Why should you choose Thessaloniki for living and real estate investments?

General overview of Thessaloniki

The second largest city in Greece, Thessaloniki, located at a considerable distance from Athens, also serves as the administrative center of central Macedonia. With a history older than three thousand years, the city is full of evidence of the influence of various civilizations, such as Roman, Byzantine and Ottoman. Its historical part, known as Ano Poli, is listed as a UNESCO World Heritage Site, which emphasizes its value and uniqueness. In these places were born.KirillandMethodius, who became the founders of Slavic writing and contributed to the spread of Christianity in this region.

Economic importance of Thessaloniki

The economy of Thessaloniki is also important for the whole country. The city is the second largest port in Greece, located on the Aegean Sea, at the Gulf of Thermaikos. This port is second only to the Port of Piraeus in terms of cargo traffic, which confirms its strategic importance for the economic situation in the country.

Unlike many resorts, life in Thessaloniki does not stop even during the winter months. Regular events are held here:

• cultural events,
• international companies are operating,
• and local stores offer a variety of goods.

Education and climate

Among Thessaloniki's striking features is the presence of many higher education and research institutes, which attracts both locals and foreign investors looking to settle down in Greece. Although Thessaloniki is not a typical resort destination, residents can enjoy a comfortable climate and be just minutes away from the coast with picturesque beaches. In addition, the convenient ferry service makes it easy to reach the various Greek islands.

Transportation and accessibility

As for the transport accessibility of Thessaloniki, there are regular air services from Moscow to this city by various carriers. For example:

• “Aeroflot”andEllinairThey are offering direct flights.
• while"Vim-AviaandAegean AirlinesThey operate routes with transfers in European cities.

The travel time is about three hours and twenty minutes. At the end of August, the estimated cost of a return ticket is around 18,000 rubles.

Real estate market

The Greek real estate market has seen significant changes in recent years, especially against the backdrop of the economic problems that started in 2009, as in many European countries. This situation has had a significant impact on housing prices. According to official statistics, real estate prices have fallen by more than 40% since the beginning of the crisis.

Ten years ago, one of the key streets in Thessaloniki – Tsimiski Street – was among the most expensive not only in Greece but also in Europe in terms of rental and purchase prices for apartments. However, in recent years, the situation has changed dramatically, and today prices have significantly decreased. In 2016, the Bank of Greece reported a decline in residential property prices in Athens by 43.8% and in Thessaloniki by 45.3%. In resort areas, the price drop was less pronounced, making the real estate market in these cities more attractive to new investors and buyers.

Today offers investors unparalleled opportunities to invest in real estate in Thessaloniki with the aim of achieving stable profits in the future. Experts note that the current price decline has reached a critical level – the cost of residential properties has significantly dropped, and only a few developers or owners are willing to part with their apartments or houses at prices below cost.

The variety of offerings in the real estate market

The real estate market in and around Thessaloniki offers a diverse selection, allowing potential buyers to find:

• affordable studios and apartments on the secondary market, aimed at students;
• luxurious residential complexes in popular eastern areas for permanent living;
• high-quality properties amidst picturesque natural surroundings in prestigious areas such as Panorama and Pilie.

Developed infrastructure and transportation accessibility

The modern and well-developed infrastructure of Thessaloniki, combined with good transport accessibility, creates convenient conditions for the lives of local residents and tourists. Various modes of transport are available here:

• automotive;
• air
• railway
• nautical.

Why should you choose Thessaloniki?

So why should Thessaloniki be the place to go? This city serves as an important link between Europe and Asia. Thessaloniki plays a key role not only in the cultural and economic life of the region, but also as a strategic military destination on the continent. In recent years, the significant increase in cargo traffic through the port of Thessaloniki is due to the increasing presence of the global maritime shipping company, China'sCOSCO.

The city has a major international airport which provides access to scenic parts of Greece such as Halkidiki, the Holy Mountain, Thrace, Epirus, Kastoria, Vergino, Meteora and Central Greece, including Greek Macedonia (not to be confused with the North Macedonian capital Skopje).

