Published on and written by Cyril Jarnias
Situated between the Thermaic Gulf and the slopes of Mount Olympus, Katerini is quietly emerging as one of the most interesting real estate markets in Greece for investors looking to combine rental yield, appreciation potential, and quality of life. As the capital of the Pieria region, connected to Thessaloniki by highway and railway, and backed by the “Olympic Riviera” and beaches like Paralia Katerini and Olympiaki Akti, the city checks many of the boxes that savvy buyers are looking for today.
Located in Greece, Katerini presents itself as a “second-tier” market that is still affordable, unlike major metropolises and popular islands where prices have risen sharply. Its attractiveness is supported by tourism, good infrastructure, and local sustainable development policies. For an investor, the goal is to find a property in an area capable of maintaining strong long-term rental demand.
A Local Market Still Affordable in a Greece That Has Become More Expensive
The first advantage of Katerini lies in its price level, which is significantly lower than the most strained segments of the country. In the city center, recent listing data indicates around 1,074 €/m² for properties for sale in the most expensive central area, with a floor around 761 €/m² in a peripheral neighborhood like Neokaisareia. On a national scale in Greece, where some sectors of the “Athens Riviera” exceed 4,000 €/m², the gap is considerable.
Available market indicators for Katerini provide an interesting snapshot:
| Indicator (Katerini) | Approximate Value |
|---|---|
| Price-to-income ratio | 8.60 |
| Mortgage payment as % of income | 65.50% |
| Credit accessibility index | 1.53 |
| Price/rent (apartment in city center) | 26.66 |
| Price/rent (apartment outside center) | 24.44 |
| Gross rental yield in city center | 3.75% |
| Gross rental yield outside center | 4.09% |
| Average net monthly salary | 770 € |
| Average 20-year fixed mortgage rate | 4.53% |
These figures show a market where prices have already appreciated significantly relative to local incomes, but the entry barrier remains much lower than in major urban centers. Gross yields on long-term rentals are around 3.7–4.1%, placing Katerini slightly below the Greek average (about 4.4–4.8%), but this does not account for the specific dynamics of short-term rentals, which are very prevalent on the Olympic Riviera.
For the investor, the price increase is limited in the short term by the purchasing power of the local population. Investment must therefore increasingly rely on tourist and non-local demand, which matches the profile of the city of Katerini.
The Driving Force: Growing Tourism on the Olympic Riviera
The key to the local real estate market is the Olympic Riviera, of which Katerini is the urban heart. Visitor flow is described as “significant and constantly increasing.” This rise is part of a broader trend: Greek tourism generated over 21 billion euros in revenue in 2024, a record level, and coastal and resort destinations now outperform the national average in terms of real estate price increases.
Around Katerini, several tourist hubs structure demand:
The Pieria region in Greece, at the foot of Mount Olympus, offers several examples of popular coastal destinations for second homes and tourism. Paralia Katerini is a classic urban beach with dense commercial offerings. Olympiaki Akti, 8 km away, is a seaside village with mature tourist infrastructure. Further south, Platamonas combines historical heritage with protected family-friendly beaches. Finally, Leptokaria stands out for its mixed atmosphere and more affordable prices.
This mosaic of micro-tourist markets directly feeds the rental market and real estate investment in the municipality of Katerini, which concentrates services, commerce, and year-round living. Studies of other Greek regions show that in highly touristy areas, the tourism penetration rate has a statistically significant impact on real estate prices, with spillover effects on neighboring prefectures. In other words, the tourism vitality of the Olympic Riviera does not only benefit the waterfront but also radiates into the city of Katerini and its suburbs.
Seasonal Rentals: An Already Structured Airbnb Market
One of the most telling signals for an investor is the scale of the short-term rental market in the municipality of Katerini. Available data reports a stock of approximately 472 active listings, up 8% year-over-year, in a regulatory environment that is still relatively lenient for this segment.
