Tourism’s Influence on Greece’s Real Estate Market

In 2025, Greece’s real estate market is experiencing significant shifts, largely driven by a surge in tourism. The influx of international visitors is reshaping property demand, investment trends, and local communities across the country. This article delves into how the growing number of tourists is impacting Greece’s real estate sector, highlighting both opportunities and challenges for potential buyers and investors.

1. Rising Property Prices in Tourist Hotspots

Popular destinations like Athens, Mykonos, Santorini, and Crete are witnessing a steady increase in property prices. The demand for short-term rental properties, driven by tourists seeking accommodations through platforms like Airbnb, has contributed to this upward trend. In 2024, Santorini and Mykonos recorded rental yields exceeding 10%, among the highest in Europe .theluxuryplaybook.com

Key Insights:

• High Demand Areas: Properties near major tourist attractions and coastal regions are in high demand, leading to increased property values.

• Investment Potential: Short-term rental properties in these areas offer lucrative returns, attracting both domestic and international investors.

2. Surge in Foreign Investment

Foreign direct investment (FDI) in Greece’s real estate sector has seen a significant rise. In 2023, net FDI for real estate purchases increased by 8% year-over-year to €2.13 billion, following annual increases of 68% in 2022 and 34.4% in 2021 . This influx is primarily from countries like the U.S., U.K., and China, attracted by Greece’s Golden Visa program and the potential for high returns on investment.mykonosuniquevillas.grglobalpropertyguide.com

Implications:

• Market Dynamics: Increased foreign investment is driving up property prices, particularly in sought-after locations.

• Regulatory Considerations: Potential buyers should be aware of local regulations and taxes applicable to foreign investors.

3. Overtourism and Its Local Impact

While tourism boosts the economy, it also presents challenges. Overtourism in areas like Santorini has led to overcrowding, environmental degradation, and rising living costs for locals. In response, the Greek government is implementing measures such as cruise taxes and restrictions on short-term rentals to mitigate these effects .apnews.com

Considerations for Buyers:

• Community Impact: Prospective buyers should consider the social and environmental implications of investing in heavily touristed areas.

• Sustainable Practices: Investing in properties that promote sustainable tourism can align with both ethical considerations and long-term profitability.

4. Emerging Investment Opportunities

While traditional tourist destinations remain attractive, emerging areas are gaining attention. Regions such as the Peloponnese, Epirus, and parts of the Athens Riviera are experiencing growth due to improved infrastructure and increased accessibility .estiacapital.com

Strategic Investment Tips:

• Diversification: Exploring properties in less saturated areas can offer competitive pricing and growth potential.

• Infrastructure Developments: Investing in regions with planned infrastructure projects can lead to significant appreciation in property values.

5. Regulatory Landscape and Future Outlook

The Greek government is actively addressing the challenges posed by increased tourism. Proposed legislation includes measures to regulate short-term rentals and promote sustainable tourism practices . These initiatives aim to balance economic growth with the preservation of local communities and environments.practiceguides.chambers.com+5apnews.com+5theguardian.com+5

Looking Ahead:

• Policy Developments: Potential buyers should stay informed about regulatory changes that may affect property ownership and rental operations.

• Market Trends: The real estate market is expected to continue evolving, with a focus on sustainability and responsible investment.thetimes.co.uk

Conclusion

Greece’s growing tourism sector presents both opportunities and challenges in the real estate market. While property values in popular destinations rise, investors must consider the implications of overtourism and stay informed about regulatory changes. By approaching investments with a strategic and informed perspective, buyers can navigate the evolving landscape of Greece’s real estate market in 2025.