Investment trends and growing foreign interest in the southern suburbs
The impressive development of The Ellinikon and the large investments in Faliron Bay, with the soaring value of real estate, further enhance the appeal of these areas, making them the new benchmark for luxury living and excellent investments.
- 22/07/2025, 13:43
The smart and sustainable new city of The Ellinikon, LAMDA Development’s vision for the regeneration of the former international airport, is emerging as a growth driver for the Greek real estate market, attracting major investments on the coastal front, with the area capturing the interest of foreign institutional investors and individuals for the purchase of luxury real estate.
Attractive returns, exceeding 6-7% in prime areas – up from 5% on average in the country – and competitive market prices compared to other Mediterranean destinations offer a strong investment incentive.
More specifically, Greece has the cheapest average cost for purchasing property in the Eurozone, including the United Kingdom, at 2,317 euros/sq.m. The most expensive area is the southern suburbs of Attica, with an average price of 4,000 euros per sq. m. At the same time, the annual rental yield from the development of real estate in our country stands at 4.99%, ranking Greece in the top ten countries with the highest returns, according to an analysis by Alpha Bank that covered 22 markets. According to data from the Bank of Greece, the minimum yields of high-end offices in the capital’s Central Business District (CBD) ranged between 5.6% and 6.7% last year, while those of high-end stores in the locations with the greatest commercial activity in the center of Athens ranged between 5.2% and 6.0%.
In addition to the above, the steady rise in prices, with an average increase of 4.3% last year (8.7% in apartments in 2024, compared to 13.9% in 2023 and 11.9% in 2022) creates prospects for significant profit from the sale of property in the future, while purchases and sales also bring tax revenue. Last year, based on the contracts in the Real Estate Transfer Value Register of the Hellenic Public Property Authority, 42,745 properties changed hands with a total value of 4.07 billion euros, while taxes of 656.5 million euros were collected from purchases and sales, an increase of 26.2% compared to the previous year.
5 billion euros from foreign investors and the accelerators
The housing market is significantly boosted by the investment interest of foreigners, which remains strong, as confirmed by the data of the Golden Visa program, as well as the net inflows for the purchase of real estate from abroad, which have a strong share in the total investment in the country. In 2024, they amounted to 2.75 billion euros compared to 2.133 billion euros in 2023. That is, in two years they reached 5 billion euros, with interest remaining undiminished despite the continuous increase in prices, which also highlights other challenges, such as the limited availability of real estate for purchase or rental at affordable prices by households, students and young couples. These challenges are being addressed by the government with measures such as the “My Home” program, tax exemptions for owners for long-term leases, investments in abandoned properties, subsidies, etc.
It is worth noting that a number of factors, such as stability in the country, the promotion of reforms such as the land registry, the digitalization of the state, the New Building Regulation (NBR), but also the recovery of investment grade with the positive assessments of the economy by international rating organizations, are boosting demand from potential investors who until recently did not have Greece at the center of their attention. As a result, there is growing interest in investments in a wide range of real estate – from residences, offices and hotels to property portfolios, logistics, data centers, shopping malls and sports facilities.
For experienced investors and High Net Worth Individuals (HNWI) buyers, real estate is a strategic choice for wealth creation, especially in times of uncertainty. In today’s changing international environment, the real estate market continues to be considered one of the most reliable investment options, especially when combined with attractive destinations and luxury elements. Indicative examples are the Athenian Riviera and the new developments of LAMDA Development in The Ellinikon, with the Riviera Tower under construction, the first green skyscraper in Greece and one of the tallest in the Mediterranean.
Lamda Development’s investments are a catalyst
By the end of 2025, the company will have invested almost 1.1 billion euros out of the total 2.3 billion euros that the first phase of the project is expected to absorb. For 2024, revenue from residential property sales is expected to reach 550 million euros. Despite challenges, such as the lack of specialized human resources, the cost of construction materials and labor, the update of the NBR, but also the adjustments to regulations concerning the water and electricity networks, the project is progressing. Especially on the coastal front, works will be completed by the end of 2026, while the sports facilities will be delivered by the end of 2025. The construction of The Εllinikon Mall is also expected to begin within the year, subject to the finalization of financing. Its completion is expected around the end of 2028, a period during which the educational infrastructure is also expected to be put into operation, within the framework of the agreements with Costeas-Geitonas Schools (CGS) and the University of Nicosia (CVC). As stated by the CEO of LAMDA Development, Odisseas Athanasiou, during a conference call in March on the occasion of the 2024 financial results, 14 different developments are underway in The Ellinikon, in collaboration with 12 developers, while all the residential developments that have been put up for sale are in progress.
