The real estate market is undergoing a profound transformation—not only because of new technologies or price fluctuations—but also due to powerful forces reshaping its core: the climate crisis, social inequalities, artificial intelligence, political uncertainty, and even the redefinition of housing as a social good. Increasingly, real estate is no longer a traditional sector but a dynamic arena where environment, technology, economy, and society intersect.

This conclusion emerged from the 31st Annual Conference of the European Real Estate Society (ERES), organized by the Department of Accounting and Finance at the Athens University of Economics and Business. The event is one of the most important academic conferences in Europe for real estate research and one of the largest globally, attracting over 250 academics, researchers, and professionals from around the world.

The conference highlighted the global and European trends shaping the real estate market—trends that are inevitably affecting Greece as well. The landscape has become more complex than ever, as the sector now intersects with issues of technology, environment, social cohesion, political instability, and monetary policy.

Climate Risk and New Investment Rules

One of the key themes was the growing impact of climate change on the value and functionality of real estate. Floods, rising temperatures, and natural disasters are already leading to measurable losses and ushering in new valuation and lending rules. Research from countries like the Netherlands and Australia emphasized the importance of green finance tools, mandatory risk disclosures (e.g., flood risk), and sustainable investment portfolios.

Artificial Intelligence and Digitalization: A New Real Estate Map

Technology has become a catalyst for the market’s transformation. From AI in property valuation to digital portfolio management tools and PropTech startups, the changes are sweeping. Analysts are using machine learning to forecast trends, while buyers and investors benefit from platforms that reduce reliance on intermediaries and enhance transparency.

The Global Affordable Housing Crisis

A shortage of affordable housing, delays in new construction, and widespread difficulty accessing decent housing form a major global challenge. Research highlights the need for new housing policies, inclusive social housing models, and a reevaluation of subsidies. The spotlight was also on “vulnerable ownership,” especially among migrants and single-parent families.

Uncertainty, Interest Rates, and Geopolitical Instability

Political and monetary factors deeply affect the market. Rising interest rates, capital market volatility, and the ongoing war in Ukraine contribute to an unstable environment, forcing investors and institutions to constantly reevaluate their strategies.

Sustainability: From Certifications to Social Value

The green transition is now a core development strategy. WELL and ESG certifications, energy efficiency and circular economy metrics, carbon footprints, and socially beneficial initiatives (like public parks or the renovation of historic buildings) are becoming key parameters in property valuation.

The Role of Education and Skills

Real estate in the 21st century demands a new type of professional: economists with environmental awareness, engineers who understand legal frameworks, and educational institutions that integrate tech tools and interdisciplinary thinking. Education is no longer just background—it’s a critical factor for market resilience.

The Greek Market: Global Forces, Local Dynamics

In this global transformation, technology, sustainability, and social pressures are also redefining the role of real estate in Greece. The dynamic trajectory of prices and geographic differences recorded in Q2 of 2025 reflect how both international trends and local policies are shaping an increasingly complex and multilayered property market.

According to Spitogatos’ SPI index, which tracks the evolution of average asking prices for sales and rentals, Q2 2025 saw a 9.7% increase in sale prices and 7.2% increase in rental prices compared to the same period in 2024. Compared to the previous quarter, sales prices rose by 2.8% and rental prices by 4.2%.

The Southern Suburbs of Athens and the Cyclades remain the most expensive regions. In particular, Vouliagmeni and Voula continue to top the charts in Attica for buying and renting homes, while the Cyclades reached a median asking rent of €15.3 per sq.m. On the other end, Kastoria, Kilkis, Florina, and Pella rank among the most affordable areas, with sale prices under €1,000 per sq.m. and rents under €5 per sq.m.

At the same time, strong price growth was recorded in parts of central Athens, the western suburbs, and some Piraeus suburbs. Programs like “My Home 2,” increased tourism activity, and social initiatives in favor of tenants have influenced demand. Meanwhile, the anticipation of university admission results brought temporary market activity to student neighborhoods.

A New Real Estate Paradigm

The property market in Greece—like globally—can no longer be explained purely by supply and demand. Price is no longer determined solely by square meters or location, but by new factors that include technology, sustainability, resilience, and transparency.