International Real Estate News 10.12.2025

To all those active in the Greek real estate sector—whether as developers, residential property
owners, or decision-makers. Important and verified information.
From the Desk of Cobi Bitton, CEO of the Chamber:
The Greek government intends to continue legislative actions and regulatory changes aimed at
curbing the rise in real estate prices, encouraging the renovation of apartments for long-term rental,
releasing apartments currently used as Airbnb units back into the free market for long-term rental, and
encouraging developers in the residential sector, including the student housing segment, i.e., student
dormitories.
International Real Estate News – 10.12.2025
Greece
Apartment Prices Continue to Rise
In Greece, the sharp upward trend in the housing market continues despite a general decline in
inflation. According to the latest data from the Bank of Greece, apartment prices in the third quarter of
2025 were on average approximately 7.7% higher than in the same period last year. Price increases
were recorded across the country: about 6.6% in Athens, 9.6% in Thessaloniki, 8.9% in other major
cities, and approximately 8.5% in the rest of the regions.
This marks the fifth consecutive year of sharp increases in apartment prices, some of them in double
digits, while overall inflation has already returned to levels of only about 2%–3%. The implication is
that housing costs are increasingly diverging from household incomes, deepening Greece’s housing
crisis.
To provide immediate relief to tenants, the government launched the “Rent Refund” program (Epistrofi
Enoikiou) for the first time in November. More than one million tenants received a refund directly into
their bank accounts at the end of November, without the need to submit an application. The refund is
based on 1/12 of the annual rent reported in the 2024 tax returns, for the primary residence and
student housing. The annual refund is capped at €800 for a primary residence, with an additional €50
per child, and up to an additional €800 for student housing, subject to income, asset, and
payment-method criteria (with preference given to electronic payments).
Alongside direct support for tenants, the government is also attempting to address the supply side:
● The “Renovate–Rent” program subsidizes the renovation of vacant apartments of up to 100
square meters, on the condition that they are made available for long-term rental.

● Activation of state-owned properties and “social regeneration” mechanisms is being promoted
to create a stock of affordable housing.
● Eligibility criteria are being expanded under the “My Home II” program, which provides
subsidized mortgages to young couples.
Economists and the Bank of Greece warn that any increase in demand—whether through subsidized
mortgages or rent subsidies—may fuel further price increases as long as new supply remains limited,
particularly in older apartments located in high-demand areas and city centers.
From the Desk of the Author, Attorney Ilan Leibovitz:
For Israeli investors who own property in Greece or are considering entering the market, it is
important to understand the following:
● The price environment continues to rise, but rental regulation is also becoming more
stringent.
● Programs such as the “Rent Refund” encourage transparent reporting and closer monitoring
of the rental market by authorities.
● Any investment decision should take into account not only gross yield, but also rental
taxation, eligibility conditions for subsidy programs, and “bubble” risks in certain areas.
Greece: Sharp Increase in Real Income
According to Eurostat data published this week, Greece recorded a 22.3% increase in real income per
capita between 2017 and 2023—one of the most significant increases in the European Union during
this period. This figure is particularly notable against the backdrop of years of moderate growth and
economic recovery following the debt crisis.
This improvement is based on two main factors:
● An increase in household income due to labor market recovery and wage growth.
● A sharp decline in inflation compared to last year, which has restored purchasing power to
one million Greek households.
According to the report, Greece shows an increase almost three times higher than the European
average, while many Western European countries have even experienced a decline in real income in
recent years. This data reflects an important shift in trend: Greek households today enjoy greater
purchasing power, with private consumption strengthening accordingly.

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All of the above does not constitute legal advice or a substitute for legal advice, and all information
provided is for general informational purposes only. Nothing stated herein is intended to replace
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