Cultural and historical significance

Thessaloniki holds an important position not only as the capital of Northern Greece but also as one of the major cities on the Balkan Peninsula, which encompasses several countries. Additionally, this city serves as the only route for Russian tourists to the popular Greek destination of the Halkidiki Peninsula. In recent years, Thessaloniki has transformed into a "central hub" for international companies in Greece, providing opportunities for long-term housing rentals for their employees.

Historical heritage

The history of Thessaloniki spans approximately three thousand years, and this centuries-old heritage is reflected in numerous museums, historical monuments, theaters, and regular cultural events. The city is actively constructing a modern and high-quality metro system that will be able to compete with Athens'. Thessaloniki enjoys a favorable climate suitable for year-round living, with mild winters and a warm coastline in the summer.

Greek cuisine

Greek cuisine is also worth mentioning, full of traditional dishes characteristic of Northern Greece, which requires a special mention. Fresh local produce, seasonal fruits and vegetables, olive oil, meat delicacies, seafood, various cheeses and wines, as well as pies, stews and soups with aromatic herbs and spices, delicious desserts and dairy products are just a few more reasons to stay longer in Thessaloniki and enjoy all the delights this magical city has to offer.

Education in Thessaloniki

Thessaloniki is an outstanding example of a city with a high level of educational facilities for both pupils and students. This European city is home to excellent educational institutions, includingAmerican Pinewood School,American farm school,German educational institutionand the private Greek schools "Anatolia" and "Mandolidis". In addition, the largest university on the Balkan Peninsula is located here - theAristotle Universitywhich attracts students from all over the world.

Geography of the city

The geography of Thessaloniki is divided into three key zones:western,centralandeasternThe western part of the city is considered more affordable for housing. Here, you can see numerous residential complexes, and due to the reasonable prices of new homes, many families choose spacious apartments in this area.

Central part of the city

The central area of Thessaloniki functions as a large shopping center, housing thousands of stores and offices, alongside residential spaces. Property prices here are significantly higher, especially near the coastline.

• For example, a stylish apartment with an area of about 100 square meters, located in the city center just 50-100 meters from the sea, can cost around150,000-200,000 euros.
• However, a similar apartment located in a building on the first line by the thermal bay of the Aegean Sea could cost the buyer500,000-600,000 euros.

This is because, in the second case, the accommodation offers an impressive view of the sea without any obstructions.

East side of the city

As for the eastern part of Thessaloniki, it is renowned for its high status and developed infrastructure, which includes not only residential buildings but also a variety of cafes, restaurants, banks, and shops. Housing prices here are significantly higher than in the western area, sometimes by two times or more.

Real estate market and buyer preferences

The real estate market analysis of Thessaloniki shows that it attracts buyers who wish to settle here permanently. Many families choose this city for a comfortable life and quality education for their children, preferring local educational institutions, which are predominantly private schools and universities. The location of educational institutions often becomes a determining factor in choosing the neighborhood where housing will be purchased.

Requests from Russian buyers

Russians are mainly focused on purchasing apartments, houses and villas in the eastern part of the city, as well as actively investing in office and commercial space in the center of Thessaloniki. High demand is observed for prestigious neighborhoods such as:

• Panorama
• Pilea
• Seaside Calamaria
• Southeastern suburbsFor example, Therma, Kardia, and Piraeus.

Life in the eastern parts of the city implies a high level of comfort and prestige, making real estate purchases in these areas very popular. At the same time, the city center remains attractive for business. It serves as a tourist hub, and smart investments in commercial real estate here can yield stable income even in challenging economic times.

Despite various circumstances, Thessaloniki remains an attractive place to live and do business, combining modern educational opportunities with a unique atmosphere.

Prospects for the real estate market in Thessaloniki

When the economic crisis comes to an end, as experts suggest, access to real estate in urban areas will remain just as challenging as it was before the crisis began. Housing prices, as is common in any resort area, are directly dependent on geographical location and the overall condition of the properties offered.

Prices for new buildings

Currently, you can find new residential buildings on the outskirts of Thessaloniki starting at€1000per square meter. Such prices are also typical for types of housing like townhouses and villas.

