Real Estate Market in Southern Europe: Focus on Greece, Italy, and Spain

The real estate market in Southern Europe continues to attract investors, retirees, and those looking for homes by the sea. Among the region’s countries, Greece, Italy, and Spain stand out, offering a unique combination of cultural heritage, pleasant climate, and affordable prices. However, each has its own characteristics, advantages, and challenges. This article examines the current state of these markets, the factors influencing supply and demand, and investment prospects.
1. Real Estate Market in Greece
Greece remains attractive to foreign buyers, especially after the financial crisis, which significantly reduced property prices. The main reasons for interest in this market include:
1.1 Affordable Prices and Investment Potential
Following the 2008 crisis, property prices in Greece dropped by 40–50%, making the market appealing to investors. In recent years, the market has shown growth, but prices are still lower compared to other Southern European countries.
1.2 Golden Visa Program
Greece’s Golden Visa program grants residency to those purchasing property worth at least €250,000, attracting investors from Russia, China, and Turkey.
1.3 Popular Regions
• Athens – in demand due to short-term rentals via platforms like Airbnb.
• Islands (Crete, Santorini, Mykonos, Rhodes) – popular among holiday home buyers.
• Northern Greece (Thessaloniki, Halkidiki) – attracts European retirees.
2. Real Estate Market in Italy
Italy offers a broad selection of properties, from historic villas to modern apartments. However, the market varies greatly by region.
2.1 Price Diversity
• In Rome, Milan, and Florence, prices remain high due to economic activity and tourist demand.
• Southern regions (Calabria, Sicily, Apulia) offer significantly more affordable housing options.
2.2 €1 Homes Program
Italy attracts buyers with its €1 homes program, offering inexpensive properties in sparsely populated villages, provided buyers commit to renovation.
2.3 Investment Hotspots
• Rome, Milan, Florence – premium real estate.
• Tuscany, Liguria – country houses and wineries.
• Sicily, Sardinia, Calabria – budget-friendly investment options.
3. Real Estate Market in Spain
Spain remains one of the most popular countries for foreign property buyers, thanks to affordable prices, a mild climate, and well-developed infrastructure.
3.1 High Demand Among Foreigners
British, German, Scandinavian, and Russian buyers actively purchase property in Spain, both in coastal areas and major cities.
3.2 Price Trends
After the 2008 crisis, property prices declined, but since 2014, the market has steadily recovered. In Barcelona and Madrid, property prices range from €3,000 to €5,000 per square meter, while in Valencia, Alicante, and Costa Blanca, they are around €1,500–2,500 per square meter.
3.3 Popular Regions
• Barcelona and Madrid – attractive for rental investments.
• Costa del Sol and Costa Blanca – popular among retirees.
• Balearic and Canary Islands – luxury real estate destinations.
4. Market Comparison and Prospects
4.1 Prices and Affordability
Country Average Price per m² (€) Main Buyers
Greece 1,500 – 3,000 Europeans, Chinese, Russians
Italy 2,000 – 6,000 Europeans, Americans
Spain 1,500 – 5,000 British, Scandinavians, Germans
4.2 Market Forecasts
• Greece: Prices are expected to rise due to economic recovery and growing demand for holiday rentals.
• Italy: The market remains stable, but the south may attract more investors due to low prices.
• Spain: Continued growth, especially in major cities and coastal areas.
The Southern European real estate market offers a wide range of opportunities for buyers and investors. Greece stands out with low prices and its residency-by-investment program, Italy with its historic properties, and Spain with stability and strong infrastructure. The choice depends on individual goals—whether for investment, vacation homes, or permanent residence.