Greece’s Real Estate Market in the Mediterranean Context

The Mediterranean region has long been a desirable location for property buyers, offering beautiful landscapes, pleasant climates, and a rich cultural heritage. Among the many Mediterranean countries, Greece stands out as one of the top real estate markets for both domestic and international investors. However, how does Greece’s real estate market compare to other Mediterranean destinations like Spain, Italy, and Portugal?

In this article, we’ll examine the key differences and similarities between Greece’s real estate market and its Mediterranean counterparts, focusing on property prices, investment potential, legal requirements, and the overall buying experience for international investors in 2025.

1. Property Prices: Greece vs. Other Mediterranean Countries

One of the most important factors for investors is property pricing. The cost of buying property in Greece can vary widely depending on location, property type, and market conditions. Let’s see how Greece’s property prices compare to other Mediterranean destinations.

Greece

• General Price Trends: Greece’s real estate prices are considered relatively affordable compared to other Mediterranean countries, especially when looking outside major tourist hubs. However, prices have been rising steadily in popular areas, such as the Athens Riviera, the Aegean Islands, and Crete, due to increasing demand driven by both tourism and foreign investment.

• Average Property Price: In Athens, the average price per square meter in 2025 is approximately €1,500-€2,000. On popular islands like Mykonos and Santorini, prices can rise to €4,000-€6,000 per square meter, or even higher for luxury properties.

Spain

• General Price Trends: Spain’s real estate market is more diverse, with coastal properties in areas like the Costa Brava, Costa del Sol, and the Balearic Islands experiencing higher prices due to high demand from foreign buyers, especially Brits and Germans.

• Average Property Price: In cities like Madrid and Barcelona, prices average €3,000-€5,000 per square meter. Coastal areas in the Costa del Sol and Ibiza can reach similar or even higher prices than Greece’s most sought-after islands.

Italy

• General Price Trends: Italy’s real estate market, particularly in cities like Rome, Milan, and Florence, as well as in the Tuscan countryside, can be more expensive. However, rural areas and smaller towns in southern Italy and on islands like Sicily still offer relatively affordable options for buyers.

• Average Property Price: In Rome, Milan, and Florence, prices can range from €3,000 to €7,000 per square meter, while properties in smaller towns in regions like Puglia and Calabria are more affordable, often around €1,500-€2,500 per square meter.

Portugal

• General Price Trends: Portugal has become one of the most popular destinations for real estate investors due to its relatively low property prices, high rental yields, and attractive Golden Visa program. Coastal areas, particularly in Lisbon, Porto, and the Algarve, have seen significant price increases in recent years.

• Average Property Price: In Lisbon and Porto, the average price per square meter is approximately €2,500-€3,500. In Algarve, prices are somewhat lower, averaging around €1,500-€2,500 per square meter.

Comparison:

• Greece offers a relatively affordable entry point into Mediterranean real estate, especially when compared to high-demand areas in Spain, Italy, and Portugal.

• Property prices in Greece, while rising, are generally more affordable than in Italy and Spain’s major cities, but can be similar to coastal regions in Portugal.

2. Investment Potential: Where Does Greece Stand?

Greece

• Tourism: Greece is one of Europe’s top tourist destinations, which creates a robust short-term rental market, especially in islands like Mykonos, Santorini, and Crete. The demand for vacation properties remains high, offering strong rental yields, particularly for short-term lets during the tourist season.

• Golden Visa: Greece’s Golden Visa program, which grants residency permits to foreign buyers investing in real estate worth €250,000 or more, continues to attract international investors. This program provides an additional layer of investment potential, as it offers not just real estate returns but also residency benefits in the Schengen Area.

Spain

• Tourism: Spain’s real estate market is also heavily driven by tourism, particularly in coastal regions like Costa Brava and Costa del Sol, as well as the Balearic Islands. The strong tourist economy provides opportunities for short-term rentals and vacation homes.

• Golden Visa: Spain offers a similar Golden Visa program, requiring an investment of €500,000 in real estate. This higher threshold makes Spain less accessible to some international buyers compared to Greece.

