Apartments in Piraeus: Israeli Real Estate Investors Find a New Target in Greece

After years in which Israeli real estate investors who chose to put their money into the Greek housing market focused mainly on the neighborhoods of central Athens, companies operating in the Greek market are beginning to mark a new destination: Piraeus. Israeli developers who know the place closely estimate that it may be one of the areas that will attract more investors in the coming years. The port city, which for years was perceived mainly as a transit station on the way to the Greek islands, is undergoing renewal and development processes and is attracting investments thanks to a combination of tourism, port activity, academic institutions, improved transport, and prices that are still partly lower than those of the Greek capital.

Will these data indeed make it the next hit? It is too early to tell, but on the ground, as mentioned, they are already starting to see the direction. A journalists' trip conducted by the Israeli real estate company Palmo in Athens and Piraeus last month illustrated the change in the centers of interest. Alongside a visit to projects in neighborhoods in Athens that are already familiar to Israeli investors, such as Kypseli and Nea Chalkidona, the company presented buildings it purchased in the center of Piraeus and a new residential project it is promoting in the city.

"Piraeus is becoming a major investment hub, and not only for Israelis," says Peleg Yariv, CEO and co-owner of Palmo. According to him, three main demand engines are currently operating in the city: "The first is tourism and cruises. There are tourists who come specifically to Piraeus because of the port, restaurants, and shopping, and there are tourists who start or end a cruise there and stay for a night or two. The second engine is the university and colleges, and the third is the port, trade, and employment." The company estimates that the combination of the three engines creates demand from several audiences: students, staff of shipping and trade companies, tourists, and local residents. The public university has more than 10,000 students, and alongside it, British colleges also operate in the city. Cruise activity includes about 1.85 million passengers a year, of whom more than a million are passengers who start or end the cruise in Piraeus and do not just pass through the port.

Housing instead of offices

Piraeus is currently connected directly to the center of Athens and the airport via the metro. Alongside the commercial port, marinas, shopping centers, and shopping streets operate there, and in some areas, projects to convert office buildings and old structures into small apartments are advancing. Last month, for example, work began on converting the historic Keranis tobacco factory into a residential and commercial complex of about 29,900 sq. m, which will include 408 housing units. The project is one of several large ventures changing the face of the city in recent years. At the beginning of the month, progress was reported in the tender to convert a building of the Greek National Insurance, opposite the Piraeus railway station, into a hotel.

One of the projects promoted by Palmo is PORTA Piraeus in the city center. The building is located about 180 meters from a metro station, about 250 meters from the prestigious Zea Marina, and about 600 meters from the university. The project includes small apartments, some less than 25 sq. m, alongside duplex apartments, as well as common areas such as a gym, laundry room, lounge, and meeting room. The company says that one of the buildings they purchased in the city was bought from the Greek Orthodox Church in a tender held with particularly short notice.

According to Yariv, "the company tries to locate properties before they reach wide marketing. We try to buy properties off-market. Once a property enters the market and they start receiving offers for it, the price rises and it becomes less of an opportunity. Therefore, we buy from banks, in church tenders, or through brokers before the property is published." However, the very fact that a property is sold off-market does not guarantee that it is a good deal. Purchasing old buildings and converting them into housing requires engineering and legal checks, examination of building violations, zoning changes, and obtaining permits. These can lengthen timelines and increase costs.

Apartment from 90 thousand euros

One of the main reasons Greece attracts Israelis is the relatively low entry threshold compared to the housing market in Israel. According to Yariv, in some projects in Athens, one can still find apartments whose price starts at about 90 thousand euros, although the price varies significantly according to the neighborhood, the condition of the property, its size, and the type of project. In the company's project in the Kypseli neighborhood in Athens, intended mainly for rental to students, a two-room apartment was presented that was purchased for about 170 thousand euros and is rented, according to the company, for about 800 euros per month. Smaller apartments in the project are rented for about 650 euros.

"Our main anchors are tourism and students," explains Yariv. "When we look for buildings intended for short-term rental, we want to be where there are tourists, fashion brands, and restaurants. In long-term rental projects, we look for proximity to universities." According to him, the demand for new apartments is particularly prominent against the background of the old construction stock. "In most neighborhoods, urban renewal has not yet been carried out. When a new building arrives, people are willing to live in a smaller apartment and pay a little more per sq. m. We have waiting lists for new buildings intended for long-term rental."

The rise in price has moderated

According to data from the Bank of Greece, which publishes the country's apartment price index quarterly, apartment prices continued to rise this year as well, but the rate of price increases moderated — a figure indicating that the market is still growing but is no longer at the rate of increases recorded in the first years after the crisis. Thus, while in 2024 prices rose by an average of 9.1% and in 2025 climbed by 8.1%, in the first quarter of 2026 an annual increase of 5.7% was recorded, and in Athens the rate of increase was 5.2%.