Apartments in the center of Thessaloniki

If you pay attention to the center of Thessaloniki, you can find decent apartment options with great views and convenient locations. However, it's worth noting that many of them require significant renovations, and the price of these square meters varies from€1000to€1100Even in prestigious areas like Panorama, there are offers for properties that require major renovations, in the price range of€1200to€1400per square meter.

Premium real estate

For more affluent clients, new premium-class buildings are available, which include elegant apartment complexes or villas, with starting prices ranging from€2500to€2800per square meter. For example, one can consider a villa with an area of235square meters in a well-maintained residential complex called "Architect," the cost of which will be€670,000.

• Living room with a fireplace
• Spacious kitchen-dining area with built-in furniture and access to a well-maintained garden.
• Two bathrooms and a separate guest toilet.
• Balconies and a separate bedroom with a bathroom located on the basement level.
• A spacious area for a spa, home theater, or storage facilities.
• Convenient pool

Luxury real estate

Luxury real estate in Thessaloniki and its surroundings can cost from€1 millionto€2.7 millionFor example, for€2.7 millionIt is possible to become the owner of a luxurious villa with a modern architectural design, covering an area of more than700square meters and a plot of land in28hundreds. This housing will include:

• Swimming pool
• An exciting panoramic view of the sea
• Spa treatment area
• Gym
• Game room
• Private night club
• Basketball court
• Open-air cinema
• Lunch area designed for30person

Prices for apartments in different periods

When comparing the average prices of new apartments with an area of about100There are significant differences in square meters in various parts of the city of Thessaloniki:

• In the west of the city, you can purchase such apartments for€100,000
• In the east, the cost starts at around€200,000and above
• Finding a new apartment in the city center is quite difficult; the options that may be available here often come at a higher price.€1 millionfor housing with an area of100square meters

Secondary housing market

As for housing in the secondary market, an apartment with an area of100square meters, located in a house that is20-40to the west of Thessaloniki, you can purchase for an amount of about€50,000-€70,000In the center, similar apartments cost from€150,000to€500,000...which depends on the specific location, while on the eastern side, the price ranges are within...€100,000to€200,000.

Rental of office and residential spaces

In different areas of the city, it can be observed that the rental prices for both office and residential spaces show almost no significant differences. This results in the cost of renting one square meter of office space being comparable to that of a square meter of housing. The consequences of the financial crisis have had a significant impact on the rental market, leading to a decrease in both rental rates and annual yields.

In the new reality, the rental of various commercial and residential spaces remains quite in demand. However, experts highlight the rental of expensive office spaces in the city center as one of the most profitable areas.

Short-term rental: new trends

One of the new trends worth noting is the rapidly growing segment of short-term rentals. Thessaloniki attracts a large number of tourists who often visit the city year-round to enjoy leisure time, excursions to the Meteora or the sacred Mount Athos, as well as to participate in shopping tours.

The tourism and transport infrastructure in Thessaloniki is well-developed, providing travelers and businesspeople the opportunity to combine visits to the city with trips to neighboring countries such as Bulgaria and Turkey. This creates additional prospects for property owners, as they can expect both tourists and employees on business trips.

Requirements for rental housing

It is important to note that the rental housing should be located in the city center, in close proximity to key tourist attractions and with convenient access to public transport. Recently, companies have started to emerge in Thessaloniki that specialize in renovating and redesigning small old apartments for subsequent short-term rentals.

Advantages of short-term rentals

• High liquidity
• Significant yield
• A less complicated process of evicting tenants compared to long-term rentals.

The expected return from short-term rentals in Thessaloniki ranges from5 to 8%per year. However, this form of rental is not without risks, such as difficulties in managing real estate, the possibility of vacancies, and faster wear and tear of the property compared to long-term rentals.

Long-term rental: stable demand

As for long-term rentals, it is worth highlighting the stable interest from tenants, which remains even in the face of economic difficulties. This is due to the fact that many citizens are finding it difficult to obtain mortgage loans.

For investors focused on long-term rentals, attracting students is becoming a promising direction, as Thessaloniki is home to Greece's largest university, Aristotle University.

