The Mykonos real estate market in 2025 is experiencing a phase of price consolidation at the top end, following several years of record-breaking growth in luxury asset values. Long considered Greece’s most prestigious island destination, Mykonos continues to command premium prices, but investment strategies are shifting as rental regulations tighten and demand becomes increasingly segmented between lifestyle buyers and income-driven investors.

As a high-barrier, low-supply market with global name recognition, Mykonos remains a top-tier location for capital preservation, luxury branding, and seasonal rental profitability.

Property values on the island remain among the highest in Greece, with average sale prices exceeding €6,500 per square meter in key areas such as Psarou and Agios Ioannis. In 2024, villa sales across Mykonos posted an average transaction value of over €1.8 million, with foreign investors accounting for more than 60% of all deals.

However, 2025 shows signs of plateauing growth at the ultra-high end, prompting increased investor focus on yield, resale timelines, and regulatory clarity for short-term rentals.

The market continues to benefit from constrained land supply, limited building rights under strict zoning laws, and the island’s strong performance in the global luxury tourism sector. At the same time, a growing divergence has emerged between high-performing branded villas and older legacy stock requiring renovation or licensing upgrades.

Overview of The Mykonos Real Estate Market

As of Q1 2025, the Mykonos real estate market remains one of the most exclusive and expensive real estate destinations in Greece. While the rate of price appreciation has slowed compared to the highs of 2022–2023, demand continues to exceed supply in prime locations—sustaining elevated values and ensuring the island’s positioning as a defensive, prestige-driven asset class.

The average listing price across Mykonos stands at approximately €6,700 per square meter, with top-tier coastal villas in Psarou, Agios Lazaros, and Ornos surpassing €10,000/sqm.

Sales data from 2024 indicates a year-over-year price increase of 4.8%, slower than previous years but still ahead of national growth rates.

Entry-level prices for luxury villas begin around €1.5 million, while branded or sea-access properties often command values exceeding €4 million.

Transaction activity remains driven by international buyers, who represented over 65% of all purchases back in 2024. These include clients from Western Europe, the Middle East, and the United States. Many are second-home buyers or lifestyle investors, while others seek high-yield seasonal rentals under short-let platforms.

Despite reduced transaction speed compared to earlier cycles, liquidity remains healthy for well-positioned assets in legal compliance with rental regulations.

Supply remains highly constrained. Mykonos’ restrictive zoning and strict building codes significantly limit new development, especially in protected coastal zones. Renovation projects and licensed property conversions dominate current activity, as new construction permits are increasingly rare and often met with lengthy approval timelines.

• Average prices at €6,700/sqm, with 4.8% YoY growth.
• Entry prices for villas start at €1.5M, with prime inventory exceeding €4M.
• Foreign buyers drive 65%+ of sales, targeting lifestyle and yield assets.
• Development is tightly regulated, limiting new supply and protecting price levels.
• Liquidity strongest in legal, sea-view, rental-ready assets.

In summary, the Mykonos housing market continues to offer scarcity-driven pricing resilience and global investor interest. While appreciation has normalized, asset values remain supported by limited inventory, rental demand, and enduring brand appeal—making the island a long-term safe haven for capital in the Mediterranean luxury segment.

Neighborhood Analysis

Mykonos comprises a range of distinct micro-markets, each offering different combinations of prestige, rental potential, and capital preservation. While overall inventory remains limited island-wide, buyer profiles and price trajectories vary significantly depending on neighborhood, accessibility, and licensing status for short-term rentals.

Psarou

Psarou is the most prestigious address on the island, anchored by its world-famous beach and direct proximity to Nammos. Ultra-luxury villas in Psarou consistently command the highest values in Mykonos.

The median home price exceeds €4.5 million, with per square meter pricing averaging €10,800. Most properties feature private pools, panoramic views, and direct rental licensing—making them prime targets for high-season luxury leasing and second-home ownership.

Inventory is extremely tight, and transactions typically occur off-market or through private networks.

Agios Lazaros

Agios Lazaros is favored for its southwest orientation, sheltered coves, and sunset views. It offers an upscale residential feel while maintaining proximity to nightlife and airport access.

The median home price in Agios Lazaros is approximately €3.2 million, with pricing around €8,500/sqm. Villas here attract international buyers seeking semi-privacy, high-quality construction, and solid short-term rental yields.

Fully licensed villas with 5+ bedrooms in this area often generate over €200,000 in seasonal gross income.

Ornos

Ornos is one of Mykonos’ most versatile neighborhoods—popular with both families and short-let investors. With easy beach access, restaurants, and shops, it is among the most liquid parts of the market.

The median home price is €2.4 million, with an average of €7,000 per square meter. Two- to four-bedroom villas are common, and rental occupancy remains high due to broad appeal.

Chora (Mykonos Town)

Chora remains the cultural and nightlife heart of the island. While villa inventory is limited here, small restored homes and boutique units near Little Venice or Matogianni Street remain in high demand.

Prices average €9,000/sqm, and listing prices for small houses range from €1.2 million to €2 million, depending on build quality and accessibility.

This area is ideal for boutique investors targeting premium short-let income in the historic center.

