Greece Golden Visa: Property Market Value Increase in Piraeus (2019–2025) | Avla Real Estate

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Real Estate Investment in Piraeus, Greece, under the Golden Visa Program

The Piraeus housing market stands out for its extraordinary performance between 2019 and 2024. During this period, housing sales prices cumulatively increased by over 83.8% , recording the highest value increase in the Attica region. 1 In particular, a price jump of approximately 29% year-on-year was experienced during the 2023-2024 period. 1

This dramatic rise is the result of the simultaneous interaction of four fundamental structural dynamics:

1) Revitalized domestic demand and government incentives driven by the recovery of the Greek economy;

2) The high influx of foreign investors created by strategic adjustments in the Golden Visa program;

3) Comprehensive, modernization-focused urban renewal projects that transformed the face of Piraeus; and

4) Critical infrastructure investments that fully integrate the city into the Athenian metropolitan area, particularly the extension of Metro Line 3 .

Piraeus still offers investors significantly more affordable entry costs compared to the luxurious southern suburbs of Athens, while gross rental yields hovering around 5% make it an attractive location for those seeking both high capital gain potential and regular cash flow. 1 Although a normalization of the rate of price increase is expected in the future, the region's structurally strengthening position and continued international demand maintain its long-term appreciation potential.

PART I: PIRAEUS'S MACROECONOMIC AND FINANCIAL MARKET PERFORMANCE

1.1. Economic Recovery and a Boost in Local Demand

The rise in the Piraeus real estate market is driven by Greece's emergence from a long period of economic stagnation and the effects of macroeconomic recovery. 1 The gradual increase in household incomes has revived the appetite for home ownership among the local population. 1 This revival has been supported by favorable financing conditions; following the European Central Bank's interest rate cuts, new mortgage interest rates in Greece have fallen, averaging 3.63% as of April 2025. 1 This low-interest environment has made it easier for local buyers to return to mortgage-backed home purchases.

A critical factor accelerating this recovery process is the government's housing incentive programs. In particular, the “Spiti Mou” (My Home) program, launched in 2023, aimed to utilize the old and underutilized housing stock by offering low-interest loans to young people aged 25-39. 1 This program shows that approximately 10% of new mortgage purchases were made possible through direct government-backed loans. 1 This demonstrates that the Piraeus market is fueled not only by international capital but also by a strong domestic market dynamic supported by government incentives.

This local demand dynamic has led to the geographical segmentation of Piraeus. Drapetsona and Perama, working-class neighborhoods on Piraeus' west bank with a relatively affordable housing stock that met the program's requirements, have seen record price increases due to an influx of local buyers. 1

1.2. Analysis of Price Dynamics: The Hyper-Growth Period (2019-2024)

In Piraeus, housing prices, after a modest increase that began in 2018, gained momentum in 2019 and have since continued to rise at a rate far exceeding the national average. 1 Over the five-year period between 2019 and 2024, the cumulative increase in listed housing prices in Piraeus reached 83.8% , giving it the lead in the Attica region. 1 This rapid rise has made the region the best-performing area in the post-crisis period.

The rate of increase has peaked, particularly recently. As of the second quarter of 2024, Piraeus has become Greece's fastest-growing housing market, with an extraordinary year-on-year price increase of 28.9%. 1 This structural repricing process demonstrates that the value gap accumulated during the long economic recession in the region is being rapidly closed thanks to infrastructure and policy changes.

In terms of price levels, the average price per square meter of housing in Piraeus was approximately €1,350-1,400 in 2019, rising to €2,471/m² by mid-2025. 1 This value indicates that Piraeus is still positioned as a more affordable alternative compared to central Athens. This price difference creates a strategic opportunity for investors, as similar properties in the southern coastal suburbs of Athens (Athens Riviera) cost €4,000-5,000 per square meter. 1 Analyses show that the hyper-growth in Piraeus is driven by a convergence strategy , with investors expecting this price gap to close over time . In other words, the gap between current valuation and potential value is the main driving force behind investor activity.

Port of Piraeus: Aegean Sea Coastal Strip — Pire Limanı: Ege Denizi Sahil Şeridi

1.3. Regional Price Differentiation and Market Segmentation

Price increases in the Piraeus region show significant differences between neighborhoods, revealing a heterogeneous market structure. The rate of increase has varied depending on Piraeus' socio-economic structure and government incentives. 1

For example, thanks to local demand and the Spiti Mou program, the Drapetsona and Perama neighbourhoods on the west bank of Piraeus recorded price increases of 26.3% and 26.1% respectively in the third quarter of 2025 compared to the previous year. 1 These areas contain a more affordable stock of older housing and are therefore the first choice for local, incentive-backed buyers.

