Published on and written by Cyril Jarnias
Nestled in the heart of Thessaly, a regional capital and agricultural, academic, and logistics hub, Larissa concentrates much of what cautious investors seek: still very affordable prices, structural rental demand, and an urban environment undergoing major modernization. Far from the speculative surges of Athens or the islands, the city is steadily establishing itself as one of the most undervalued markets in Greece.
This article provides a comprehensive analysis of the Larissa real estate market, covering prices, rental yields, strategic neighborhoods, applicable taxes, financing options, the legal framework, and the main risks to anticipate for a successful investment.
A dynamic medium-sized city, driven by the university and agri-economy
Larissa is the capital of the Thessaly region and one of the fastest-growing cities in the Greek periphery. Its population is stable, commercial activity is intense, and tourism—still modest—is beginning to take shape around the city’s history, its ancient theater, museums, and surrounding natural landscapes.
Three drivers ensure a steady flow of newcomers, and therefore potential tenants:
The Thessaly region in Greece relies on several key infrastructures: the schools of the University of Thessaly, which attract a significant annual influx of students and academic staff; the presence of several military units; and a modern healthcare network, which draws doctors, nurses, and patients from across central Greece.
These profiles are joined by young professionals and middle-class families, fueling a core rental demand that is largely independent of tourist seasons. Unlike many seaside resorts, the Larissa market is primarily based on the local economy and permanent residential needs.
Price levels: a still very affordable market
Compared to Athens, Thessaloniki, or the most popular islands, real estate in Larissa remains significantly more accessible. Listing figures paint a clear picture of this differential.
Average prices in the municipality and prefecture
In September 2025, average asking prices for homes for sale in the municipality of Larissa reached €1,418/m², up 4.11% year-on-year. At the broader prefecture level of Larissa, the average was only €1,217/m², a modest increase of 1.16%.
This snapshot can be summarized in the following table:
| Area | Average sale price (€/m²) | Annual change |
|---|---|---|
| Municipality of Larissa | 1,418 | +4.11% |
| Prefecture of Larissa | 1,217 | +1.16% |
Over the previous two years, the municipality experienced a low of €1,331/m² (March 2024) and a peak precisely in September 2025 (€1,418/m²), confirming a moderate but steady upward trend.
The average rent per square meter in Paris in September 2025, marking a modest annual increase of 0.96%.
Price differences by neighborhood
Within the city, differences are already significant. In September 2025:
| Neighborhood (Municipality of Larissa) | Average sale price (€/m²) | Average rent (€/m²/month) |
|---|---|---|
| Center (Kentro) | 1,426 | 7.36 |
| Terpsithea | 980 | n/a |
The center sits in the upper average of the city, while Terpsithea shows values well below €1,000/m², illustrating the catch-up potential of certain sectors.
Across the entire prefecture, other municipalities show even greater contrast:
| Municipality (Prefecture of Larissa) | Sale (€/m²) | Rent (€/m²/month) |
|---|---|---|
| Larissa | 1,418 | 7.36 |
| Giannouli | 797 | 4.56 |
| Elassona | 596 | 3.85 |
| Nikaia | 958 | 3.35 |
| Melivoia (highest) | 1,451 | n/a |
| Olimpos (lowest) | 70 | n/a |
| Tirnavos (lowest rent) | n/a | 1.81 |
For an investor, these figures show just how much Larissa, the region’s main city, remains in a very reasonable price range, especially when compared to South Athens where listings exceed €4,000/m², or even Thessaloniki, whose municipality is around €2,600/m².
Price ranges by property type and condition
Beyond the averages, the local market is structured around broad ranges, directly linked to the property’s condition:
Price range for acquiring a property, from a home needing renovation to a high-quality already renovated property.
Approximately €1,000 to €2,200/m² for most homes, depending on location and level of finish.
€700 to €1,200/m² renovation cost to bring an old property up to standard (insulation, heating, electrical, aesthetics).
€2,000 to €3,500/m² for quality already renovated properties, sometimes more if the view or location (pedestrian center, historic area) is exceptional.
The pedestrian and historic zones of the center, as well as the busiest shopping streets, can show prices 15% to 30% higher than the city average, which still remains far from values in the prime neighborhoods of Athens.
Rental market: structural demand and competitive yields
The great advantage of Larissa for the investor is not so much short-term speculation as visibility on rental demand.
