The residential property market in Thessaloniki is showing early signs of caution amid the ongoing war in the Middle East, according to market participants. Potential buyers are increasingly reluctant to proceed with purchases, reportedly adopting a wait-and-see approach.
Although property acquisition is traditionally viewed as a stable investment, industry sources tell Voria.gr that many prospective buyers are delaying decisions until the broader implications of the conflict become clearer. This hesitancy is described as typical during periods of geopolitical instability, when investment activity often slows temporarily. This cautious behaviour is more evident among those seeking homes for owner-occupation, while investors looking to allocate funds in real estate appear less concerned.
As a result, demand for residential property in Thessaloniki has recently shown signs of restraint. However, properties priced below €100,000 continue to attract relatively stronger interest compared with higher-value assets.
At the same time, representatives from the real estate and construction sectors express concern about the potential impact of geopolitical tensions on building material costs. They do not rule out further price increases, which could affect both construction expenses and the overall dynamics of the housing market. Any rise in material costs is expected to affect not only new-build property prices but also renovation projects, which are often extensive to meet buyers' requirements.
According to market sources, construction companies have not yet conducted detailed calculations of the impact of rising energy and fuel costs on ongoing projects. However, they are closely monitoring price fluctuations to assess possible consequences for the sector.
Data from the Hellenic Statistical Authority (ELSTAT) show that building material prices increased by 2.5% overall in February. The largest increases were recorded in copper conductors (7%), aluminium frames (4.3%), plastic pipes (4.1%), bricks (4%), wooden cabinets (3.9%), ready-mix concrete (3.7%), electrical distribution panels (3.6%), solar water heaters (3.2%) and electricity (3%).
Another factor highlighted by market representatives concerns demand from third-country buyers through the Golden Visa programme. In Thessaloniki, interest had recently declined following the increase of the investment threshold to €800,000, and the programme had not previously achieved the level of activity some had anticipated in the city. However, sources suggest that renewed interest cannot be ruled out, particularly if foreign buyers again seek Thessaloniki as a "safe haven", as has happened in the past with buyers from Israel, Ukraine and Turkey.
by Lina Tsireka - adapted from Greek by Vassia Barba
