Buying a property in Thessaloniki: a complete guide

Considering buying a nice property in Thessaloniki? You’re not alone!

Many people are fascinated by Thessaloniki’s historical heritage and dream of owning a charming apartment or a modern townhouse there.

Is it worth investing there, though? Are property prices increasing in Thessaloniki? How much does it cost? Is it more profitable to buy in the city center or Ano Poli? And the taxes? Which places offer rental yields exceeding 7%?

We’ve got it all sorted. No worries.

The Investropa team has extensively researched this market. Actually, we’ve organized all our findings in a pack. Get it now.

In this article, we’ll provide you with helpful information.

How is the property market in Thessaloniki?

Is the property market showing growth or decline? Let’s analyze the latest data and statistics.

Property types

In Thessaloniki, you can find various types of properties for sale, including apartments, houses, villas, and commercial spaces.

Apartments range from cozy studios to larger multi-bedroom units, while houses and villas offer options for more space and privacy.

Commercial properties encompass offices, shops, and warehouses suitable for business ventures.

Each property type offers a range of sizes, amenities, and locations to cater to different preferences and needs of potential buyers in Thessaloniki.

Should you buy or rent?

(In case you want it for yourself, not for rental purposes)

Whether you’re already living in Thessaloniki or planning to move to this Greek city, you might be weighing the options of buying a home or opting for a rental property.

Without a doubt, it’s better to buy if you want to build long-term wealth and have more control over your living situation.

Actually, decisions become clearer with the property price-to-rent ratio in mind. This metric tells us how many years of rental income it would take to pay for a property at its current price.

According to Numbeo, the property price-to-rent ratio in Thessaloniki is around 23.91, which is around the world average.

To put it simply, it will take you an average of 24 years of rental payments to buy a property in Thessaloniki. However, renting for a long time won’t let you build ownership or save money for the property.”)

Housing prices in Thessaloniki

On average, according to the last reported data from Bank of Greece, purchasing a property in Thessaloniki would cost you around $2,530 per square meter.

Naturally, property prices are quite spread out. An apartment in Thessaloniki city center might have a different price per square meter than a suburban house. You’ll get a more detailed in our pack for buying property in Thessaloniki and in Greece.

To put things in perspective, it means that, instead of buying an apartment in Paris or London, you can afford 5 properties in Thessaloniki.

Also, housing prices in Thessaloniki are 10% cheaper than in Athens.

The most expensive neighbourhoods in Thessaloniki are probably Nea Iraklitsa and Nea Krini, while the cheapest are likely Neapoli and Ambelokipi.

Trends

First, let’s acknowledge that Greece offers peace and stability to investors today. The last Fragile State Index that has been reported for this place is 55.8.

Remember this when thinking about whether it’s a good idea to buy a property in Thessaloniki.

On the longer term, the growth will still be there since Greece’s economy is expected to soar by 8.1% in the coming 5 years, resulting in an average GDP growth rate of 1.6%.

If you’re about to invest in real estate in Thessaloniki it’s a good thing because when the economy grows, people tend to become wealthier, which usually results in higher housing prices.

Also, in Greece, the average GDP per capita has changed by 8.2% over the last 5 years. It’s a satisfactory number.

This is a strong positive signal: housing prices in Thessaloniki might become more expensive in 2024 and later on.

Looking for more updated data? We’ve done a big-picture study to find out if it’s a good idea to purchase property in Greece right now.

Buying property in Thessaloniki

Buying real estate in Thessaloniki can be challenging due to the difficulty of obtaining reliable and up-to-date information. That’s why we have created the pack to buy property in Thessaloniki and in Greece.

Buying process

Within our pack, we have outlined the complete buying process. This includes the necessary documents, the applicable taxes, as well as information about where to locate properties, and more.

Here, we are providing you with a simpler version to assist you in better comprehending the information.

This is the step-by-step process to purchase a property in Thessaloniki:

1. Research the Thessaloniki property market and set a budget in euros.
2. Hire a local real estate agent with knowledge of the Thessaloniki area.
3. Find a suitable property and negotiate the price with the seller or agent.
4. Sign a preliminary agreement (known as “Synallagma”) and pay a deposit (usually 10% of the property price).
5. Hire a Greek lawyer to conduct due diligence, including verifying property ownership and any potential liens or encumbrances.
6. Obtain a Greek tax number (AFM) from the local tax office.
7. Open a Greek bank account to facilitate the transaction and transfer funds.
8. Sign the final sales contract (known as “Emphyteutic Contract”) before a notary public and pay the remaining balance.
9. Pay the property transfer tax, typically 3% of the property value, and the notary fees.
10. Register the property at the Thessaloniki Land Registry (Ypothikofilakeio).
11. Obtain the title deed (known as “Dilosi”) and a tax clearance certificate (known as “Eforia”).
12. Complete the purchase, and the property ownership will be officially transferred to you in Thessaloniki.