Who rents in Larissa?
Several profiles overlap:
– Students and recent graduates, attracted by the University of Thessaly campuses;
– Medical and paramedical staff, linked to healthcare facilities;
– Middle-class families working in services, commerce, or agri-industry;
– Military personnel and civil servants;
– To a lesser extent, passing visitors for conferences, cultural events, and agritourism in the region.
These groups are concentrated mainly in the center (Kentro), Filippoupoli, and Neapoli, but quieter neighborhoods like Ampelokipoi are gaining popularity among families.
The diversity of profiles, primarily local, acts as a powerful buffer against the vagaries of international tourism and helps maintain low vacancy rates, especially for well-located small units.
Rent levels and concrete examples
Market data indicates average rents around €7 to €8/m² in the city, with a range of €8 to €9/m² for the most sought-after products (studios and one-bedrooms near transport, furnished and renovated properties).
Some operational benchmarks:
| Property type | Location | Average monthly rent | Observed range |
|---|---|---|---|
| 1-bedroom apartment | Center | ≈ €340 | €320 – €350 |
| 1-bedroom apartment | Outside center | ≈ €256 | €240 – €300 |
| 3-bedroom apartment | Center | ≈ €534 | €470 – €700 |
| 3-bedroom apartment | Outside center | ≈ €445 | €430 – €500 |
These amounts place Larissa in a category of cities where rents remain compatible with local incomes, while allowing the investor to aim for attractive yields, particularly on functional small units.
Yields: what can be targeted in Larissa
Nationally, gross residential yields average between 4.5% and 5.6%, with a trend toward compression in the most sought-after neighborhoods of Athens. Well-positioned smaller regional towns often show higher performance due to lower purchase prices.
is precisely cited as a stable and still undervalued market
Larissa
– projected gross yields around 5% to 7% for 2026 on residential;
– targeted yields of 4.5% to 6.5% for furnished, renovated, and well-equipped studios or one-bedrooms (air conditioning, double glazing, good bus connections);
– specific segments in Thessaly and Epirus where yields can reach up to 8–11% gross per year, on very affordable properties intended for local or student clientele.
For an investor willing to take on a renovation project, the mechanics are particularly interesting: buy an old apartment at a moderate price, invest €700 to €1,200/m² in work, then rent it out furnished at rents close to €8–9/m². The gap between cost and rental value allows achieving returns above the Greek average, especially if management is delegated to a professional to maintain a high occupancy rate.
Where to invest in Larissa: neighborhoods and property types to target
The city offers a range of micro-markets that each cater to different strategies.
The center and historic heart
The center (Kentro, Kentriki Plateia, pedestrian streets around Kouma, Plateia Tachydromeiou, Venizelou) concentrates:
– shops and offices;
– cultural facilities (theaters, museums);
– some university institutions;
– the main housing sought by students, young professionals, and urban tourists.
Well-renovated apartments in these streets, with good aesthetics and optimized functionality, are suitable for both long-term rentals and short-term rentals via specialized platforms, as long as local regulations permit.
Prices in these neighborhoods are above the city average but remain below Athens standards. For an investor, they often represent the first choice because they offer good resale liquidity and strong rental appeal.
Family residential neighborhoods
Sectors like Neapoli and Ampelokipoi offer:
– a quiet, green setting with parks and playgrounds;
– more spacious apartments, suitable for families;
– good transport links, within reasonable distance from the center;
– softer prices per square meter than in the hypercenter.
These neighborhoods are suitable for a long-term rental strategy targeting stable households, where the tenant turnover rate is generally lower. Gross profitability is often slightly lower than in the center, but compensated by lower vacancy and less frequent refurbishment costs.
Student-popular areas
The immediate surroundings of university campuses and the transport axes leading to them host a high concentration of small units of 25 to 50 m². Renters are looking for:
– furnished accommodation;
– well-connected by bus;
– equipped with modern comforts (air conditioning, double-glazed windows, reliable internet).
This segment is at the heart of Larissa’s yield promise: low entry prices, structural demand, and rents per square meter above average for small units.
Opportunities on the periphery of the prefecture
At the prefecture level, municipalities like Giannouli, Nikaia, or Elassona show prices between €596 and €958/m² for rents ranging from €3 to €4.5/m². They are more suited to a pure yield strategy, possibly combined with agricultural, logistics, or industrial activities.
