Rental prices in Greece are increasing at explosive rates, with the housing crisis now evolving into a deep structural imbalance in the economy. According to a KEFIM study, Greece recorded the second-largest rent increase in the European Union in 2025 (+10.1%), behind only Croatia, during a period where housing costs are absorbing an increasingly larger share of disposable income.
According to the latest Eurostat data, in the fourth quarter of 2025, housing prices in the EU-27 increased by 5.5% and rents by 3.2% on an annual basis. However, the Greek case deviates significantly from the European average, confirming that the domestic real estate market is characterized by more intense fluctuations and structural weaknesses.
How rents have “moved” in the last 25 years in Greece
The trajectory of rents in Greece over the last 25 years is indicative of this instability. During the period 2000-2011, rents increased by 53%, reflecting economic prosperity and easy access to lending. The financial crisis, however, completely reversed the picture: from 2011 to 2018, rents recorded a 26% decline, as unemployment soared and incomes shrank. This was followed by a period of stagnation until 2021, before starting from 2022 a new, intensely upward phase, which led rents in 2025 above 2010 levels.
Similar, but even more intense, was the fluctuation in housing purchase prices. As evidenced by Bank of Greece data, the Greek market experienced an almost doubling of prices during 2000-2008, followed by a deep decline until 2017. Since then, the recovery has been rapid, as in Athens alone prices increased by 86% during 2017–2025, now exceeding pre-crisis levels.
At the European level, the general trend shows that purchase prices are rising faster than rents. From 2005 to 2025, housing prices almost doubled, while rents increased by approximately 43%. This development reflects the continuing imbalance between supply and demand, particularly in major urban centers, where demand for housing remains strong.
Nevertheless, the most concerning element for Greece is not only the price increase, but the burden on households. In Athens, the rent for a one-bedroom apartment corresponds to 70.2% of average monthly income, while for two bedrooms it reaches 93.6%. The corresponding percentages in the EU are significantly lower, between 31%-34% and 46%, which demonstrates the magnitude of housing pressure in the Greek capital.
The relationship between rents and inflation is also of particular importance. While during the crisis period rents were declining, from 2023 onwards they are increasing at rates reaching 10% annually, while inflation is moving at significantly lower levels. This divergence means that housing is becoming increasingly expensive in real terms, mainly burdening lower income groups.
The causes of the crisis are multiple and interconnected. The explosion of tourist demand and the expansion of short-term rentals have drastically reduced the available housing stock. At the same time, the decade-long crisis limited construction activity, leaving behind a significant supply gap. Added to this are foreign investments in the real estate market and the utilization of programs such as the “Golden Visa,” which strengthen demand.
The result is a market that is recovering dynamically, but without adequate balancing mechanisms. Greece is now in the “front line” of increases in Europe, with housing costs evolving into one of the main factors of social pressure.
In detail, the main conclusions of the study are as follows:
- In the EU-27 in 2025, housing prices increased by 5.5% and rents by 3.2%.
- Greece recorded the second-largest rent increase in the EU in 2025 (+10.1%), behind only Croatia (+17.6%). Hungary (+9.8%), Bulgaria (+9.6%) and Romania (+8.2%) follow. In contrast, the lowest increases were recorded in countries such as Italy, France and Finland.
- From 2000 to present, rents in Greece followed a particular trajectory: rapid rise 2000-2011 (+53%), sharp decline 2011-2018 (–26%), stagnation 2018-2021 and again intense upward trajectory from 2022, exceeding 2010 levels in 2025.
- Housing purchase prices in Greece followed an even more intense trajectory: almost doubling 2000-2008, deep decline 2008-2017 (-43% in Athens) and rapid recovery 2017-2025 (+86% in Athens), exceeding 2008 levels in 2025.
- The ratio of rent to monthly income in Athens amounts to 70.2% for a one-bedroom apartment and 93.6% for two bedrooms (2024), compared to 31-34% and 46% respectively for the EU average.
