The new year brings significant changes to the real estate market as the government has already initiated new policies and measures that affect both the domestic market and international investors. Below is an analysis of the developments, challenges, and opportunities expected to shape the real estate market in 2025.
Negative Developments: The Three Major Changes
- Residence Permit Regulations: New regulations for non-EU citizens may limit investment opportunities in real estate, negatively impacting the inflow of foreign capital.
- Short-Term Rental Measures: Changes in the regulations for short-term rentals may reduce the dynamics of the tourism-related real estate market, significantly affecting the sector.
- Building Code Modifications: New amendments increase bureaucracy and costs for investors and developers, discouraging activity in the market.
Positive Developments: Opportunities for Growth
Despite the challenges, there are three significant positive developments:
- Extension of VAT Suspension and Capital Gains Tax: This extension keeps demand high, supporting investments in newly built properties.
- "My Home 2" Program: The program offers opportunities for young people to acquire their first home, contributing to market stabilization.
- Focus on Infrastructure Completion: Completing the Land Registry and forest maps remains critical for transparency in property transfers.
Necessary Reforms
Simplifying transfer procedures, such as issuing building identity certificates and energy performance certificates, is essential to reduce costs and delays. Additionally, incentives for regional development, such as improving infrastructure and creating new industrial zones, could help mitigate urban overpopulation.
2025 Market Forecasts
Property prices are expected to continue their upward trend, with the following categories experiencing the highest demand:
- Older residences in Athens city center.
- Industrial spaces in the suburbs.
- Small homes on islands with international airports.
- Commercial buildings with energy certifications.
At the same time, rental prices will remain high in cities with increased demand, such as Athens, Thessaloniki, and Heraklion, as well as in areas with tourism growth or universities.
The Need for Strategic Planning
The government should implement measures such as:
- Controlling construction material prices and employer contributions.
- Expanding city planning areas.
- Boosting housing supply through tax incentives.
Access to affordable housing remains a significant challenge for many families, while new housing policy programs are crucial.
Conclusion
The Greek real estate market in 2025 is expected to feature significant changes, both positive and negative. Investors who adapt to the new conditions, identifying opportunities in the right property categories, will be able to benefit from the market's dynamics.