The municipality of Larissa nonetheless remains the reference point, especially for international investors who prefer the most liquid markets.
National context: a Greek market entering maturity
To understand Larissa’s appreciation potential, it is useful to place the city within the Greek real estate cycle.
Since 2018, after Greece exited its last bailout program, residential prices experienced a spectacular catch-up phase, driven by:
– a gradual return of mortgage lending;
– an influx of foreign capital, notably via the Golden Visa program;
– the tourism recovery and European recovery funds.
Annual price increases exceeded 14% in some areas in 2023.
The country is now entering a more mature phase: price growth continues but at a more contained pace, interest rates are normalizing around 3.5–4.5% for home loans, and authorities are tightening Golden Visa conditions in the most saturated areas (higher investment thresholds, regulation of short-term rentals).
In this context, regional cities that are well-connected yet still affordable — like Larissa — become prime targets for investors seeking:
– a lower entry ticket than Athens or the islands;
– rental demand tied to the local economy rather than tourism;
– catch-up potential in the medium term.
Financing an investment in Larissa: possibilities and limits
Unlike other markets, the majority of acquisitions in Greece are still made in cash. Only about 20% of residential purchases are financed by credit. This does not prevent foreign investors from accessing financing, but the framework is stricter.
Access to credit for non-residents
Greek banks — Eurobank, Alpha Bank, Piraeus Bank, National Bank of Greece — offer mortgages to non-residents, with several specifics:
The loan-to-value (LTV) ratio generally granted to non-residents for a mortgage in Greece, requiring a substantial personal down payment.
Before any application, the investor must obtain a Greek tax number (AFM), open a local bank account, and provide the required documents (passport, proof of income, bank statements, proof of address). The process can be handled by a lawyer via power of attorney, which is common for buyers living abroad.
Why credit can still be interesting
Even if rates are no longer those of the “zero rate” era, they remain competitive compared to many European countries, especially since:
The Bank of Greece observes a nearly 46% increase in the volume of new mortgage loans over the first ten months of 2025.
In a city like Larissa, combining reasonable financing (controlled LTV) with a gross yield of 5–7% allows generating positive or at least balanced cash flow, while benefiting from the leverage effect on long-term appreciation.
Taxation of real estate investment in Larissa
The Greek tax environment is relatively simple for a foreign investor to understand, although some specifics must be well anticipated.
Acquisition costs
Buying a property in Larissa involves fees and taxes typically representing 8% to 10% of the price. They include:
– Property transfer tax: 3% of the taxable value, plus a municipal surcharge of 3% on this tax, resulting in an effective rate of 3.09%;
– Notary fees: approximately 0.8% to 1.2%;
– Land registry or cadastre registration fees: 0.5% to 0.8%;
– Lawyer fees: often 1% to 1.5%;
– Agency commission: commonly 2% for each party, negotiable.
For new constructions sold before first occupancy, a VAT of 24% normally applies instead of the transfer tax. However, Greece has suspended this VAT on most new homes until the end of 2026, bringing the acquisition under the general regime at 3.09% transfer tax. This is a significant advantage for investments in recent programs.
Recurring holding taxes
Every property owner in Greece, resident or not, is subject to ENFIA, the annual real estate property tax. Its amount depends on the zone, area, use, year of construction, and other coefficients. As an indication:
The main component of ENFIA for buildings can reach up to €16.20 per square meter.
Owners must declare their properties via Form E9, after which the administration calculates the ENFIA to be paid, either in one lump sum or in several installments.
In cases of significant wealth, an additional tax may apply above a certain total value threshold, especially for companies.
Taxation of rental income
Rental income from a property in Larissa is taxed in Greece, even if the owner is non-resident. For individuals, it is taxed under the progressive scale for real estate income, with, according to sources, the following brackets:
– 15% up to €12,000 of annual rents;
– 25% or 35% on the next bracket (up to €24,000 or €35,000);
– 45% beyond.
A standard deduction of 5% is applied in lieu of actual expenses. Declarations are made via forms E1 and E2.
For companies, rents are included in the profit and taxed at the corporate income tax rate of 22%, with the possibility of deducting a range of expenses (loan interest, depreciation, management fees) subject to conditions.
Capital gains taxation
In principle, real estate capital gains realized by individuals are subject to a tax of 15% on the gain (difference between sale price and purchase price). In practice, the application of this tax has been suspended for several years and the suspension has been extended until the end of 2026.
