Property purchase in Athens or Thessaloniki? Thessaloniki leads the surge in prices

Athens or Thessaloniki? How to make your choice

Athens remains the largest and most complex residential market in the country, with strong activity in central, coastal, and up-and-coming areas. At the same time, Thessaloniki is the city drawing attention in 2026, as it combines stronger price appreciation, new transport infrastructure, and entry points that in many cases remain more accessible than the premium segments of Attica.

This trend is not temporary. Between 2021 and 2025, the average asking price for residential property increased by 63.5% in Thessaloniki, compared to 41.5% in Attica, highlighting that the city is not merely following the market’s upward trajectory but leading it in momentum.

As noted by George Petras, CEO of Engel & Völkers Greece, “The next phase of the market will not be defined by speed, but by correct positioning and the quality of choices.” This observation captures the essence of the Athens versus Thessaloniki question: it is not enough to focus solely on price, but on where one positions within the evolving map of each city.

Why buy property in Athens

Athens continues to represent the most mature residential market in Greece. It offers extensive geographic and qualitative diversity, from apartments in dense urban districts to high-specification homes in the southern suburbs and along the coastline. Athens combines vibrant city living, rich history, and a broad range of budgets.

In terms of data, the Municipality of Athens recorded the highest annual increase in average asking prices in Attica for 2025, at 11.6%, demonstrating that demand for central and regenerating areas remains strong. At the same time, prime locations confirm the enduring appeal of the capital: in the first quarter of 2026, the southern suburbs reached €4,167 per sq.m., while Vouliagmeni climbed to €7,333 per sq.m.

In simple terms, the Athens residential market is best suited to buyers who prioritize liquidity, a wide spectrum of choices, risk diversification across locations, and the long-term value of property within the country’s largest metropolitan market.

Why Thessaloniki stands out in 2026

Thessaloniki has entered a new phase of maturity. According to the Engel & Völkers Market Report, the city is not merely recovering but moving into a more structured period of sustainable growth, supported by demand linked to its role as a hub for education, healthcare, logistics, and technology.

The first and most visible pillar is the metro. The main line is now operational with 13 stations from the New Railway Station to Nea Elvetia, while the extension to Kalamaria is expected to be completed by summer 2026, adding five new stations. This reshapes accessibility and enhances the appeal of areas now better connected to the city center and the eastern axis.

The second pillar is infrastructure and urban regeneration. The redevelopment of the Thessaloniki International Fair is progressing as a landmark project in the city center, featuring a large public green park, extensive leisure spaces, and underground parking exceeding 600 spaces. The timeline foresees contractor selection by the end of 2026 and construction commencing in early 2027. At the same time, the Stavros Niarchos Foundation Pediatric Hospital under construction further strengthens the city’s role as a regional healthcare hub.

The third pillar is diversity of options. The same market can offer investment apartments in central Thessaloniki around €3,000 per sq.m., emerging lower-entry areas such as Vardaris, as well as more family-oriented or premium locations like Thermi and Kalamaria. This internal differentiation is what makes Thessaloniki particularly compelling for a wide range of buyers.

Three areas in Thessaloniki with strong buyer interest

Historic Center

The Historic Center remains the defining market for those seeking immediate access to daily urban life, universities, commerce, landmarks, and both short- and long-term rentals. The market operates at two speeds: below Egnatia Street, average prices are around €3,500 per sq.m., while above Egnatia they are closer to €2,300 per sq.m. The housing stock is dominated by apartments and smaller units, with approximately 60% apartments and 40% studios overall. Demand below Egnatia is driven by both owner-occupiers and investors, while above Egnatia it is more investment-focused, particularly for student housing and short-term rentals. Buyers place strong emphasis on post-seismic buildings and proximity to high-traffic locations.

Vardaris Area

Vardaris stands out as a micro-market with strong potential for capital appreciation, particularly for buyers seeking a lower entry point with a clear investment orientation. Average prices are around €2,250 per sq.m., lower than both the Historic Center and the eastern suburbs. The housing stock is heavily skewed toward smaller units, with approximately 50% apartments and 40% studios. Demand is primarily focused on investment properties for students, professionals, and tourists. Key factors include the presence of an elevator, renovated common areas, and good access to the city center and public transport. The expectations driven by the metro and regeneration projects are a major reason the area is firmly on buyers’ radar.

Thermi Area

Thermi is one of the strongest alternatives for those seeking residential property in Thessaloniki with a focus on quality of life, new developments, and family use, without losing its investment appeal. The average price in 2025 stood at approximately €3,000 per sq.m., with newly built properties ranging from €2,800 to €3,500 per sq.m., and older or more peripheral homes between €1,800 and €2,300 per sq.m. Since 2022, total price growth has reached approximately 23.1%. The housing mix is led by apartments at around 60%, followed by maisonettes at 23% and detached houses at 10%. Buyers primarily seek newly built apartments and maisonettes with access to schools, parks, retail, and key road networks, while value for money remains a decisive factor. A significant portion of demand is also investment-driven, as the area serves professionals, students, and families seeking quality rental options.

What this means for today’s buyer

If the primary goal is the security of a large market, strong liquidity, and the ability to choose among many different micro-markets, Athens clearly maintains the advantage.

However, if the goal is to enter a city undergoing an upward reconfiguration, with measurable momentum driven by the metro, regeneration projects, and more varied entry points, then Thessaloniki currently represents the most compelling story in Greek residential real estate.

In 2026, therefore, the question is not strictly “Athens or Thessaloniki” as a binary choice. It is about which city better serves the buyer’s objective. And in terms of price dynamics, urban transformation, and the emergence of new demand clusters, Thessaloniki is undeniably the city leading the way.