Athens

Athens faces a severe housing crisis, marked by soaring property and rental prices that have outpaced incomes, particularly since 2017. Residential property prices in the city increased by roughly 90% from their post-crisis low, while disposable household income in Greece fell by nearly 24% between 2009 and mid-2024. The supply of homes available for sale and rent has dropped, with only 7% of property owners in Attica willing to sell as of late 2024, down from earlier years.

The crisis is magnified by very strong demand: prospective buyers outnumber sellers at least two to one. The share of households renting rather than owning has risen sharply, climbing from about 23% in 2010 to over 30% in 2024. Long-term rental inflation is pronounced, with rents rising over 10% year-on-year in central Athens, driven by limited supply and the conversion of homes into short-term rentals catering to tourists.

The hardest hit are low- and middle-income residents, young people, and families seeking affordable housing, as well as long-term city inhabitants pushed out by rising costs. With international investors—accounting for nearly 40% of property transactions—fueling further price growth, the affordability gap is widening, leaving many Athenians struggling to secure stable housing in a competitive, supply-constrained market.

The housing market in Athens is experiencing steady growth, with property prices averaging €2,480 to €2,944 per square meter for residential properties as of Q1 2025. Rental yields vary significantly by location, with an average gross rental yield of around 5%. Recent figures indicate a decline in home ownership, with more people opting for rentals.

The percentage of people renting versus owning homes in Athens is not explicitly documented, but the trend suggests an increase in renters. The median rental price per square meter is not provided, but the average asking rent exceeds €10 per square meter in central areas.

Publicly owned housing plays a limited role in Athens compared to other European cities. There is no specific data on the share of public housing in the market. In Greece, public housing typically refers to government-owned units, whereas social housing is a broader concept involving long-term public investment to keep prices affordable. Social housing is not a prominent feature in Athens, unlike in some other European cities.

Rental prices are driven by demand and limited supply, especially in central areas, which are in high demand due to tourism and urban regeneration projects.

Athens' city administration, together with the Greek national government, is taking new steps to address affordable and sustainable housing as part of broader national strategies. The latest targets focus on significantly increasing housing supply: the primary national goal is the delivery of 350,000 new homes by 2030, responding to the acute supply-demand imbalance and affordability crisis.

Key programs include a major public-private partnership (PPP) drive to build new affordable homes on underused public land, especially for people under 39 and vulnerable groups. Developers who build on state land can retain partial ownership, while the state receives at least 30% of new units for affordable housing, which are then offered at regulated rents or through rent-to-own schemes.

A separate “social exchange” program, under public consultation in mid-2025, aims to provide 25,000 new homes (60% in Athens and Thessaloniki), using public real estate for affordable and social rental units. Beneficiaries are selected by strict social criteria, and rent-to-own is available after ten years.

To curb rental inflation and regain supply, authorities have imposed a temporary ban on new short-term rental registrations in key Athens neighborhoods from January 2025 and introduced incentives for landlords to convert short-term rentals to long-term leases, including multi-year tax breaks.

All strategies emphasize combining public land reuse, private sector leverage, transparency, and stricter regulation of short-term rentals to boost affordable housing and protect residents.