How the housing market will shape up in the first half of 2025

According to recent data from the Bank of Greece for the second quarter of 2025, the general apartment price index rose by 7.3% on an annual basis. Although this increase is lower than the 9.8% recorded in the corresponding quarter of 2024, it remains indicative of the momentum that the market continues to maintain. It is worth noting that the increase slightly exceeded the performance of the first quarter (7%), indicating steady resilience despite the adverse economic environment.

In terms of geographical distribution, Athens recorded a 5.9% increase in the second quarter, compared to 5.2% in the first, showing a slight acceleration. Thessaloniki performed better, with 8.8%, albeit with a slight slowdown from 10.1% in the first quarter. The other major cities recorded an increase of 8.5%, reflecting a clear strengthening of regional demand.

The difference between old and newly built homes is interesting. In newly built apartments, the increase was limited to 6.8%, while in older ones there was a more pronounced rise of 7.6%, which is attributed to the lower starting point of prices and greater availability.

According to data from RE/MAX Hellas, properties with a surface area of 76–100 square meters attracted the most interest from buyers in 2024, accounting for 26.2% of transactions, compared to 23.2% in 2023. These are homes that offer sufficient space for families without excessive purchase and maintenance costs.

In second place are apartments measuring 51–75 square meters, with a share of 23.4%, while demand for even smaller properties up to 50 square meters remains significant (22.6%). The latter category, although showing a slight decline compared to 2023 (24.7%), remains high in the choices mainly due to the investment interest it attracts – from short-term rentals to student housing.

On the contrary, larger properties seem to be losing ground. Homes between 101 and 150 square meters account for 18.3% of buyers, while very large homes over 151 square meters are limited to 9.5%. This reflects both economic hardship and a shift in priorities: the focus is no longer on luxury space, but on a balance between cost and functionality.

Current trends indicate that the housing market is entering a period of readjustment, with demand focusing on "realistic" properties that better meet the needs and financial capabilities of the average family. If prices continue to rise without a parallel improvement in incomes, this shift towards smaller and more affordable homes is expected to intensify.