Property prices and buyer behaviour in central Thessaloniki are shaped by a clear internal divide, with the city's main thoroughfare, Egnatia Street, as a notional boundary separating different market segments. According to a market report by Engel & Völkers Greece, the real estate market in the historic centre is divided, offering options for different budgets and investment strategies while continuing to attract both domestic and international interest.
Georgios Petras, CEO of Engel & Völkers Greece, told Voria.gr Thessaloniki is now drawing "a wide range of buyers, from families seeking affordable homeownership to international investors who recognise the city's long-term value". He added that prices have been rising in recent years, with annual increases exceeding 10% in some areas, although "this trend is no longer uniform, as the market becomes more selective and differentiated".
A geographical divide in demand is evident, with properties below Egnatia Street featuring a mix of owner-occupancy and rental use, including both long- and short-term leases. In contrast, demand above Egnatia is described as primarily investment-driven, with a focus on smaller apartments suitable for short-term rentals or student housing. Indicative prices reflect this divide: apartments below Egnatia range from €250,000 to €500,000, while those above Egnatia range from €100,000 to €250,000.
Overall, the market has seen steady increases in transaction volumes in recent years, with prices supported by the limited supply of high-quality properties and sustained investor interest. In terms of housing stock, around 60% consists of apartments and 40% of studios, while listings for sale include approximately 64% apartments and 32% studios. A dominant trend is the subdivision of larger flats or older commercial spaces into smaller units to improve rental yields.
Homeownership rates in the historic centre are lower than in other parts of Thessaloniki, with investment properties and rental housing more prevalent. Buyers are reported to prioritise post-1978 buildings, constructed after the city's major earthquake, as well as locations close to landmarks, squares and high-footfall areas.
Several ongoing trends include continued upward price and transaction trends, growing short-term rental activity in selected areas despite recent restrictions, and increased investor interest around new metro stations, with proximity seen as a factor in future value appreciation.
Petras stated that "the Thessaloniki real estate market has entered a new, transformative phase", adding that the city "is no longer simply in a recovery stage, but is undergoing a period of structured, sustainable growth and gradual market maturation". He attributed sustained demand to Thessaloniki's development as a hub for education, healthcare, logistics and technology.
Among the factors highlighted as strengthening the city's appeal are the metro, which has "created a new map of opportunities", and major urban projects, including the redevelopment of the waterfront, the Thessaloniki International Fair site, and the construction of a new paediatric hospital in Filyro.
by Lina Tsireka - adapted from Greek by Vassia Barba
