Rapid Rent Increases: Greece Ranks Second in EU in 2025

The housing crisis in Greece is reaching alarming proportions as the country records rapid increases in property rental costs. According to recent data, a 10.1% increase in rents was recorded in 2025. This rate places Greece in the second-highest position across the European Union regarding rental price hikes, trailing only Croatia. Cumulatively, rent increases in Greece have reached at least 40% over the last three years.

Intense Fluctuations in the Greek Market

A study by the ΚΕΦΙΜ (Center for Liberal Studies - KEFiM), based on Eurostat data, highlights Greece's significant deviation from the European average. For instance, in the fourth quarter of 2025, housing prices in the EU-27 recorded an annual increase of 5.5%, while rents rose by 3.2%. In contrast, the Greek real estate market exhibits historically sharper fluctuations and structural weaknesses.

Between 2000 and 2011, rents in Greece increased by 53%. However, during the financial crisis (2011–2018), they suffered a 26% decline due to skyrocketing unemployment and shrinking incomes. After a period of stagnation lasting until 2021, the market entered a new, sharply upward phase in 2022. As a result, 2025 rents have now surpassed pre-crisis 2010 levels. Property sales prices followed a similar trajectory. According to the Τράπεζα της Ελλάδος (Bank of Greece), following a deep decline until 2017, purchase prices in Athens alone surged by 86% between 2017 and 2025.

Unbearable Costs for Tenants

The most concerning finding from the data is the excessive burden on households. In Athens, renting a one-bedroom apartment now requires 70.2% of the average monthly income, while for a two-bedroom residence, the figure jumps to 93.6%. This represents an extreme strain on family budgets, especially compared to corresponding EU averages, which fluctuate at much lower levels—between 31%–34% for one-bedroom units and 46% for two-bedroom apartments.

Furthermore, while rents were declining during the crisis period, from 2023 onwards they have been increasing at rates approaching 10% annually, far outstripping current inflation. This effectively means that housing is becoming more expensive in real terms, disproportionately affecting lower-income groups.

Causes of the Imbalance

The primary causes of this prolonged and intensifying housing crisis are attributed to multiple interconnected factors. According to the data, surging tourism demand, combined with the rapid expansion of short-term rentals (such as Airbnb and similar platforms), has led to a drastic reduction in available housing stock. This has created a suffocating environment where demand significantly outstrips supply in major urban centers.