The real estate market is changing, not only due to new technologies or price fluctuations, but fundamentally and in depth, as new forces are transforming its core: the climate crisis, social inequalities, artificial intelligence, political uncertainty, and even the concept of housing as a social good. Increasingly, real estate is ceasing to be a traditional sector and becoming a dynamic field where environment, technology, economics and society converge.
The forces shaping the global real estate market today
This conclusion emerged at the 31st Annual Conference of the European Real Estate Society (ERES), organized by the Department of Accounting and Finance of the Athens University of Economics and Business. This is one of the most important academic events in Europe in the field of real estate research and one of the largest globally, attracting over 250 academics, researchers and professionals from around the world.
From the conference’s thematic sessions emerged the trends shaping the real estate market at international and European level – and consequently in our country. The landscape is more multidimensional than ever, as the market now intersects with issues of technology, environment, social cohesion, political instability and monetary policy.
Climate risk and new investment rules
One of the most characteristic patterns of the conference was the increasing impact of climate change on property value and functionality. Floods, rising temperatures and natural disasters have begun to translate into measurable losses, as well as new valuation and lending rules. Studies from countries like the Netherlands and Australia demonstrate the importance of green finance tools, mandatory flood risk disclosures and “green” portfolios.
Artificial Intelligence and digitization: The new real estate map
Technology is now a catalyst for market transformation. From AI in property valuation, to digital portfolio management tools and PropTech startups, the changes are sweeping. Analysts use machine learning for trend prediction, while buyers and investors have access to platforms that reduce the importance of intermediaries and enhance transparency.
The global affordable housing crisis
The lack of affordable housing, delays in new construction and the widespread difficulty of accessing decent shelter compose a global challenge. Research data highlight the need for new housing policies, inclusive social housing models and reconsideration of subsidies. “Vulnerable ownership” forms were also under scrutiny, especially in cases of migrants and single-parent families.
Uncertainty, interest rates and geopolitical instability
Political and monetary factors deeply affect the market. From interest rate increases to capital market volatility and the effects of the war in Ukraine, the framework remains volatile and requires constant reassessment of strategies by investors and institutional players.
Sustainability: From certifications to social value
Green transition is now a basic development strategy. WELL and ESG certifications, energy efficiency and circular economy indicators, carbon footprint and socially beneficial interventions (such as public parks or renovation of historic buildings) are now integrated into valuation parameters.
The role of education and skills
21st century real estate requires a new type of professional: economists with environmental awareness, engineers with knowledge of legal regulations, and educational institutions that incorporate technological tools and interdisciplinary thinking. Education is not just background – it’s a critical factor in market resilience.
The Greek example: International forces, local dynamics
In this global transformation framework, where technology, sustainability and social pressures determine the role of real estate in Greece as well. The dynamic trajectory of prices and geographical differentiations recorded in the 2nd quarter of 2025 reflect how international trends, as well as local policies, shape an increasingly complex and multi-level domestic real estate market.
According to the SPI price index of Spitogatos, which records the evolution of average asking prices (AAP) for sales and rentals, the 2nd quarter of 2025 showed increases of 9.7% in sales prices and 7.2% in rental prices compared to the corresponding period of 2024. Compared to the previous quarter, the increase was 2.8% in sales and 4.2% in rentals. The Southern Suburbs and the Cyclades maintain their leadership as the most expensive areas in the country. Specifically, Vouliagmeni and Voula remain the top areas in Attica for buying and renting housing, with the Cyclades recording an average asking rent of 15.3 euros/sq.m. At the opposite end, Kastoria, Kilkis, Florina and Pella are among the most affordable areas, with sales prices below 1,000 euros/sq.m. and rentals below 5 euros/sq.m.
Meanwhile, dynamic price increases are also recorded in areas of central Athens, in the Western Suburbs, as well as in sections of the Piraeus Suburbs. Programs such as “My Home 2”, tourist traffic and social interventions in favor of tenants affected demand, while waiting for university entrance bases provided temporary mobility in student areas.
The property market in Greece, as internationally, can no longer be interpreted exclusively from the relationship between supply and demand. Price is not determined only by square meters or location, but by new data that include technology, sustainability, resilience and transparency.
Source: ANA-MPA