Concretely, this means that an individual selling a property in Larissa before this deadline does not pay Greek capital gains tax, which strengthens the appeal of a buy-renovate-sell scenario.
For legal entities, gains on disposal remain included in profit subject to corporate income tax.
Legal framework and process of a purchase in Larissa
Greece does not restrict property ownership to foreigners: nationals of all countries, EU and non-EU alike, can buy a property in Larissa, whether for personal use, rental, or investment.
Greek property law is, however, formalistic and nearly all transactions go through notarial deeds. A procedural error can render a transfer invalid, hence the importance of being accompanied by an independent lawyer.
Key steps for a foreign investor
The classic process is as follows:
1. Clarify the investment objective Personal use, long-term rental, possible Golden Visa application, medium-term resale project: this choice influences the type of property, the ownership structure (in personal name or via company), and the applicable tax regime.
2. Obtain a Greek tax number (AFM) The AFM is essential for any important financial act (purchase, account opening, tax payment). It is obtained from the local tax office, either directly or through a representative with a power of attorney.
It is highly recommended, and sometimes required, to open a bank account in Greece to manage payments, taxes, and any mortgage. The bank will generally request your passport, Greek tax number (AFM), proof of income, and proof of address. The process can sometimes be done via video conference.
4. Sign a power of attorney to a local lawyer (optional but recommended) This power of attorney, signed before a notary in Greece or apostilled abroad, allows the lawyer to represent the buyer for: obtaining the AFM, opening the account, signing the deed of sale, registering the property with the land registry, filing tax returns, etc. The buyer does not need to be physically present.
5. Legal and technical due diligence Before any firm signing, the lawyer checks with the land registry (Ktimatologio) that the seller is indeed the owner, that the property is not encumbered by debts, mortgages, or disputes, and that the intended uses are compatible with zoning. An engineer checks the building’s conformity with building permits and identifies any illegal extensions. An energy performance certificate is also required.
A reservation agreement or preliminary contract may be signed, accompanied by a deposit of 5% to 10% of the price. If not notarized, its legal scope is limited, but it formalizes the sale conditions and makes the property unavailable during due diligence. It is recommended not to finalize this agreement too early, before all necessary checks are completed.
7. Signing the notarial deed and registration The notary drafts the final deed, reads it at the meeting, and supervises payment of the price (often via transfer from the buyer’s Greek account). Once signed, the deed is registered with the land registry, conferring full ownership. The property is then declared in the tax system (E9), to trigger ENFIA.
The entire procedure, well-prepared, can take place over a few weeks, with most steps doable remotely via mandates.
Golden Visa: Larissa as a lower-cost entry point
For non-Europeans, real estate investment can also be a lever for obtaining a residence permit through the Greek Golden Visa program. This has been tightened in high-pressure areas (Athens, Thessaloniki, major tourist islands), with thresholds now set at €800,000 for the most sought-after neighborhoods and €400,000 for the rest of mainland Greece.
At the same time, Greece has kept a lower threshold (€250,000) for:
– properties converted from commercial to residential;
– properties to be restored that have historical or cultural interest.
For a Golden Visa candidate, the city of Larissa offers several advantages, notably the fact that it is not located in an ultra-tight real estate market, which can facilitate settlement.
– a significantly lower cost per square meter, allowing the purchase of a sizable property with a budget of €250,000 to €400,000;
– stable local rental demand to make the investment profitable;
– an urban environment undergoing modernization, with many infrastructure projects (sustainable mobility, parks, road and rail axes, industrial and energy hub).
It should be kept in mind, however, that Golden Visa rules now regulate rental use: certain investments (€400k and €800k) cannot be used for short-term rentals like Airbnb, but only for personal use or long-term rental.
Infrastructure and major projects: a lever for future value
Larissa does not rely solely on its status as an agricultural and university capital. The city and its region benefit from a cluster of public and private investments supporting its transformation:
Strategic investment plan to modernize transport, energy, and industry, enhancing connectivity and the green transition.
Expansion of pedestrian zones, creation of a 45 km cycling network, parking regulation, and modernization of public transport.
Redesign of major intersections and construction of roundabouts, funded by the regional operational program “Thessaly 2021–2027”.
Deployment of 204 charging points for electric vehicles, including 10 adapted for people with disabilities.
