Greece’s real estate market reflects economic resilience and investor realignment, with new capital sources reshaping transactions while hospitality and data centers lead investment momentum amid structural sector shifts. Greece’s economic activity continues to
expand at a strong pace, with GDP growth reaching 2.1% in 2025 and projected at 2.2% for 2026—both above the current EU average. Inflation is expected to ease gradually to 2.4% by 2027, while unemployment is declining to levels not seen for more than a decade. Greece’s fiscal outlook remains favorable for 2025–2027, with broadly stable primary surpluses despite tax reductions and new social support measures. In 2025, a shift in the investor landscape became evident.
Traditional investors — such as Greek REICs and large private equity funds—have largely stepped back, acting more as sellers than buyers. In contrast, new entrants including Family Offices, UNWHI, and certain banking institutions have been investing heavily, particularly in income producing assets. These newcomers are now engaging in portfolio and single asset transactions at investment levels previously unseen. Notable examples include PRODEA REIC’s sale of two major portfolios valued at €745 million and €510 million to a private investor and a bank respectively, as well as the €700 million acquisition of ASTIR PALACE by a Greek family office.
Hospitality retained the largest share of the market—approximately 50% of total 2025 investment volume—attracting foreign institutional investors and major hotel operators. Significant commitments from HIP (Blackstone’s hospitality arm), Brookfield, Azora, and others are already underway. Greek hoteliers, family offices, and private equity funds are also active, purchasing both city and resort hotels and investing in capex to upgrade their offerings.
Athens, now a popular city break destination beyond the summer period, has benefited from rising visitor numbers, occupancy levels, and ADR. Data centers have emerged as another key
sector drawing foreign investor interest. Groups such as PIMCO, DAMAC, Digital Realty, DATA4, and Microsoft have secured or are close to securing major projects, particularly in the Greater Athens area.
However, challenges related to water and energy availability—combined with rising energy costs—may significantly affect the operational viability of such developments. In the broader logistics market, investor appetite remains strong, but the scarcity of suitable stock and the high proportion of owner occupied assets continue to limit transaction volumes. The office sector—traditionally the main investment target—accounted for 25% of the 2025 investment volume. Domestic investors focused on modern office buildings with long-term, sustainable tenants in prime locations. Although rental growth in recent years has supported demand, conditions in core European office markets—characterized by higher-quality stock and rising yields—have limited the participation of foreign investors in Greek office acquisitions.
Article published on ered.gr – Greek Real Estate & Development Magazine, author Yannis Paraskevopoulos, General Manager of Danos, an alliance member of BNP PARIBAS Real Estate