In contrast, affluent areas of Piraeus, such as Kastella and Pasalimani (around Marina Zea), which already have high property values, have seen more limited increases or stagnation recently .

This situation demonstrates that the Piraeus market serves two distinct buyer segments: on one hand, low-cost areas driven by local, incentive-supported buyers; and on the other, central and coastal areas revitalized by high-quality transformation projects targeted by Golden Visa investors. Investment analysts should differentiate return profiles based on these two different market dynamics.

Table 1: Key Performance Indicators for the Piraeus Housing Market (2019–2025)

Parameter	2019 Average (Approximate)	Mid-2025 Average	Cumulative Increase (2019-2024)	Annual Growth Rate for 2024	Positioning
Average Price (€/m²)	€1,350 - € 1,400	€2,471/ m²	83.8 %	28.9 %	Leader of the Attica Region
Drapetsona Annual Increase	N/A	N/A	N/A	26.3% (2025 Q3) 1	Growth Focused on Local Incentives

PART II: THE IMPACT OF FOREIGN INVESTMENT AND THE GOLDEN VISA ARBITRAGE IN GREECE

2.1. Regulatory Arbitrage: Piraeus' Strategic Location

One of the strongest catalysts behind the real estate boom in Piraeus is the regulatory changes in Greece's Golden Visa (GV) program. 1 In effect since 2013, the GV program has granted residency permits in exchange for a real estate investment of at least €250,000. 1 The program has attracted significant international capital, particularly from Chinese and Turkish investors. 1

Changes to the Golden Visa requirements in 2024 have strategically directed foreign investment towards Piraeus. While the minimum investment amount for Athens city center and luxury southern suburbs was gradually increased from €500,000 to €800,000, Piraeus was exempted from this increase, positioning itself as an alternative region where the old €250,000 threshold remains valid .

This arrangement has created a kind of regulatory arbitrage . International investors who lack the budget for central Athens or who want to maximize investment efficiency have had the opportunity to obtain the same EU residence permit privilege in Piraeus at a much lower cost compared to the high-cost areas of Athens. 1 This strategic decision has artificially created a guaranteed investor pool in the region by channeling the flow of investors to Piraeus.

Within the scope of the Greek Golden Visa program, a neoclassical building near the Piraeus Archaeological Museum will be 100% restored and converted into 4 apartments. — Yunanistan Golden Visa kapsamında, Pire Arkeoloji Müzesi çevresinde %100 restore edilerek 4 daireye dönüştürülecek neoklasik bina.

2.2. Commercial Transformations and Quality Upgrades

Another important dynamic brought about by the Golden Visa program is the trend of converting former commercial and industrial buildings into residential properties. According to the Greek government's regulation in the GV conditions, the minimum investment amount for converting buildings with industrial or commercial licences into residential properties remains at €250,000 , regardless of location . 1 This rule has provided developers with a strong incentive to convert derelict industrial stock into modern, serviced residential units demanded by the Golden Visa market. 1

One of the most striking examples of these transformation projects is the Etolikou 11 residence , a former factory building located near the port of Piraeus . 1 This structure has been completely renovated and transformed into a complex containing a total of 158 luxury serviced apartments. 1 Such projects offer modern amenities such as rooftop pools, gyms, and co-working spaces, adding quality and vibrancy to the urban fabric while also providing the high-standard stock required by foreign investors. 1

This transformation not only increases supply but also creates a multiplier effect by renewing the urban fabric, attracting new residents, cafes, and shops to the area . The conversion of commercial buildings into luxury residences has helped Piraeus shed its "old and dilapidated" image and evolve into a center offering modern and high-quality living spaces.

Table 2: Comparative Analysis of Golden Visa Minimum Investment Thresholds (Post-2024)

Area	Standard Housing Investment (Minimum)	Commercial Conversion/Historic Building (Minimum)	Strategic Importance
Athens City Center/Luxury Suburbs	€ 800,000	€ 250,000	Price Increases in High-Prestige Areas
Piraeus	€ 250,000	€ 250,000	Regulatory Arbitrage and Low Entry Threshold

The building in Piraeus, originally commercial, is being converted to residential use and will be fully restored soon after being purchased by the company we represent. — Pire’de ticariden konuta dönüştürülecek olan, temsil ettiğimiz firma tarafından satın alınarak yakın zamanda tamamen restore edilecek yapı.

CHAPTER IV: RETURN ON INVESTMENT (ROI) ANALYSIS AND FUTURE PERSPECTIVES

4.1. Cash Flow and Rental Yield Profile

Piraeus offers investors both capital gains and satisfactory rental yields thanks to its strong demand dynamics. The city is known for its proximity to educational institutions such as the University of Athens and the University of Piraeus, hosting tens of thousands of students every year. Its metro connection makes Piraeus a top choice for students and young professionals working in central Athens.