The supply profile shows a clear specialization:
| Airbnb Market Characteristic (Municipality of Katerini) | Share / Value |
|---|---|
| Total number of listings | 472 |
| Annual growth of active listings | +8% |
| Share of apartments/condos | 74.7% |
| Share of houses | 21.7% |
| Proportion of entire homes | 83% |
| Proportion of private rooms | 17% |
| Share of studios / 1-bedroom | 59% |
| 2-bedroom | 31% |
| 3-bedroom | 7% |
| 4-bedroom | 2% |
| 5-bedroom and more | 1% |
The dominance of small entire apartments indicates a market calibrated for couples, small families, or groups of friends, rather than organized mass hotel tourism. This format is ideally suited for individual or small-scale investment.
The economic performance is, likewise, instructive:
| Airbnb Performance (Katerini, all properties combined) | Typical Value |
|---|---|
| Median monthly revenue | $714 |
| Average revenue in high season (June–August) | $1,525 |
| Average revenue in low season | $590 |
| Top 10% revenue | ≥ $1,842 |
| Median occupancy rate | 25% |
| Top 10% occupancy rate | ≥ 65% |
| Median nightly rate (ADR) | $84 |
| ADR in high season | $131 |
| Top 10% ADR | ≥ $165 |
| Annual occupancy growth (5 years) | +3% |
| Annual revenue growth (5 years) | +5% |
| Annual change in ADR | –3% |
We observe a market that is densifying (more listings, +3% occupancy, +5% revenue), while the average nightly price declines slightly. This reflects increased competition, but also a growing capacity to fill units. For a well-positioned investor – in terms of location, property quality, and management – it remains possible to aim for performance significantly above the median, as shown by the top 10% level.
Revenue generated by a superhost managing 13 properties with an average rating of 4.8/5.
Between Long-Term and Seasonal Rentals: Balancing Yields
In traditional rentals, Katerini offers rents aligned with its profile as a mid-sized regional town:
| Type of housing (Katerini) | Average monthly rent |
|---|---|
| 1-bedroom in city center | 260 € (approx. 200–320) |
| 1-bedroom outside center | 250 € |
| 3-bedroom in city center | 425 € (approx. 400–450) |
| 3-bedroom outside center | 350 € |
Combining these rents with average purchase prices yields the gross yields of 3.7–4.1%, slightly lower than those measured in cities like Athens or Patras, but without the extreme competitive pressure and high entry values. The investor can substantially improve this gross yield by switching to short-term furnished rentals targeting summer tourism, at the cost of more active management.
This is the pre-tax net yield that the best seasonal rentals can achieve in highly touristic areas, after deducting management fees.
For an investor, the strategy therefore often involves: diversifying their portfolio, assessing risks, and optimizing returns.
– target a property well-located relative to the coastline (Paralia Katerini, Olympiaki Akti, Leptokaria, Platamonas) or in a central neighborhood connected to these areas;
– maximize the high season through platforms like Airbnb/Booking;
– balance during the shoulder season between short-term (weekends, events) and medium-term (remote workers, retirees, students, etc.).
Infrastructure: A Territory Driven by Public Investment
The solidity of a real estate market is not only measured by its beaches or Airbnb statistics, but also by the quality of its infrastructure and urban planning. From this perspective, Katerini stands out within the region of Central Macedonia.
Several major projects have already been completed or are underway.
A Complete Bypass: Fluidity and Decongestion of the Center
The construction of the Katerini ring road – a 10 km dual-carriageway with emergency lanes, five interchanges, two large bridges, and three underpasses – has transformed local traffic. This project, financed mainly by the European Regional Development Fund (over €54.7 million out of a total budget of €65.5 million), had several objectives: divert through traffic from the center, reduce congestion, cut accidents by a third, and shorten some travel times by 25 minutes.
The construction of a ring road improves the accessibility of peripheral areas, increases the value of land near new interchanges, reduces nuisances in the city center, and enhances the overall attractiveness of the municipality, particularly for tourists heading to the Olympic Riviera.
A Dense and Multimodal Transport Network
Beyond this ring road, Katerini benefits from a remarkable position:
– crossed by the PATHE highway (Patras–Athens–Thessaloniki–Evzonoi axis), the country’s road backbone;
– connected to the Egnatia Odos, the major east-west artery of northern Greece;
– served by the national railway network, with a station that directly links Thessaloniki to the south of the country;
– equipped with an urban bus network (12 KTEL urban lines) that covers the city and main localities of the area.
