Why Thessaloniki Is Attracting Foreign Real Estate Investors in 2025

Greece has long been a favourite for property buyers, but in 2025, it’s not just Athens or the islands drawing international interest. Thessaloniki—Greece’s second-largest city—has quietly become a top spot for foreign real estate investors. Offering affordability, rising demand, and infrastructure upgrades, this vibrant urban centre is catching global attention.

In this guide, we’ll explore why Thessaloniki is becoming one of Greece’s real estate hotspots, where to invest, what to expect, and how to get started.

What Makes Thessaloniki Appealing to Real Estate Investors?

Thessaloniki sits at the crossroads of the Balkans and the Mediterranean, combining rich history with a youthful, modern energy. Its location, lifestyle, and cost advantages make it especially appealing to buyers from Europe, the Middle East, and North America.

Key attractions include:

• Lower property prices than Athens and the islands
• Large student population and expat-friendly lifestyle
• Growing tourism sector and cruise port development
• Well-connected international airport
• Urban regeneration projects and EU funding support

Looking to start with a more traditional investment? Explore Corfu real estate opportunities.

Areas in Thessaloniki Worth Considering

• City Centre (Ladadika, Valaoritou): High demand for Airbnb and long-term rentals. Close to shops, cafes, and cultural hotspots.
• Ano Poli (Upper Town): Character homes with sea views and strong short-term rental appeal.
• Toumba and Kalamaria: Great for long-term rentals and family tenants. Good infrastructure and close to universities.
• Thessaloniki Port and Waterfront: Urban development projects are transforming this area, promising future value gains.

Pros of Investing in Thessaloniki Real Estate

• Strong rental demand: Students, tourists, and digital nomads keep occupancy high.
• Entry-level pricing: Apartments can start as low as €60,000, with solid returns.
• Value appreciation: Ongoing public works and metro expansion are boosting market value.
• Golden Visa access: Investment properties starting from €250,000 may qualify.

Cons to Keep in Mind

• Older building stock: Many apartments are in need of renovation.
• Seasonal tourism: While improving, Thessaloniki still sees fewer tourists than the islands.
• Rental saturation risk: Popular central areas are seeing more Airbnb listings, which could affect yields.

To learn more about legal and practical steps, visit our property buyer’s guide.

Infrastructure and Urban Regeneration Projects

Thessaloniki is undergoing large-scale infrastructure improvements:

• Metro Line 1 (under construction): Expected to drastically cut commute times by 2025-2026.
• Waterfront redevelopment: Turning the promenade into a world-class public space.
• Port expansion and cruise ship terminal: Increasing tourism and trade potential.

These projects are driving demand in neighbourhoods close to transit and tourist zones.

Real Estate Investment Strategies for Thessaloniki

• Buy-to-let: Apartments near universities or downtown are ideal for steady monthly income.
• Short-term rentals: Airbnb-style income in areas like Ladadika and Ano Poli.
• Fix and flip: Older homes in need of updates are widely available.
• Golden Visa strategy: Buy multiple smaller units to meet the threshold and maximise rental yield.

If you’re planning a diverse investment, consider pairing city property with a vacation rental in Corfu. See available listings.

Frequently Asked Questions

Can foreigners buy property in Thessaloniki? Yes. EU and non-EU citizens can buy. Some border zone restrictions apply elsewhere but not in Thessaloniki.

Are there new buildings available? Yes, but limited. Most stock is pre-2000, so be prepared to invest in renovations.

Is it better to buy for long-term or short-term rental? Both can work. Short-term has higher yield but more management. Long-term offers stable income and fewer legal hurdles.

Do I need a local bank account and tax ID? Yes. A Greek tax number (AFM) and local bank account are required for all buyers.

Are there English-speaking agents and lawyers? Yes. Get in touch with our team for reliable support in English.

Final Thoughts

Thessaloniki is fast becoming a top location for foreign real estate investors looking beyond the typical tourist destinations. With a combination of low entry costs, strong rental demand, and major infrastructure projects, the city offers both immediate returns and long-term potential.

It’s the right time to explore opportunities before prices catch up with other European hotspots. Need help navigating your next move? Contact our experts for tailored advice and listings.