• About 95,000 students study at this educational institution.
• Approximately 5,000 teachers work here.

This creates a stable demand for rental housing. The expected return on investment in student housing and long-term rentals in Thessaloniki averages3-5%per year. Thus, both short-term and long-term rentals represent an attractive and promising sector for investment in this city.

Choosing an apartment for rent

Experts emphasize that it is not practical to consider large apartments for rental. This is especially relevant for students, for whom it is crucial that the rented property is located near educational institutions.

When considering long-term rentals, it's important to pay attention to areas with rich infrastructure: schools, shops, and medical facilities. Such places include Toumpa, Kalamaria, Panorama, Pilea, and the eastern part of Thessaloniki.

It is also important to consider that the housing you rent may serve not only as a place to live but also for other purposes if needed.

Buying real estate in Thessaloniki

When it comes to buying real estate in Thessaloniki, experts recommend considering the changes happening in the market. Currently, property prices in this region have significantly dropped, and the ongoing economic crisis in the mortgage sector is creating opportunities to acquire quality properties at reasonable prices.

Experts warn that the current decline in prices has reached critical levels, and it is unlikely that owners or builders will be willing to sell apartments below their cost. Therefore, it is important to pay attention to properties in a timely manner, especially during economic instability, in order to potentially profit from an increase in their value when the market recovers in the future.

The significance of location

The location of the property undoubtedly plays a key role for future owners. Even with falling prices in the market, residential properties located in prestigious areas maintain their value much more steadily and have a high chance of successful rental or sale.

A low price is not always a sign of a good deal. For example, properties priced around 10,000 to 15,000 euros may have serious drawbacks related to their location, quality of construction, and accessibility of infrastructure. These factors significantly affect the liquidity of the real estate.

It is optimal to purchase a small apartment in an elite area rather than a spacious home at an attractive price in a less sought-after part of the city. This will provide you with ease in renting it out, as well as increase the chances of significant value growth in the future, making it easier to sell if necessary.

Temporary rental for choosing an area

If you still can't decide on the type of real estate and its location, you can always try "trying on" the city for yourself. Consider the option of temporarily renting an apartment or house for a period of six months to a year. During this time, you will be able to get to know different neighborhoods and choose the most suitable one, as well as determine the type of property that meets your requirements.

Hiring a realtor

Don't miss the opportunity to find a reliable and experienced realtor who is well-acquainted with the local market. Working with such a professional will help you avoid many mistakes and misunderstandings, which is especially important when buying property abroad.

Professional assistance is key at every stage of the transaction, and choosing the right agent can significantly simplify your task overall.

Conclusion

In concluding the article about Thessaloniki, I want to emphasize the uniqueness and diversity of this remarkable city. Thessaloniki is not only a historical treasure but also a modern, dynamically developing center that offers numerous opportunities for both living and business. It is here that rich cultural traditions intersect with contemporary trends, creating a harmonious blend of the past and the present.

Why should one pay attention to Thessaloniki?

Every year, more and more people looking for a new place to live or invest are turning their attention to Thessaloniki. The appeal of this city is not limited to its history and architecture. Its convenient geographical location, developed infrastructure, and favorable climate make it an ideal place to live year-round. Here are a few reasons why you should consider Thessaloniki:

• Cultural diversity:a multitude of museums, theaters, and cultural events.
• Emerging real estate market:great investment opportunities.
• Comfortable climate:mild winter and warm summer.
• Amenities for living:good infrastructure and transportation links.

Investment opportunities

It is also worth noting that Thessaloniki is not only continuing to develop but also presents an excellent opportunity for real estate investments. The current market situation makes this city truly unique. The decline in housing prices opens doors for new investors ready to take advantage of existing opportunities and contribute to the future of this beautiful region.

Result

I hope this article has conveyed to you all the charms and advantages of Thessaloniki. This city, with its deep roots, history, and dynamic pace of life, is undoubtedly worthy of attention from both tourists and those looking for a new place to settle down. I am confident that anyone who decides to visit or settle in Thessaloniki will discover a wonderful world of opportunities, comfort, and beauty.