Italy

• Tourism: Italy’s tourism industry is among the world’s largest, attracting millions of visitors annually. Coastal regions like Sardinia, Sicily, and the Amalfi Coast are popular for vacation rentals, though Italy’s market is generally more focused on long-term tenants.

• Investment Potential: Investment yields in Italy can vary significantly depending on location. Luxury properties in tourist-heavy regions can be lucrative, but rural areas or smaller cities might not offer the same returns as more developed areas.

Portugal

• Tourism: Portugal’s rental market is particularly strong in Lisbon, Porto, and the Algarve, which attracts both short-term tourists and long-term expats. Short-term rental yields are strong, and Portugal continues to benefit from an influx of foreign buyers, particularly from the U.K. and other European nations.

• Golden Visa: Portugal’s Golden Visa program, which requires a minimum investment of €500,000 in real estate, is one of the most popular in Europe. The program has boosted investment in the property market, especially in Lisbon and Porto.

Comparison:

• Greece, Spain, and Portugal all offer strong rental yields due to their tourism-driven economies. However, Greece’s relatively lower property prices and lower Golden Visa threshold make it a more accessible option for first-time investors.

• Spain and Portugal’s Golden Visa programs are more expensive than Greece’s, which may make Greece a more appealing option for those looking to secure residency with a lower investment.

3. Legal Requirements for Foreign Buyers: Greece vs. Mediterranean Neighbors

Greece

• Foreign buyers can purchase property in Greece, but they must meet specific legal requirements, such as obtaining a Greek tax number (AFM) and registering with the local land registry. Greece offers a Golden Visa for real estate investments above €250,000.

Spain

• Spain allows foreign buyers to purchase property without restriction, but they must apply for a tax identification number (NIE) and fulfill certain requirements, including not exceeding specific property limits near military zones.

Italy

• Foreigners can buy property in Italy without restrictions, though non-EU buyers need to check for reciprocal agreements between their home country and Italy. No special residency visa or Golden Visa is available for property buyers.

Portugal

• Portugal is very welcoming to foreign buyers, and non-EU nationals can purchase property through the Golden Visa program, with a minimum investment of €500,000. For regular purchases, foreigners must obtain a Portuguese tax number (NIF) and follow the same procedures as locals.

Comparison:

• Greece offers one of the most accessible Golden Visa programs, with a lower investment threshold compared to Spain and Portugal. Italy and Portugal also allow foreign buyers without too many restrictions, but Spain’s Golden Visa requires a higher investment threshold.

4. Lifestyle and Climate: Quality of Life in Greece vs. Other Mediterranean Countries

Greece’s Mediterranean climate, rich cultural heritage, and picturesque landscapes make it a great place to live and invest. Here’s how it compares to other Mediterranean countries in terms of lifestyle:

• Greece: Offers a diverse range of living environments, from bustling cities like Athens to peaceful island retreats like Corfu and Crete. The climate is typically Mediterranean, with hot, dry summers and mild winters.

• Spain: Spain’s southern coastal regions, including Costa Brava and Costa del Sol, have a similar Mediterranean climate. Spain also offers vibrant cities like Barcelona and Madrid, known for their cultural offerings and lifestyle.

• Italy: Italy offers a similar Mediterranean climate, with regions like Tuscany and the Amalfi Coast attracting tourists and second-home buyers. Italy is known for its high quality of life, especially in smaller towns and rural areas.

• Portugal: Portugal’s Algarve region is known for its sunny, temperate climate, making it a top destination for retirees and second-home buyers. Lisbon and Porto also offer an excellent quality of life, with a growing expat community.

Conclusion: Why Greece Stands Out in the Mediterranean Real Estate Market

While Greece’s real estate market shares many similarities with other Mediterranean countries, it offers some unique advantages, particularly in terms of affordability, investment potential, and access to residency through the Golden Visa program. Greece’s relatively lower property prices, strong rental yields, and accessible legal framework make it an attractive choice for both seasoned investors and first-time buyers looking to capitalize on the Mediterranean real estate market.

For more information and to start your investment journey in Greece, visit Chase Real Estate Corfu.