In Greece, buyers are increasingly favoring smaller properties, primarily for investment purposes with the hope of future capital appreciation. Smaller properties are also popular due to their more affordable prices, lower maintenance costs, and potentially attractive rental returns.
According to national sales data from the Greek real estate transaction platform RE/MAX, 50% of buyers choose properties under 75 square meters, with 24.9% choosing properties between 51 and 75 square meters. Compared to last year, the proportion of buyers purchasing properties under 50 square meters and between 51 and 75 square meters has increased, while the proportion of buyers purchasing properties over 76 square meters has slightly decreased.
Athens and Thessaloniki Markets
In the Attica region, where Athens is located, 27.7% of buyers choose properties between 51 and 75 square meters, while 25% choose properties between 60 and 100 square meters. The situation is similar in Thessaloniki, where most buyers choose properties between 51 and 75 square meters, with properties between 76 and 100 square meters being more popular, accounting for 29%.
Other Regions
In other parts of Greece, properties under 50 square meters are the most popular, accounting for 29.8%; followed by 51 to 75 square meters at 21.8%; and 76 to 100 square meters at 20.9%.
These figures reflect the diverse needs and preferences of buyers in different regions of Greece. Overall, small properties are gaining increasing attention in the Greek real estate market due to their lower costs and higher returns.
Investing in These Types of Real Estate in Greece is Most Promising
The Bank of Greece recently released a list of several property types that can yield substantial returns in the coming years for real estate investment in Greece.
In its recent monetary policy report, the Bank of Greece emphasized the significant potential for future capital gains and development in logistics, commercial warehouses near Athens and Thessaloniki, and housing investments for specific groups (such as student dormitories and nursing homes).
Meanwhile, expectations remain optimistic for hotels and high-standard hospitality facilities, bioclimate offices, and data centers.
According to a commercial real estate market survey by the Bank of Greece, in the second half of 2023, the minimum yield for high-end office space in Athens' most commercially developed areas was between 5.5% and 6.7%, while the minimum yield for high-end retail space was between 5.2% and 6.1%. The corresponding yields in Thessaloniki were estimated at 6.5% to 7.4% for office space and 5.6% to 6.5% for retail space.
According to an index published by the Bank of Greece, in the second half of 2023, the price of high-end offices rose by 2.1% compared to six months prior, while the price of high-end retail space rose by 2.4%.
In Athens, office space and high-end retail space saw higher growth rates, at 2.9% and 3.4% respectively. Nationwide, rents for all types of office space and retail space also increased, by 1.5% and 1.1% respectively.
Meanwhile, according to a report by the Bank of Greece, commercial real estate construction activity recorded positive growth at the national level in 2023 and the first two months of 2024. Different real estate categories showed varying rates of growth. New office and retail space both saw year-on-year increases in January and February 2024, while hotels experienced a 13% decline.