This accessibility, combined with proximity to Thessaloniki (about 68 km), reinforces Katerini’s appeal for those wishing to live in a quieter, cheaper city while having access to the country’s second metropolis for work or studies. For investors, this expands the pool of potential tenants beyond seasonal tourism alone.
Water, Sanitation, and Energy: A Solid Foundation
Another key element for judging the sustainability of real estate development: the capacity of technical networks. The water and sanitation company DEYA Katerinis already manages nearly 31,500 connections, distributes approximately 6 million m³ of drinking water per year, operates a 195 km water network, 170 km of wastewater network, and 145 km of stormwater network, as well as a biological treatment plant designed for 32,000 m³/day. Over 59 million euros have been invested in these infrastructures since 1983.
DEYA manages a comprehensive “Master Plan” for water aimed at securing drinking water supply in the medium and long term, especially in tourist areas exposed to droughts. For an investor, this ensures that future urban development will not compromise the quality of basic services, a crucial issue in many Mediterranean seaside resorts.
On the energy front, the municipality has an extensive natural gas network in the urban fabric, a hydroelectric plant, and a photovoltaic plant, and has engaged in several energy efficiency projects (complete and “green” modernization of a municipal sports complex, deep energy renovation of the town hall with insulation, condensing boiler, heat pump, LED lighting, rooftop photovoltaics, etc.). These initiatives contribute both to reducing public expenses and improving the city’s image among residents and investors concerned with sustainability.
A Municipality Focused on the Long Term and the Sustainable City
Since 2008, Katerini has developed and implemented a “Local Sustainable Development Strategy” structured around three pillars – economic, social, and environmental – and ten strategic axes. The first aims to improve the microclimate of the city center with bioclimatic developments: light-colored materials, vegetation, consideration of thermal comfort indices, and particulate pollution measurements.
More recently, the city:
The city stands out for its commitment to sustainability, innovation, and environmental excellence, through several major initiatives and recognitions.
Joined the EU mission of “100 climate-neutral cities,” with a commitment to carbon neutrality, sustainable mobility, green growth, and smart technologies.
Awarded a gold award for circular economy and a silver award for environmental excellence in a national competition.
Joined the EU’s “Smart Tourism Destinations” network, which promotes sustainable tourism through digital technologies.
Pilots the SMARTREC platform for recycling used cooking oil, a first in Greece.
A municipal program for 2025–2028 plans 48 projects (40 works and 8 studies) with a budget of over 11 million euros, with a strong focus on quality of life, basic networks, and energy transition. For a real estate investor, this type of approach means the municipality is not betting solely on a short-term tourism boom, but on a structural transformation of its urban model. In the long run, this tends to support land value and residential attractiveness.
Katerini in the Context of the Greek Real Estate Market
To properly gauge the opportunities in Katerini, they must be placed in the recent evolution of Greek real estate. After the long crisis of the 2010s, prices began to recover from 2018, with annual increases of over 7% as early as 2019. Despite the pandemic, the trend remained positive, then accelerated between 2020 and 2023, before gradually slowing in 2024–2025.
A few numerical benchmarks at the national level:
| National indicator (Greek residential) | Recent Value |
|---|---|
| Average price increase 2018 | +1.84% |
| Average price increase 2019 | +7.36% |
| Nominal increase 2020 despite pandemic | +4.76% |
| Average annual increase 2024 (urban) | +8.72% |
| Annual urban housing index increase (Q3 2025) | +7.69% |
| Average estimated increase last 12 months (Jan 2026) | ~7% |
| Forecast annual increase 2026 (range) | 3–6% |
| Median forecast annual increase over 2026 | ~5.5% |
Thessaloniki, 70 km from Katerini, was one of the most dynamic markets in 2025, with increases of around 10–11%, above Athens. This gap illustrates a phenomenon: second-tier cities and some tourist regions are catching up in terms of appreciation. Katerini, located in Thessaloniki’s orbit and at the heart of a booming Riviera, is logically well-positioned in this convergence cycle.
