Thessaloniki Metro: How it affects the city’s real estate market

Which central areas of Thessaloniki will be most affected?

The most significant impact is expected in the areas where the metro stations are located and in the surrounding neighborhoods - from the city center and the New Railway Station to Nea Elvetia (New Railway Station, Dimokratias, Venizelou, Agias Sofias, Sintrivani/Exhibition, University, Papafi, Efkleidi, Fleming, Analipseos, Patrikiou, Voulgari, and Nea Elvetia).

From the first months of operation, strong demand has already been observed for properties located both above and below Egnatia Street. In particular, the Vardaris area is expected to see price increases due to improved accessibility and the overall upgrading of the neighborhood.

Changes are also anticipated in the areas included in the metro extension toward the southeast of the city, with five additional stations (Nomarchia, Kalamaria, Aretsou, Nea Krini, and the terminal at Mikra), further enhancing property prospects in those districts.

What types of properties will see the highest demand for purchase in Thessaloniki?

The properties expected to attract the strongest demand are mainly small apartments in the city center and in areas surrounding the metro stations. These are suitable for professional use - such as medical practices - as well as for investment studios.

At the same time, there is also strong demand for family apartments in southeastern Thessaloniki, where the metro line is set to expand.

How will property prices be affected in each area of Thessaloniki?

Property sale prices near Thessaloniki’s metro stations had already begun to rise over the past two years - even before the metro became operational.

According to data from the Bank of Greece, apartment prices in Thessaloniki increased by 12.1% in the third quarter of 2024 compared to the same quarter in 2023.

A common trend is also emerging: many property owners are keeping their properties off the market and planning to list them after the metro begins full operation, anticipating further price increases.

New investment opportunities in Thessaloniki

As it stands today, the Greek real estate market is a highly attractive and profitable sector, creating opportunities for significant investments. Over the past two years, Thessaloniki has drawn strong interest from investors in the Balkans and Israel, as it offers particularly high returns - among the most competitive within the European Union.

This contrasts with the situation in Israel, where property prices remain exceptionally high. Thessaloniki’s metro - one of the most modern in Europe - is expected to further upgrade and modernize the city, attracting even greater foreign investment interest.

It has been observed that many foreign investors tend to purchase older offices, apartments, or unfinished properties, renovate or reposition them, and then generate substantial capital gains by reselling them, often to fellow investors from their home countries.

The “Spiti Mou II” program and the boost to property purchases in Thessaloniki

The new housing program “Spiti Mou II” is expected to further strengthen demand for property purchases in Thessaloniki, as it facilitates first-time home ownership for individuals aged 25 to 50. The program aims to promote the utilization of older properties while supporting young buyers, contributing at the same time to the revitalization of the real estate market.

Combined with the operation of the metro and the city’s ongoing development, demand for property purchases - particularly in the center of Thessaloniki and surrounding areas - is expected to increase through the program. “Spiti Mou II” enhances access to homeownership, creating new prospects for investment in urban properties.

Are there concerns and challenges for properties in Thessaloniki?

The launch of the metro, alongside the changes and opportunities it has brought to Thessaloniki’s real estate market, has also created concerns and challenges. It is like a coin with two sides. Residents in areas near metro stations are facing significant difficulties in finding parking.

As a result, properties that offer private parking spaces are expected to see even stronger demand and further price increases. However, this may negatively affect demand for properties in the city center, where prices are already high. Prospective buyers may instead choose to purchase a property outside the center, knowing they can conveniently commute using the metro.

Why is it worth buying property in Thessaloniki?

Thessaloniki is an attractive choice for real estate investment across all property types - including apartments, penthouses, and studios - for several reasons.

• It is a popular tourist destination
  The city of Thessaloniki is a highly popular tourist destination with a rich history, continuously improving infrastructure, and a strategic geographical location - close to the Balkans and Turkey. This makes it particularly suitable for investment in tourist properties, such as Airbnb rentals and hotels.

• It offers high investment returns
  Thessaloniki is home to major universities and numerous companies with local branches, creating strong demand for short-term rentals from both students and professionals.

• It offers more affordable prices compared to other major European cities
  Despite price increases in recent years, Thessaloniki still offers more affordable property options compared to many other large European cities.

• It attracts foreign investors
  Growing demand from foreign investors - particularly from the Balkans and Israel - strengthens market values and enhances the resale prospects of properties in Thessaloniki.

Why choose Engel & Völkers for buying property in Thessaloniki?

The launch of the Thessaloniki Metro presents an excellent opportunity to acquire property in the city, whether for owner-occupation or investment purposes.

At Engel & Völkers, with a specialized team of experienced advisors who support clients at every step of the process, and a wide portfolio of properties in Thessaloniki tailored to each client’s unique criteria, we can help you find your ideal home in a simple and efficient way.