Like many companies operating in the field, Palmo also presents yield forecasts to investors. According to the company, the expected yield in long-term rental is about 5%–5.5%, while in short-term rental it may reach 8%–10%, depending on occupancy in tourist areas. But renting to tourists involves higher volatility, management, cleaning, and maintenance expenses, and the risk of periods when the apartment is not occupied, and this must be taken into account.

"In short-term rental, there are months with 90% occupancy and there are months with 40%," says Yariv. "The potential can be higher, but it is not a fixed income. In long-term rental, the yield is usually lower, but it is more stable." According to him, the company does not guarantee a yield: "Whoever guarantees a yield should leave the room and run from it. Sometimes they sell the apartment at a higher price and pay the investor the 'guaranteed yield' out of his own money. We present a business plan, but we do not guarantee a result."

Regulation also limits the possibility of using every property as a vacation apartment. Greek law limits short-term rental of properties purchased under certain Golden Visa tracks, partly due to the shortage of apartments for local residents. Therefore, investors cannot automatically assume that they will be able to list the apartment on platforms such as Airbnb. Violation of the ban may lead to fines and cancellation of the residence permit.

In the past, it was possible to obtain a Golden Visa in Greece by purchasing a property for 250 thousand euros. In recent years, the amounts have been raised, and today an investment of 800 thousand euros is required in the Attica region, which includes Athens and Piraeus, and in other sought-after areas. However, a 250 thousand euro track remains for commercial or industrial properties that have been legally converted into housing and for buildings for preservation that have undergone restoration. This track has become particularly relevant in Piraeus, where there are old office and commercial buildings. It allows investors to obtain residency for a lower amount than the regional threshold, but the deal is much more complex than purchasing an existing apartment. It requires ensuring that the commercial use is registered legally, that the conversion has been approved, and that all permits and plans comply with the law.

Risks in purchasing a property

Alongside the potential, Yariv points to Greek bureaucracy and timelines as the main risks in purchasing a property in Piraeus in particular and in Athens in general. "Anyone who wants to start buying an apartment here alone needs to understand that it is a movie: there are documents, bureaucracy, building violations, and checks. You have to work at it," he says. According to him, the main problem in development projects is the possibility of delays in delivery. In Greece, there is no compensation mechanism identical to that set in the Israeli Sales Law, so one must check what the purchase contract determines. Palmo, he claims, includes a compensation clause in its agreements with its clients in case of delay. "The risk is the time factor. If a person receives the apartment after a year or after two years, it is critical for him."

The recommendation, therefore, for investors is to check the track record of the company they are dealing with, talk to clients who have already received properties, and ensure that the company has a local team and office. Beyond that, one must take into account purchase and income taxes, management fees, lawyer and notary costs, renovation and furnishing, periods without a tenant, and currency risk. In some projects, Palmo cooperates with a Greek planning and execution company, which manages the planning and execution through a local team of architects and engineers. The company says that the advantage of the model is the concentration of all project stages under one roof, with the aim of reducing delays and maintaining execution quality. On the other hand, as in any development project, the success of the venture also depends on meeting timelines, obtaining permits, and the conduct of local authorities.

"We employ architects, engineers, and interior designers as part of the company, to provide a full response in one place," said the company's founder, Spyros Paxis, during the tour. According to him, "Greece is one of the safest countries in Europe for real estate investments, and the demand relies not only on foreign investors but also on the local market."

High demand since the war

"Since the events of October 7, the number of Israelis interested in purchasing a property in Greece has increased — not only as an investment, but also as part of asset diversification and creating a contingency plan," says Yariv. According to him, although in the first weeks of the war activity slowed down, subsequently a wave of inquiries was recorded. "People understood that they want to take care of their economic future and diversify investments in a complex reality." According to the company's data, during the last campaign against Iran, about 50 apartments were sold through Zoom meetings.

Piraeus may offer an international port, a subway, a university, and accessible prices compared to Israel, but it is not a monolith: a distance of a few streets may separate a sought-after area near the marina or the metro from a weaker street. Therefore, even when the price tag seems particularly low, the central question remains the same as in any real estate investment: who will rent the apartment, at what price, and how much will it cost the investor to reach the income presented to him. The transition from the familiar center of the capital to the port city requires a careful check of the street, the type of property, and the audience of tenants — and especially distinguishing between established market data and marketing forecasts. So will the city become the next investment destination for Israelis? This will be determined not only by prices, but also by its ability to continue to attract residents, students, and tourists — and mainly to prove that the demand presented by the companies on the ground is indeed maintained over time.

• The author was a guest of the Palmo company in Piraeus.