9/27/2025

The imbalance between demand and supply in the housing market has become one of the most pressing challenges for households across Greece. The issue is not confined to Athens and Thessaloniki; it is now hitting provincial cities with equal force.

While demand continues to rise, construction activity is collapsing. The limited number of new building permits being issued translates into very few new homes, leaving the housing stock unable to expand meaningfully. Combined with hundreds of thousands of properties that remain vacant or tied up in the portfolios of investment funds, this creates a vicious cycle of continuous price hikes. In several cities across Northern Greece, property values are now climbing at double-digit rates compared to last year.

According to the latest data from ELSTAT, construction activity in Northern Greece dropped by 34.8% in the January–May 2025 period compared to the same months of 2024. A total of 718 permits were issued, down from 1,102 last year.

Prices by City

Kavala leads the surge, with the average price per sq.m. soaring to €2,046 from €1,500 last year—a remarkable 36.4% increase, the steepest rise nationwide within a year.

Xanthi follows with an average of €1,161 per sq.m. (+11.2%), while in Rodopi the price stands at €1,116 (+11.6%). In Drama, prices rose by 11.4% year-on-year, now averaging €795 per sq.m.

Further increases were recorded in Evros (+9.9%, €1,608 per sq.m.), Halkidiki (+9.2%, €2,600), Pieria (+8.1%, €1,150), Serres (+5.1%, €888), Pella (+5.1%, €843), Grevena (+3.9%, €714) and Florina (+2.9%, €682).

By contrast, Kastoria saw the sharpest decline in Greece, with prices dropping 12.7%. The region now holds the lowest nationwide average, slipping below the symbolic €500 mark to just €494 per sq.m.

New Builds in Short Supply

ELSTAT’s most recent monthly data paints a bleak picture. In May alone, only 179 new building permits were issued across Northern Greece. Of these, 106 were in Central Macedonia (42 in Thessaloniki, 27 in Halkidiki, 12 in Pieria, 11 in Pella, 5 each in Serres and Imathia, and 4 in Kilkis). Eastern Macedonia and Thrace followed with 61 permits (10 each in Xanthi, Rodopi and Evros, 6 in Drama and 7 in Thassos). Western Macedonia trailed with just 12 permits (7 in Kozani, 3 in Florina, 2 in Grevena and none in Kastoria).

Looking at the broader January–May period of 2025, Northern Greece accounted for 718 building permits in total: 437 in Central Macedonia, 247 in Eastern Macedonia and Thrace, and just 34 in Western Macedonia.

A year earlier, during the same period, 1,102 permits had been issued: 729 in Central Macedonia (almost as many as all of Northern Greece combined this year), 334 in Eastern Macedonia and Thrace, and 39 in Western Macedonia.With construction activity at historic lows and prices continuing their relentless rise, Northern Greece faces a housing paradox: plenty of vacant homes, yet a shrinking pool of affordable options. Unless bold measures are taken to boost supply and ease market pressures, the gap between demand and reality may only widen further—leaving homeownership increasingly out of reach for many families.

Source: https://www.voria.gr/article/b-ellada-rali-stis-times-ton-akiniton-ptosi-stin-oikodomi-oi-times-ana-poli?fbclid=IwdGRleAM7119leHRuA2FlbQIxMQABHvk2D5AJUMVpMWJ9wCopzHlCGs67KgKbTLZr9QCcNCNPq8XX1QH_dVVsBoQU_aem_frt4AVmq5Xz7PQnevXeXsg