Priciest Rental Neighborhoods in Greece and Rising Costs of rents

The relentless surge in rental prices across Greece shows no signs of abating in 2025, with Vouliagmeni retaining its status as the most expensive neighborhood for rentals in the Athens metropolitan area. A combination of short-term rental platforms like Airbnb, economic pressures, and urbanization is driving a nationwide housing shortage, making long-term leases increasingly scarce and costly.

Rising Rents and Short-Term Rental Boom

The proliferation of short-term rentals has significantly reduced the availability of properties for long-term tenants, pushing rental prices higher, even for older apartments. According to the Spitogatos Property Index (SPI), the first quarter of 2025 saw rental price increases in nearly every region of Greece. The Cyclades lead as the country’s priciest rental market, with an average asking price of €14.2 per square meter, followed by Athens’ southern and northern suburbs, the city center, and Piraeus. Halkidiki also ranks among the most expensive areas.

In Athens, Vouliagmeni stands out with an average rental price of €20.0 per square meter, cementing its position as the costliest neighborhood. More affordable options within Attica include Perama, Piraeus suburbs, and Acharnes, while the lowest rental prices nationwide are found in Kilkis, rural Thessaloniki, Pella, Kastoria, and Imathia.

Housing Affordability Crisis

Alpha Bank’s recent economic study highlights a growing affordability crisis, with property prices rising faster than household incomes. This disparity is eroding prospects for affordable homeownership, a long-standing priority for Greeks. Despite challenges, 74% of Greeks view property ownership as a sound investment, compared to just 25% who value renting for its flexibility.

The study reveals stark realities for renters: 52% spend over 30% of their income on rent, 68% consider rents unaffordable relative to wages, and 60% anticipate further increases in both rents and property prices over the next five years.

Factors Shaping the Market

Several factors will continue to influence Greece’s rental market, including government policies, interest rates, economic growth, urbanization, and global developments. The ongoing popularity of short-term rentals, coupled with limited housing supply, is expected to sustain upward pressure on prices, particularly in high-demand areas like Athens and the Cyclades.

As rental costs climb, Vouliagmeni’s premium pricing underscores the challenges facing renters in Greece’s capital. Demand for prime locations far outstrips supply, reshaping the housing landscape for residents and newcomers alike

Source: https://greekcitytimes.com/2025/04/29/vouliagmeni-remains-athens-priciest-rental-neighborhood-amid-rising-costs/