• 02/05/25 Analysis of Apartment Rental Prices in Thessaloniki (30 April 2020 - 30 April 2025)

1. Introduction
The apartment rental market in Thessaloniki constitutes a significant segment of the city's broader real estate market, reflecting its dynamics as an urban center with many students, workers, and increasing interest from tourists. This report aims to provide an analytical overview of apartment rental price trends in Thessaloniki over a critical five-year period, from April 30, 2020, to April 30, 2025. This timeframe includes significant global and local events that influenced the economy and society, and consequently the real estate market. The report's purpose is to identify and analyze the main price fluctuations, examine the impact of events such as the COVID-19 pandemic, and present rental price differences based on apartment type and geographic area within Thessaloniki. This analysis will contribute to a better understanding of the market's dynamics and the factors shaping rental prices in the city.

2. Overview of Greece’s Economic Situation (2020–2025)
The five-year period between 2020 and 2025 was marked by significant economic fluctuations in Greece, with impacts reflected in Thessaloniki's real estate market. In 2020 and 2021, the global COVID-19 pandemic caused severe economic consequences. Greece implemented multiple lockdown measures that affected various sectors, including tourism—a crucial pillar for the country. Uncertainty in the labor market and the suspension of many businesses likely led to an initial decrease in housing rental demand, as students returned to their family homes and workers in affected sectors faced financial hardship. However, government support measures may have mitigated some of the negative effects on the rental market.

Gradually, as the pandemic subsided, Greece's economy began to show signs of recovery in 2022 and 2023. Tourism, in particular, experienced a strong rebound, boosting economic activity and creating new job opportunities. This recovery led to increased demand for properties both for purchase and rent, as more people returned to cities for work and studies, and demand for short-term rentals rose due to the tourism revival.

During 2024–2025, the Greek economy, like many others globally, faced growing inflationary pressures. Construction costs also rose, affecting the supply of new housing. The government attempted to address the growing housing crisis through various policies, such as the "My Home 2" program offering favorable housing loans to young people and measures to reimburse part of the rent to vulnerable households.

On a local level in Thessaloniki, progress and the anticipated completion of the Thessaloniki Metro during the period under review is a significant development. Improved transportation infrastructure is expected to increase the appeal and value of properties in areas served by the new metro. Additionally, urban redevelopment projects and the city's general upgrade have contributed to increased housing demand in Thessaloniki.

3. Analysis of Apartment Rental Price Trends in Thessaloniki

General Overview:
In March 2025, the average rental price for housing in Thessaloniki was €8.22 per square meter, marking a slight decrease of 1.08% compared to April 2024 (€8.31/sq.m.). However, the overall picture over the five-year period shows a steady upward trend in rental prices. The highest average rental price over the last two years was in July 2024 at €8.54/sq.m., while the lowest was in June 2023 at €7.75/sq.m. These fluctuations highlight short-term influences such as seasonal demand and broader economic conditions.

Price Trends by Area:
Rental price analysis reveals significant disparities across different areas of Thessaloniki. In March 2025, the Municipality of Thessaloniki had the highest average rental price at €8.71/sq.m., while the rest of the prefecture had the lowest at €3.80/sq.m. The suburban municipalities averaged €7.37/sq.m. Specifically, in Q1 2025, the most expensive rental areas were Vardaris-Lachanokipoi (€11.1/sq.m.), the city center (€10.8/sq.m.), and 40 Ekklisies–Evangelistria (€10.7/sq.m.). The most affordable were Vasilika (€5.0/sq.m.), Mikra (€5.2/sq.m.), and Oreokastro (€5.8/sq.m.). Compared to 2020, rental prices in central Thessaloniki significantly increased, with asking prices reaching €13/sq.m., and no listings below €4/sq.m. In 2023, the average rent for studios and 51–80 sq.m. apartments in the city center was €540, indicating a rise in housing costs in the city's core.

Annual Changes:
The study recorded a significant 15.1% increase in Thessaloniki rents in 2023, highlighting strong upward market momentum. The rise continued in 2024, though more moderately, at 4.3%. The Bank of Greece reported a 16.5% rise in apartment prices in 2023 compared to 2022 and 12.1% in Q2 2024, suggesting continued price growth. For Q4 2024, the Bank estimated an 8.2% increase, potentially indicating a slowdown. Overall, in 2024, rents in Thessaloniki Prefecture rose by up to 20%, while the newspaper Eleftheros Typos reported a 9.3% increase. These various reports confirm a strong upward trend in rental prices during the five-year period, especially in 2023 and 2024.

