Green houses in Greece are becoming unaffordable: why energy-efficient housing is losing out in price and demand

The Greek real estate market demonstrates a paradoxical trend: despite the active promotion of energy-efficient construction, "green" houses are gradually going beyond the financial capabilities of most buyers. In 2025, the cost gap between high-energy class housing and low-energy-efficiency facilities reached record levels.

Energy-efficient housing: high price for savings

Modern houses of classes A+, A and B are considered the most environmentally friendly and economical in terms of energy consumption. As a rule, these are new buildings or completely renovated facilities with thermal insulation, modern heating and cooling systems, as well as low operating costs.

However, the cost of such housing is significantly higher compared to old houses with low energy class (E, F, G). In some areas of Athens, the difference in price per square meter reaches 80-100%.

For example:

• In the center of Athens, "green" apartments cost on average about 3,500 euros per m2, while less energy—efficient facilities cost about 1,900 euros per m2.
• In the southern suburbs, the gap is approaching 100%.
• In the western districts of the capital, the situation is similar — energy-efficient houses are almost twice as expensive.

Why do buyers choose less energy efficient homes

Despite the advantages of low utility costs and environmental friendliness, the high initial cost makes energy-efficient real estate less affordable. With rising housing prices and limited purchasing power, many buyers focus primarily on the budget.

This is reflected in the price dynamics:

• Low-energy class facilities show faster cost growth.
• In the central areas of Athens, the annual increase in prices for such houses exceeds 10%, while for "green" properties it is much lower.
• In Piraeus and the suburbs, the picture is similar — old housing is becoming more expensive faster than the new energy-efficient fund.

Athens real estate market: shifting demand

Demand is gradually shifting towards more affordable solutions. Buyers are willing to put up with increased heating and cooling costs if it allows them to purchase their own homes at an affordable price.

At the same time, experts note that the high cost of "green" houses is due to:

• rising prices for building materials,
• rising land prices,
• strict energy efficiency requirements for new buildings,
• increasing the cost of technology and certification.

What does this mean for the Greek real estate market

The current situation creates a dual effect. On the one hand, government policy and European standards encourage the transition to energy efficient construction. On the other hand, the high cost of such facilities limits the range of potential buyers.

If the trend continues, the market may face a shortage of affordable "green" housing and a further increase in prices for old stock.

• "Green" houses in Greece cost almost twice as much as less energy efficient facilities.
• The rise in prices for old housing is outpacing the dynamics of high-end new buildings.
• Buyers are choosing affordability over energy efficiency.
• The Athens real estate market is showing a widening price gap.