Four Current Trends in the Greek Real Estate Market Every Investor Should Know

The Greek real estate market, particularly in popular islands like Crete, has undergone significant changes in recent years. For Israeli investors seeking opportunities in Europe, understanding current trends is critical for successful investment.

Here are four key trends reshaping the market in 2025 and offering unique opportunities.

1. New Government Programs to Encourage Zoning Changes and Renovation of Historic Public Properties

The Greek government has significantly expanded its incentive framework for renovating public buildings. As part of an initiative to preserve cultural heritage while encouraging foreign investment, the "Greek Renaissance" program was recently launched, offering:

• Grants of €10,000-20,000 for apartment renovations in historic buildings

• Significant tax benefits for foreign investors renovating properties over 50 years old

• Accelerated licensing procedures for projects preserving original architectural elements

• Support for converting old public buildings into residential apartments and/or accommodation units

In Greece generally and Crete specifically, many buildings that were previously in public use (such as old police stations, fire stations, and government buildings) are being converted to residential and tourism use, while receiving generous government support.

2. Rapid Adoption of New Technologies in Rental Properties

Greece's short-term rental market is undergoing a technological revolution, emphasizing "smart home" solutions and energy efficiency. Properties offering advanced technological experiences receive higher ratings and occupancy on platforms like Airbnb.

Leading trends include:

• Keyless entry systems enabling 24/7 self-check-in

• Smart home systems for controlling lighting, air conditioning, and shutters

• Ultra-fast internet and smart screens in every room

• Energy and water saving systems

• Remote management technologies allowing investors to manage properties from Israel

These technological updates not only create an enhanced hospitality experience but also enable significant savings in ongoing operational expenses.

3. Investors Seeking Stability Amid Global Economic Fluctuations

During times of economic uncertainty and high inflation, many investors seek tangible assets that provide protection against volatility. The Greek real estate market has proven particularly stable over the past two years, with consistent price increases and growing demand.

Reasons for the unique stability of Crete's real estate market:

• Stable and solid tourism unaffected by passing trends

• Still affordable prices compared to other Western European markets

• Supportive and stable government policy toward foreign investors

• Consistent upward trend in property values over the past decade

Compared to other European markets, Greece continues to offer significantly higher returns - averaging 5-7% for long-term rentals and up to 10-12% for short-term rentals in strategic locations.

4. Shift to Medium-Sized Cities and Less Touristy Areas

While Athens, Thessaloniki, and the most famous islands attracted most investor attention in the past, there's now significant movement of investments to medium-sized cities and less touristy destinations offering higher growth potential.

Agios Nikolaos in Crete is an excellent example: a medium-sized town offering all the advantages of a popular tourist destination, but with significantly more growth potential than saturated destinations like Chania or Heraklion.

This trend is driven by:

• Search for authenticity by tourists

• More affordable purchase prices

• Government support for developing less touristy areas

• Improved transportation infrastructure connecting different regions

Data from the past year shows that cities like Agios Nikolaos, Rethymno, and Sitia in Crete experienced approximately 15% increases in real estate prices, compared to 8-10% in the island's larger cities.

How to Best Leverage These Trends?

For Israeli investors, opportunities in the Greek real estate market have never been better. However, to successfully leverage these trends, it's important to work with experienced local partners who understand the market's nuances.

SASPORTAS company specializes in managing real estate investments in Crete, positioned exactly at the intersection of all these trends. Specializing in purchasing and renovating historic buildings and converting them into boutique apartments, we offer investors:

• Identifying opportunities according to the latest trends

• Maximum utilization of government incentive programs

• High-level renovation incorporating innovative technologies

• Professional management ensuring optimal returns

In Summary: A Window of Opportunity Worth Seizing Now

The Greek real estate market is at a unique point in time combining positive trends with unprecedented government support. For Israeli investors, this is an opportunity to enter the market at still attractive prices, before the current wave of demand pushes prices even higher.

It's important to remember that timing is a critical component in real estate investments, and by all signs, 2025 is an excellent year for investment in Greece generally and Crete specifically.

Contact us to hear more about the latest opportunities and understand how you too can leverage the positive trends in the Greek real estate market.