourism rises in areas of Thessalia and Epirus and in villages in mount Pelio, Meteora, and in picturesque villages in mountain range of Pindos. Certain towns of Sterea Ellada and Peloponese such as Galaxidi, Mesologgi, Naupaktos and Korinthos and Kalmata, Tripoli and Pyrgos are gradually increasing in popularity due to festivals that have started taking place there or the fact that they celebrate religious events in a still traditional way.

And of course, smaller islands and those which have remained unspoilt and perfect for combining holidays with exploration and adventure activities such as Amorgos, Folegandros and Koufonisia in Cyclades or Symi, Chalki, Karpathos in Dodecanese and Alonissos, Skopelos, Skiathos and Skyros in Sporades.

Property prices in those have been relatively low for many years and the tendency is irrespective to the current trend in other major destinations mainly on account of advertisement and increase of alternative tourism.