Megaprojects Transforming Greece’s Real Estate Landscape in 2025

Greece’s real estate market is undergoing a remarkable transformation, driven by a series of ambitious megaprojects across key urban centers and popular islands. These developments are not only reshaping skylines but also creating vibrant new hubs for residential living, tourism, and commerce. For property developers and investors, understanding these projects is essential to tapping into Greece’s evolving market potential.

The Hellinikon Project: Europe’s Largest Urban Redevelopment

At the forefront of Greece’s real estate revolution is the Hellinikon Project, located on the southern coast of Athens. Formerly the site of Athens’ old airport, this vast development is set to become Europe’s largest ongoing urban renewal initiative. The project includes a comprehensive residential component featuring modern homes alongside high-end hotels and expansive luxury shopping centers. A standout feature is the Riviera Tower, which promises to be the tallest “green” skyscraper in the region, emphasizing sustainable architecture and eco-friendly design.

This ambitious initiative aims to transform the former airport site into a bustling urban district, combining residential comfort, business opportunities, and recreational spaces. Its scale and vision make it a landmark project for Greece’s real estate market and a key driver for long-term investment in the capital.

New Recreational and Hospitality Landmarks in Athens

Complementing Hellinikon, two other major developments in Athens are set to further elevate the city’s appeal. The Aenaon Metropolitan Park, expected to open by 2028, will span 570 acres in the southern suburbs. Designed with sustainability at its core, this park will feature coastal trails, sports facilities, a marina, open-air cinemas, and repurposed Olympic venues. With plans to plant 4,000 trees and attract over four million visitors annually, the park will become one of the city’s premier recreational destinations.

Additionally, the redevelopment of the iconic Hilton Hotel into a luxury hospitality and residential complex highlights Greece’s growing allure to international investors. This project aims to blend world-class amenities with premium residential options, reinforcing Athens as a competitive global city for real estate development.

Infrastructure Boosts Thessaloniki’s Market Potential

In northern Greece, Thessaloniki is also benefiting from strategic infrastructure projects. The recent completion of the city’s metro baseline, combined with the ongoing Flyover project—an elevated regional boulevard—will enhance connectivity and urban accessibility. These upgrades are expected to revitalize the eastern inner suburbs of Thessaloniki, attracting new investment and strengthening the local real estate market.

Tourism’s Impact on the Greek Islands

Tourism remains a powerful force behind real estate growth in the Greek islands. The Cyclades, Dodecanese, and Crete, in particular, have seen a surge in demand from French, German, and American buyers. Many investors view properties on these islands not only as profitable assets but also as second homes, blending lifestyle with investment.

The recent boom in tourism has spurred significant property development and renovations, further increasing the islands’ appeal. This trend underscores the islands’ status as prime locations for those seeking a combination of Mediterranean charm and strong market fundamentals.

Expanding Horizons: Major Developments in Crete and Beyond

Beyond Athens, Thessaloniki, and the well-known islands, Crete is emerging as a hotspot for large-scale investments with several transformative projects underway:

• New Heraklion International Airport (Kastelli Airport): Located about 35 km southeast of Heraklion, this €1.5 billion airport is expected to be completed by 2027. Designed to serve over 10 million passengers annually, it aims to become Greece’s second busiest airport. The project includes a modern terminal, new road networks, and potential commercial and logistics zones, representing one of Greece’s largest public-private partnerships.
• Port Upgrades in Heraklion, Chania, and Rethymno: Significant investments are enhancing ports to accommodate larger cruise ships and modern cargo facilities, while new marinas support growing yachting tourism. Chania’s Souda Port is being developed as a key cruise hub for Western Crete, and Heraklion’s port expansion will boost both tourism and cargo services.
• VOAK: Northern Road Axis of Crete: This €2 billion, 300 km highway project connecting Kissamos in Chania to Sitia in Lasithi aims to improve safety, reduce travel times, and stimulate regional economic growth through modern tunnels, bridges, and bypasses.
• Healthcare Infrastructure: New hospital projects, such as the planned General Hospital of Heraklion, along with upgrades to regional health centers in Chania and Rethymno, are enhancing the island’s public services.
• Tourism & Resort Developments: Luxury resorts like the €500+ million Elounda Hills mixed-use development and eco-resorts such as the Cape Tholos Project in Lasithi, along with boutique hotels and branded residences in Chania, Elounda, and Rethymno, are further boosting real estate value.
• Sustainable Partnership Plan in Astypalea: Astypalea serves as a model of sustainable development through collaboration between the public and private sectors, aiming to transform the island into a “green” benchmark for island sustainability. The plan includes the use of electric vehicles, boosting energy self-sufficiency with renewable energy sources, and adopting innovative technologies to reduce environmental impact. This initiative further elevates the island as a leading destination and investment hub with a strong ecological awareness.

The wave of megaprojects sweeping through Athens, Thessaloniki, Crete, and the Greek islands is fueling unprecedented growth and opportunity in Greece’s real estate sector. From urban renewal and hospitality hubs to infrastructure and tourism-driven developments, these projects offer lucrative prospects for developers and investors alike. As 2025 unfolds, Greece stands out as a dynamic and promising market where strategic investment can reap substantial rewards.