The Greek Golden Visa program has been reformed with raised investment thresholds (€400,000 in most regions, €800,000 in Athens, Thessaloniki, Mykonos, Santorini). The purchase of a single property of at least 120 m² is mandatory, and tourist rentals of eligible properties are virtually prohibited. These changes are diverting some investors from saturated markets toward more affordable ones.
Even though Katerini is not among the very top targets of these flows, it benefits indirectly:
The attractiveness of certain Greek regions for real estate investment can be explained by several factors: proximity to a major city like Thessaloniki, which captures part of foreign investment; a position on an attractive coast but with prices well below those of iconic islands; and the effect of new regulations, which encourage investors to look at properties under €400,000 to maintain tourist rental strategies.
This combination of “still moderate prices + tourist potential + improving infrastructure” exactly matches the profile of markets that experts describe as the most promising in the medium term in Greece.
Tax Framework and Costs: Calibrating Your Budget Well
Investing in Greece, and therefore in Katerini, requires understanding specific taxes and acquisition costs. For a foreign buyer, around 6–10% of additional costs must be factored into the calculation, not just the price.
Acquisition Costs
On a “standard” resale purchase, the main items are:
| Cost item (buyer) | Order of magnitude |
|---|---|
| Transfer tax + municipal surcharge | ~3.09% of value |
| Notary | 1–1.6% |
| Registration (cadastre / mortgages) | 0.6–1% |
| Lawyer (highly recommended) | 0.8–1% |
| Agency commission (if buyer side) | 2–3% + VAT |
| Miscellaneous (engineer, certificates, translations) | Lump sum ~€500–1,000 |
In total, an investor can realistically expect an additional cost of around 5–7% in the minimal scenario, and up to 10–12% when using all intermediaries and services. On a property worth €150,000, this represents an overall budget of approximately €160,000–€165,000.
In Greece, the 24% VAT rate applicable to new constructions is suspended until the end of 2026. This measure allows the purchase of a new property under the same transfer tax conditions (3.09%) as an older property. This tax advantage is applicable in Katerini.
Annual Taxation and Rental Income
Once you are a property owner, the main tax burden is ENFIA, the national property tax, calculated per square meter based on location, usage, age of the property, etc. For a standard apartment in Katerini, in an average-value area, the annual cost is generally between €150 and €500.
To this is added a municipal surcharge (TAP) of around 0.025–0.035% of the property’s “objective” value, local fees for lighting and cleaning, and, where applicable, taxes on rental income:
The highest marginal income tax rate in France applies to annual incomes exceeding €35,000.
However, deductions are possible, including a flat 5% deduction for maintenance, and a deduction of up to 60% of renovation or energy improvement expenses (capped at €16,000 over three years). For an investor renovating an older property in Katerini – which is often the case for 1980s–1990s housing – these provisions can significantly reduce the tax on rental income.
Upon resale, the real estate capital gains tax at a rate of 15% is suspended until the end of 2026, which still allows, in the short term, tax-free arbitrage on capital gains, subject to legislative changes.
Purchase Procedure: A Market Open to Foreigners, but Formal
The Greek legal framework does not discriminate between local and foreign buyers: a non-resident, whether European or not, can freely acquire property in Katerini, except in specific cases of sensitive border areas (which is not the case here). The procedure, however, remains formalistic, and the presence of an independent lawyer is strongly recommended.
The main steps are as follows:
Acquiring real estate in Greece requires following several essential steps: obtain a Greek tax number (AFM), essential for any transaction; possibly, issue a power of attorney to a local lawyer to handle procedures remotely; open a Greek bank account to centralize payments; have a lawyer verify the property’s legal status; have an engineer conduct a technical inspection; sign a preliminary agreement with a deposit of about 10%; pay the transfer tax; and finalize the sale by signing the deed before a notary, with registration of the transfer.
In practice, a foreign investor can manage the entire process remotely, relying on a lawyer and a notary, which is particularly interesting for buyers who want to position themselves on properties in Katerini or on the neighboring coast without staying there for long.
Segments and Locations: Where to Invest in Katerini and on the Olympic Riviera?
For an investor, the first strategic decision is to choose the target market segment: long-term residential in town, second home near the sea, seasonal rental on the waterfront, or a mix of the three.