Despite the rapid increase in sales prices, demand in the rental housing market has remained strong, and rents have risen accordingly. By 2025, average rental income in Piraeus is projected to reach €10-11/m²/month. 1 This means that gross rental yields in Piraeus are still around 5% . 1 This rate is quite satisfactory in a low-interest environment (3.63% mortgage interest rate) and presents a positive profile compared to many large city markets in Western Europe. This situation transforms real estate in Piraeus from a purely speculative asset into a secure source of income providing a steady cash flow.

In the Mavi Port project, this is one of the modern apartments located in the restored building and spread across the entire floor. — Mavi Port projesinde, restorasyonu tamamlanmış binada yer alan ve tüm kata yayılan modern dairelerden biri.

4.2. Market Normalization Expectations for 2026 and Beyond

Following Piraeus's cumulative 83.8% increase, some normalization is expected in the market. Experts predict that after the price levels reached by 2025, the annual growth rate may normalize somewhat, and from 2026 onwards, it will decline from ultra-high levels to more sustainable rates .

One factor playing a role in this expectation of normalization is the possibility that tax incentives (such as VAT exemption for new construction) expected to expire at the end of 2025 will end. 1 The removal of these incentives could cause demand to cool down somewhat.

However, long-term expectations remain strong. Thanks to continued economic growth and sustained international demand stemming from the Golden Visa program, prices in Piraeus are expected to maintain their upward trend. For example, while nationwide housing prices are projected to increase by an average of 4.9% annually until 2027, locations benefiting from structural transformation, such as Piraeus, are considered to have the potential for returns exceeding this average. 1 This means that the focus in investment strategy should shift from high speculative capital gains to value preservation and secure income streams .

The fact that Piraeus is currently a lower-priced market compared to Athens' prestigious coastal suburbs indicates that its convergence potential has not been fully realized. It is thought that the potential for property appreciation in Piraeus will continue as ongoing urban regeneration projects are completed and the socio-economic profile of the area rises.

Syntagmatos Pezikou Street, where the Mavi Port project is located, directly connected to Piraeus Port, and where a historic building is planned to be transformed into a modern bus stop. — Mavi Port projesinin üzerinde konumlandığı, Pire Limanı’na doğrudan bağlanan ve modern bir Durağa dönüştürülmesi planlanan tarihi yapının yer aldığı Syntagmatos Pezikou Sokağı

Table 3: Total Return on Investment (ROI) Strategy for Pire Real Estate Investment

	Current Level	Trend Direction	Strategic Importance
Capital Gain	High (83.8% Cumulative) 1	Towards Normalization	Potential for convergence play (athenian average)
Rental Income	Sustainable (5% Gross) 1	Stable	Secure cash flow based on student and professional demand.
Golden Visa	€250,000 Threshold 1	High Strategic Value	Lowest cost access to EU residence permits.

In the Mavi Port project, the terrace of one of the three apartments located on the restored floor (sold out). — Mavi Port projesinde, restore edilmiş katta yer alan üç daireden birinin terası (satışı tamamlandı)

CONCLUSION AND STRATEGIC RECOMMENDATIONS: Greece | Golden Visa | Piraeus

In Greece, under the Golden Visa program, the Piraeus real estate market has become one of the most dynamic and attractive investment centers in the country, thanks to the extraordinary increase in value experienced in the last five years. This success is due to the local economic recovery, as well as the government's deliberate channeling of capital to this region through Golden Visa regulations and the simultaneous implementation of major urban transformation and infrastructure projects (Metro Line 3, Piraeus Tower renovation).

Piraeus offers investors both regular rental income (5% gross yield) and the potential for high capital gains in the medium to long term, stemming from convergence with the Athens average .

Strategic Recommendations:

Utilizing Golden Visa Arbitrage: International investors should focus on opportunities that avoid the high threshold in Athens while maintaining the €250,000 minimum investment amount set for the Golden Visa. 1 This strategy specifically requires a focus on projects like Etolikou 11, where older commercially licensed buildings are converted into residential properties. These conversion projects provide the newest housing stock with the highest rental demand, while securing a residence permit at the lowest cost. 1
Prioritizing Quality Stock and Location: A significant portion of the investment portfolio should be allocated to modern, serviced apartments catering to both students and white-collar professionals. Proximity to metro lines, universities, and urban renewal areas (e.g., around Piraeus Tower) will maximize high occupancy rates and rental premiums.
Timing and Preparation for Normalization: As the period of aggressive capital gains shows signs of slowing, investment decisions should be made before the potential expiration date of tax incentives (VAT exemption). The focus going forward should be on capital conservation and maintaining stable rental income, as Piraeus's structural appreciation potential is expected to continue in the long term.