4. Impact of the COVID-19 Pandemic on the Rental Market
The COVID-19 pandemic undoubtedly brought changes to Thessaloniki’s rental market. During the initial lockdown phases in 2020 and part of 2021, there was likely a temporary drop in demand, especially in areas dependent on students and tourism. Labor market uncertainty and travel restrictions may have caused many to delay moving or return to their family homes. However, available data does not provide a detailed picture of the exact impact on rental prices during those early years.

After the gradual easing of restrictions and the recovery of economic activity and tourism from 2022 onward, rental demand began to rise. The return of students and increasing tourist flows boosted the need for housing, leading to heightened competition and price increases. The notable rent hikes recorded in 2023 and 2024 can be interpreted as a result of this demand recovery, compounded by limited supply and inflation.

There is no direct comparative data in the provided excerpts to analyze prices before, during, and after specific pandemic phases. The analysis relies mainly on annual changes and price snapshots, making it hard to draw definitive conclusions. However, the general upward trend post-2022 suggests that recovery from the pandemic’s initial impacts contributed to increased demand and rental prices.

5. Rental Prices by Apartment Type and Area

City Center:
According to listings on Indomio in May 2025 for Thessaloniki’s Historic Center, rental prices vary significantly based on apartment size and condition. One-bedroom apartments ranged from €450 to €630/month, and two-bedroom apartments from €540 to €950/month. Data from Spiti24 in the same area showed an average rental price of €18.35/sq.m. Articles from May 2025 reported studio rents in the city center typically between €450 and €650/month. Renovated and furnished studios located below Egnatia Street could rent for €550–€650, and €480–€600 above Egnatia—emphasizing how location and condition affect pricing.

Other Areas:
In Kalamaria, listings from platforms like Spitogatos and Spiti24 (May 2025) showed rental prices for one- and two-bedroom apartments ranging from €550 to €1000/month, depending on location, size, and amenities. In Toumba, studios started around €250 and went up to €570/month, with larger apartments reaching €700/month. In 2025, Western Thessaloniki rents ranged from €8 to €12/sq.m., while in Eastern Thessaloniki—specifically the suburban area of Thermi—rents ranged from €10 to €12/sq.m.

Suggested Table: Average Monthly Rental Prices (€/month) by Apartment Type and Area (May 2025 – Indicative Listing Prices)

6. Market Indicators and Measurements

Spitogatos Property Index (SPI):
The SPI is a key tool for monitoring changes in asking prices in Greece, including rentals. Based on large volumes of listing data from Spitogatos, it recorded rental price increases between Q1 2024 and Q1 2025 in the Municipality of Thessaloniki (+13.50%), the Regional Municipalities (+11.80%), and the rest of the Prefecture (+5.60%). In Q4 2023, the average rent in Thessaloniki rose by 10.70% compared to the previous year.

Bank of Greece:
Publishes residential property price indices including rent and housing quality. Annual changes in Thessaloniki apartment prices were 16.1% in Q1 2023, 12.1% in Q2 2024, and 8.2% in Q4 2024.

ELSTAT (Hellenic Statistical Authority):
As the official statistics authority, ELSTAT provides data on inflation and cost of living, including housing and rents. In March 2025, total housing costs in Greece rose by 5.9% year-over-year, while residential rents specifically increased by 10.5%.

7. Conclusions and Outlook
In summary, Thessaloniki’s apartment rental market between 2020 and 2025 saw a steady upward trend in prices. Despite a possible initial slowdown due to the COVID-19 pandemic, economic recovery, tourism growth, and limited supply of quality rental housing contributed to significant price increases—especially in 2023 and 2024. The city center and certain eastern areas experienced the most substantial hikes.

Looking ahead, Thessaloniki’s rental market may see either stabilization or a continued modest price increase. Having already undergone significant upward adjustments, factors like inflation and limited supply are expected to keep influencing prices. The completion of the Thessaloniki Metro and other urban development projects will likely boost the appeal of specific areas, potentially leading to further rent increases there. Ongoing monitoring of economic indicators and real estate trends is essential for understanding the future trajectory of rental prices in Thessalon