It should be noted that demand for housing remains strong, with total cash inflows from property sales from the start of the project until 28.2.2025 exceeding 1.1 billion euros. For 2024 alone, inflows amounted to 589 million euros, of which approximately 312 million euros relate to residential developments. A typical example is the Little Athens complex, where commercial success is reflected in the sale of 81% of the residences by the end of February 2025, at prices from 7,200 euros to 11,000 euros per sq. m. for Park Rise properties, which was designed by Bjarke Ingels.
The real estate market in the southern suburbs is attracting strong interest
All of the above is complemented by The Ellinikon Park, with 2 million sq. m. of greenery, which upgrades the Athens waterfront and the quality of life of citizens. It is one of the largest coastal parks in the world, which aspires to be a reference point for culture, sports and recreation.
The incessant works to complete the major projects in The Ellinikon, as well as a series of major investments, renovations and upgrades of marinas that are currently underway along the Athenian coastline, from the Southern Suburbs to the Temple of Poseidon in Sounio, portend further growth in the real estate market.Real estate agency data shows an upward trend in property values in 2025, despite earlier forecasts of a decline in prices. The largest increase is recorded in popular tourist destinations and large urban centers, especially in the Southern Suburbs of Attica and the Athenian Riviera, with the market dynamics being steadily fueled by high demand, mainly from foreign buyers, in view of the completion of large projects.
The big investments
For example, the Aenaon Park in Faliron Bay, expected to be completed in 2028, is an emblematic project based on the principles of the European Bauhaus, constituting an example of excellence for public investment, not only for Greece but also for the whole of Europe. This coastal Mediterranean Park, covering an area of 540 decares, with the leasing from Hellenic Public Properties Company of the Tae Kwon Do and Water Square for the next 40 years, will create a single arc of greenery and urban regeneration that will upgrade the quality of life of the residents of the Southern Suburbs and Attica more broadly.
In combination with LAMDA Development’s emblematic projects, the largest – by Greek and European standards – urban regeneration in The Ellinikon, as well as the luxurious hotel units that are constantly being added to the area, tourism, the attraction of foreign investors and the demand for high-standard real estate and accommodation services are on the rise. For example, Astir Palace Vouliagmeni, under the control of shipowner George Prokopiou, is evolving into a leading luxury destination on the Athenian Riviera. With three main areas of activity – hotel, marina and beach (Astir Palace, Astir Marina and Astir Beach respectively) – it offers a comprehensive hospitality experience for VIP guests, with spaces that are ranked among the most expensive in the world. The complex is being remodeled based on a study by the Aeter Architects architectural firm, which also prepared the study for the Four Seasons hotel, and includes collaborations with internationally recognized luxury houses, as well as entities such as the administrator of the ports of the Principality of Monaco, Ports de Monaco. The Marina’s land area hosts boutiques of the most famous brands, from Louis Vuitton, Dior, Gucci and Bottega Veneta to Saint Laurent, Zegna, Rolex and Dolce & Gabbana Casa.
Meanwhile, a series of investments in Glyfada, Voula and other municipalities of the Southern Suburbs are changing the landscape on the coastal front. Indicatively, one may note the One&Only Aesthesis in the old Asteria of Glyfada, an investment by Grivalia, as well as the Athens Riviera glamping resort on Voula Beach A’. Also, the investment in Roc Club, Cape Sounio by Grecotel, Ace Hotel & Swim Club Athens, a project by Brook Lane Capital in Glyfada, as well as projects such as the Saronida Olympos Golf Project in Saronida, despite the delays, remain promising strategic investments of around 800 million euros.
Expectations are also high for the Mandarin Oriental, which is being developed in collaboration with LAMDA Development and TEMES, as well as the Hard Rock Hotel & Casino Athens, a collaborative project between Hard Rock International and GEK Terna.
Finally, it is noted that the Stavros Niarchos Foundation Cultural Center, in the Faliron Delta, as well as the marinas, are emblematic points of reference for the Athenian Riviera. Furthermore, the development plan for the new Alimos Marina by Reds, a member of the Ellaktor Group, is underway, which envisages the creation of a modern and attractive leisure center. Also, the Flisvos Marina, a member of the LAMDA Development group, is being upgraded, as is the Agios Kosmas Marina, the prestige of Astir Marina is being enhanced, while upgrade investments are also being made in the Lavrio Marina, managed by Olympic Marine, with the development of real estate in the port of Lavrio.
Published in “White Paper: The Big Business of the South”, NouPou Media’s special edition spotlighting the current landscape and future prospects of the Athens Riviera.