Katerini City Center
With over 80,000 inhabitants, shops, schools, administrative offices, and an active local life, the center offers:
– some of the lowest entry prices in the region, especially in non-central neighborhoods;
– a continuous rental demand from local households, civil servants, students, and workers linked to Thessaloniki;
– an urban environment improving thanks to bioclimatic policies, greening, and public building modernization projects (town hall, schools, sports facilities).
Gross yield is moderate, but vacancy rates are relatively low and operating costs remain predictable. This investment segment suits an investor who prioritizes stability over maximum performance.
Paralia Katerini, Olympiaki Akti, and the Coast
The waterfront, on the other hand, is the preferred playground for seasonal rentals. The advantages are clear: sandy beaches, clear water, immediate proximity to Mount Olympus, tourist infrastructure, and resort atmosphere. Small units (studios, 1–2 bedrooms) are particularly sought after, as confirmed by the Airbnb market structure.
Demand is heavily concentrated between June and September, but a growing share of travelers (remote workers, Northern European retirees, mid-season tourists) is beginning to extend the period of occupancy. It is on this type of property that it is possible to aim for high gross yields, provided:
To succeed in seasonal rentals, one must accept intensive management or delegate to a local professional, invest in the quality of the accommodation (air conditioning, insulation, decor, services), and monitor regulatory changes regarding short-term rentals.
Nearby Coastal Villages
Platamonas, Leptokaria, as well as other villages along the Pieria coast, combine traditional charm and tourist appeal, sometimes with prices even lower than those in Paralia Katerini. Available data highlights that real estate prices there remain “reasonable and much lower than in many other Greek seaside resorts”.
For an investor who is willing to accept a bit more distance from the central city, these locations can constitute a very interesting entry point to the Olympic Riviera, with larger or better-located properties for a given budget.
Risks and Points of Vigilance
No market is without risks, and Katerini is no exception. Several factors must be monitored.
First, the rise in real estate prices in Greece since 2018 has already eaten into part of the easy “catch-up.” The national market is entering a phase of more moderate growth (3–6% per year expected in 2026), meaning capital gains can no longer be taken for granted.
Second, tourist pressure may, over time, lead to stricter regulations on short-term rentals, as has been the case in Athens or on certain islands. For now, the municipality of Katerini operates within a fairly flexible framework, but it would be unwise to base an entire strategy on an Airbnb model without a Plan B.
Despite adaptation projects, the region faces coastal pressure, erosion, rising temperatures, and a risk of degradation of coastal ecosystems. These challenges, at the heart of EU programs like LIFE-IP AdaptInGR, could affect the desirability of certain areas in the long term.
Finally, the economic conditions of local households – relatively low salaries, difficulty accessing credit (only 20% of real estate purchases in Greece are currently financed by loans) – limit the local market’s ability to absorb indefinite rent and price increases. For a long-term rental investor, this means remaining compatible with the purchasing power of Pieria households.
A Window of Opportunity for Patient Investors
Despite these reservations, all signs indicate that Katerini still has significant room for growth in the current cycle. The country as a whole should continue to see real estate prices rise, but at a more reasonable pace. Attractive coastal areas like the Olympic Riviera are expected to slightly outperform the average, driven by tourism, the search for coastal lifestyles, and the repositioning of international investors away from already saturated markets.
The city is investing in its infrastructure (water, transport, digital, energy, public spaces) and combines tourism, connectivity, sustainable urban policy, and affordable prices, making it a serious candidate for the next five to ten years.
For an investor willing to step off the beaten path of Athens, Mykonos, or Santorini, investing in real estate in Katerini and the neighboring Olympic Riviera offers a rare equation: buy low in a market that is already dynamic but far from saturation, benefit from a strong tourist season and an urban environment undergoing an upgrade, while diversifying a portfolio in a region that combines sea, mountain, history, and quality of life.
The success of a real estate project in Katerini rests on several essential pillars: rigorous property selection, in-depth analysis of micro-locations (city center, Paralia, Olympiaki Akti, coastal villages), choosing a clear rental strategy (long-term, seasonal, or mixed), and relying on competent local professionals. By structuring the project this way, Katerini has strong potential to become a safe bet and a pleasant surprise in the Greek real estate market in the years to come.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