Connected to 5G infrastructure and renewable energy, supported by national and European funds.
Construction of a nearly 800 MW combined-cycle gas power plant, with a data center project, connected to the high-voltage grid.
Rehabilitation of the Larissa–Volos and Domokos–Larissa lines, and strategic connection to the PATHE highway axis.
In several Greek cities, spectacular price increases have already been observed after the commissioning of major transport infrastructure (metro extension, port modernization). Without mechanically replicating these figures in Larissa, these investments create a favorable context for gradual appreciation of the housing stock.
Property management: a key link, especially for non-resident investors
For a foreign owner investing in Larissa, the question of day-to-day management is central: finding tenants, collecting rents, managing expenses, maintenance, local tax obligations.
The Greek market has many management companies and specialized agencies, capable of offering:
Discover our full range of services designed to simplify the management of your property and secure your investments.
Rigorous tenant selection, lease drafting, and contractual follow-up for a peaceful rental relationship.
Rent collection, detailed financial reporting, and proactive monitoring of late payments for controlled cash flow.
Organization of maintenance and repair work through a network of qualified and responsive partner tradespeople.
Handling payment of bills (water, electricity, charges) and property tax (ENFIA) on behalf of the owner.
Tax optimization advice, including for short-term rentals, while ensuring compliance with current regulations.
Management fees typically range around 8% to 12% of collected rents, often plus the equivalent of half to one month’s rent for placing a new tenant. In a city like Larissa, where absolute rents remain moderate, this cost is relatively light compared to the peace of mind it provides, especially when living abroad.
Risks and limits: what the investor must accept
Like any real estate investment, a project in Larissa carries risks that it would be illusory to ignore.
Market risks
Even if the national trend is upward and Larissa appears undervalued, an economic downturn, a sharp rise in rates, or an external shock (health, geopolitical) can:
– slow purchase demand;
– slow rent growth;
– temporarily lower sale prices.
Past crises have shown that no market is completely protected. The investor must therefore adopt a long holding horizon and avoid relying solely on a quick resale to justify profitability.
Liquidity risks
Larissa is not Athens: market depth is lower, especially for very specific properties (large atypical spaces, commercial assets off major axes). If a quick resale is needed, accepting a discount may be necessary.
To mitigate risks, it is essential to put in place preventive measures adapted to the specific situation. This generally involves identifying potential sources of danger, assessing their likelihood and impact, then defining and applying corrective actions or protective barriers. Regular monitoring and reassessment of procedures help maintain the effectiveness of these measures over time.
– buying versatile small and medium-sized units;
– selecting central or very well-connected locations;
– quality renovation, making the property more attractive than direct competition.
Regulatory risks
Greece, like other European countries, is gradually tightening regulations:
– regulation of short-term rentals in certain cities;
– strengthening energy performance requirements, with a direct impact on the value of poorly rated homes;
– frequent adjustments to Golden Visa rules and the tax treatment of real estate income.
A property with poor energy performance risks losing value or requiring costly work. Investors now favor renovated apartments in class A or A+, which, despite a 12% to 15% purchase premium over a comparable older property, offer better resale and rental prospects.
Operational risks
Actual performance depends largely on the quality of management:
– a poor tenant choice can lead to non-payment, damage, or disputes;
– an underestimated renovation budget can turn a profitable project into a financial sinkhole;
– a poor understanding of tax rules can lead to audits.
Mitigating these risks requires a lawyer/manager – experienced local agent duo, capable of overseeing each step.
Why Larissa deserves a place in a diversified real estate portfolio
In summary, investing in real estate in Larissa means:
The Kozani real estate market offers an affordable entry price (€1,000–€1,500/m²), structural rental demand thanks to the university and public services, and solid gross yields (5–7%). The city benefits from significant infrastructure investments and a stable tax framework for foreigners, with a capital gains exemption until end of 2026.
This is not a market for a speculative “quick profit”, but a favorable ground for patient strategies: buying properties to renovate and bring up to modern energy standards, building small portfolios of studios and two-bedroom units near university and medical facilities, or acquiring mixed-use premises on major commercial axes.
Provided one accepts the constraints inherent to the Greek market — legal formalism, specific taxation, sometimes cumbersome procedures — and surrounds oneself with competent local professionals, Larissa today offers a risk/return profile that few comparable European cities can still offer.
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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.