Also, if you’re not from the country, you might want to check our article on how to buy property as a foreigner in Greece.

Where to find a property

If you’re searching for properties in Thessaloniki, you can check it on our page

Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Greece.

What properties?

As mentioned before, the average price per sqm in Thessaloniki is $2,530. A 1-bedroom property with an area of 60 square meters would cost approximately $152,000, while a 2-bedroom with an area of 85 square meters would cost approximately $215,000.

However, prices will change based on both the property itself and its location.

You can expect prices to be steeper in the upscale parts of Thessaloniki. A residence in Ladadika might be around $610,000, whereas a property in Kalamaria could be priced at $270,000.

Still, some spots are easier on your budget. You may find a house in Evosmos for $190,000, or you might encounter a house in Polichni priced at only $160,000.

We give a more detailed pricing list in our full pack for buying property in Greece.

Common mistakes

Here are the main pitfalls when buying a property in Thessaloniki, Greece:

• Ownership disputes: Check for any historical land ownership issues or conflicting claims.
• Byzantine heritage: Some properties may have preservation restrictions due to historical significance.
• Earthquake risk: Assess the building’s seismic safety and potential insurance costs.
• Bureaucratic delays: Greek property transactions may involve time-consuming paperwork and processes.
• Tax implications: Understand property taxes and potential changes in Greek tax laws.
• Olive tree restrictions: Land with olive trees may have specific regulations for cultivation and preservation.
• Coastal property rules: Be aware of coastal protection laws that restrict development near the sea.
• Renovation permits: Ensure proper permits for renovations due to strict building regulations.

We don’t want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.

Living in Thessaloniki

Thessaloniki is a vibrant city offering a great quality of life, making it an ideal place for anyone looking to buy property.

Cost of living

The cost of living in Thessaloniki is generally quite affordable compared to other major cities in Europe. Groceries, transportation, and entertainment are all relatively inexpensive, making it a great place to live for those on a budget.

Here are some examples to better understand the cost of living in Thessaloniki, Greece:

• A glass of tsipouro at a local taverna: $4-$6.
• Rent for a one-bedroom apartment in the lively Ladadika neighborhood: $400-$700 per month.
• Monthly OASTH public transportation pass for all zones: $30-$45.
• A bottle of Vergina beer at a grocery store: $1.50-$2.00.
• Utilities (electricity, heating, cooling) for an 85m² apartment in Thessaloniki: $90-$140.
• A frappé coffee, a popular Greek iced coffee, at a café: $3-$4.
• Entrance fee to the White Tower, a historic landmark: $5-$8.
• Health insurance coverage for a family of four: $100-$200 per month.

Life in Thessaloniki

Thessaloniki is the second largest city in Greece and is a major industrial, commercial, and transportation hub. It is home to a major port, a large university, and a major airport, and is an important center for the Greek economy.

What expats usually like the most in Thessaloniki is its vibrant nightlife and its wide range of cultural activities, from its ancient historical sites to its buzzing food markets.

Unfortunately, there is a bit of crime in Thessaloniki (the crime rate index is around 53, which is not so low. Examples of crimes in Thessaloniki include pickpocketing, petty theft, and vandalism, which typically target the local population and not the expat population.

A good point for a property investor – Thessaloniki has a modern mass rapid transit system called the Thessaloniki Metro.

Access to healthcare in Thessaloniki is good, with a Healthcare Index of 55. An effective healthcare infrastructure always boost the appeal of a place, which is good for real estate.

Is it worth buying real estate in Thessaloniki then?

In Thessaloniki, buying a property can be a great idea if you’re planning to make it your long-term home or if you’re interested in investing in a city with promising growth prospects. Thessaloniki’s rich history, vibrant culture, and relatively affordable cost of living make it an attractive destination for those seeking a permanent residence. Owning property provides stability and eliminates the need for rent payments. Plus, the city’s projected economic growth could result in higher property values over time, potentially offering a solid return on investment.

If you’re looking to generate rental income, Thessaloniki’s short-term rental market, driven by tourists and students, can be a lucrative opportunity, especially in central areas.

However, buying property in Thessaloniki may not be the best choice if you’re only planning a short-term stay or if you’re financially unprepared for the responsibilities of property ownership, including taxes and maintenance costs. Additionally, while there are investment opportunities, rental yields in Thessaloniki tend to be lower than the 7% benchmark many investors seek. It’s crucial to carefully assess whether the potential rental income justifies the purchase price and expenses.

Foreign buyers should also be cautious about potential legal and bureaucratic challenges and seek local expertise. Ultimately, the decision to buy property in Thessaloniki should align with your long-term goals, financial capacity, and understanding of the local real estate market.