Greece's housing market slows, new rules curb short‑term rentals

In the first quarter of 2026 the Greek residential property market continued its upward trend but with a noticeable slowdown. Apartment price growth fell to an annual 5.7% from 7.5% a year earlier, while new‑build prices rose slightly faster than older stock. Foreign investors remain active, especially in high‑spec office, tourism and logistics assets, but limited supply of modern, affordable housing pushes demand toward older units and peripheral urban areas. The Bank of Greece notes that rising construction costs, higher energy prices and the war in the Middle East add further uncertainty and keep overall price levels high for lower‑ and middle‑income households.

From July 2026 the government will introduce a series of regulatory changes aimed at boosting long‑term rental supply and limiting the expansion of short‑term rentals. New short‑term rental registrations will be prohibited in Thessaloniki’s central district, with fines of at least €20,000 and higher penalties for repeat offences. All rental payments must be made through the banking system from 1 October 2026, linking bank transfers to tax benefits for both tenants and landlords. The 24% VAT on new construction remains suspended until the end of 2026, while the objective property values, unchanged since 2021, are slated for revision in 2028. Property and electricity taxes will be replaced by a local development levy collected via electricity bills starting in 2027.