Neighborhood Median Prices and Price per Square Meter

Mykonos Rental Market Overview

The Mykonos rental market in 2025 remains one of the most profitable in the Mediterranean for short-term, luxury-focused leasing. Driven by elite tourism, constrained supply, and seasonal urgency, landlords across the island enjoy exceptionally high gross yields—particularly on fully licensed villas with concierge-ready infrastructure.

Average rental rates vary significantly depending on property size, amenities, and proximity to premium beaches or nightlife zones. However, the peak-season leasing window (June–September) typically generates the majority of annual income, with weekly rates ranging from €7,000 to over €30,000, depending on the asset class.

Average Weekly Rent by Property Type (Peak Season)

• 1-Bedroom Villas / Suites: €3,000–€5,000/week
  
  
• 2–3 Bedroom Villas: €6,500–€12,000/week
  
  
• 4–5 Bedroom Villas: €15,000–€25,000/week
  
  
• Ultra-luxury Estates (6+ Bedrooms): €30,000+/week

Most properties operate under minimum stay terms of 5 to 7 nights during high season, and many secure bookings up to 12 months in advance via luxury travel agencies or private client networks.

Rent by Neighborhood

• Psarou: Villas lease for €25,000–€45,000/week, often to VIP clientele.
  
  
• Agios Lazaros: Weekly rents average €18,000–€30,000 for 4–6 bedroom estates.
  
  
• Ornos: Two- to four-bedroom villas command €8,000–€15,000/week, depending on walkability and views.
  
  
• Chora (Town): Boutique apartments or houses rent for €5,000–€10,000/week, popular among couples and nightlife tourists.
  
  
• Elia: Family villas lease at €10,000–€18,000/week, especially if offering sea views and pool access.
  
  

Occupancy and Market Trends

Despite high prices, occupancy during the peak season regularly exceeds 90% for top-performing, fully furnished properties. Mid-tier assets with outdated interiors or limited amenities face pressure from newer competition and shifting guest expectations. Owners able to provide hotel-style services, such as chefs, housekeeping, and transfers, are commanding rental premiums.

Off-season leasing (October–May) is limited, with occupancy rates often falling below 30%. Properties targeting digital nomads or long-stay winter tenants are rare, but growing in select areas like Chora or Ornos.

Short-term rental licenses are strictly regulated, and investors must ensure legal compliance to avoid operating restrictions. Licensing is typically more accessible for stand-alone villas than for subdivided or multifamily structures.

Investor Outlook

Mykonos continues to offer exceptional rental yield opportunities for investors with the capital to acquire and operate top-tier villas. Gross annual yields range between 6% and 10%, depending on occupancy efficiency, operating costs, and pricing strategy. Owners who professionally manage properties or engage specialized operators often outperform passive landlords.

In summary, the Mykonos rental market remains high-performing but operationally intensive. For investors with the resources and expertise to deliver luxury guest experiences, the island delivers some of the highest seasonal returns in Europe—backed by brand value, international demand, and extreme scarcity of supply.

Factors Influencing The Mykonos Housing Market

The Mykonos housing market in 2025 is shaped by a unique blend of global luxury demand, restrictive zoning, and Greece’s evolving regulatory landscape. While overall momentum remains positive, investor strategy increasingly depends on understanding the structural forces that sustain property values and limit new competition.

1. Limited Buildable Land and Zoning Restrictions: Strict planning regulations across Mykonos dramatically limit new construction. Protected coastline zones, height restrictions, and permit caps have created a supply-constrained environment where demand far exceeds inventory. These rules safeguard natural aesthetics but also drive price inflation in already-developed areas.
   
   
2. High Global Demand for Branded Luxury: Mykonos continues to attract ultra-high-net-worth individuals seeking Mediterranean real estate with brand recognition. As of 2025, buyers from the UAE, Switzerland, the U.S., and Israel account for a growing share of purchases. Branded villa developments, when available, often sell at a 20%+ premium per square meter, validating the island’s international appeal.
   
   
3. Regulatory Pressure on Short-Term Rentals: Greece’s efforts to regulate short-term rentals have begun affecting the Mykonos market. Villas operating illegally face increased scrutiny, and properties without proper EOT (Greek Tourism License) may be removed from online platforms. This is pushing buyers to prioritize fully licensed, legally compliant listings—even at a premium.
   
   
4. Operational Complexity and Management Costs: High rental income potential comes with operational burdens. Villas require professional staffing, legal oversight, and marketing partnerships to consistently achieve yields above 8% annually. For absentee owners, reliance on property managers introduces cost and risk variables that can reduce net return.
   
   
5. Seasonality and Economic Sensitivity: Mykonos operates on an extremely concentrated seasonal model. Roughly 85% of annual rental income is generated between June and September, meaning performance is sensitive to macroeconomic shifts, travel restrictions, or local market shocks. Properties not booked in peak months can underperform on an annual basis.
   
   
6. Rising Renovation and Holding Costs: Due to high demand and limited skilled labor, construction and renovation costs in Mykonos have risen by more than 20% since 2021. Maintenance, legal compliance, and luxury furnishing requirements all contribute to elevated holding expenses. Investors must factor in higher operating margins when evaluating total ROI.
   
   

Mykonos Housing Market Forecast for 2026

The Mykonos housing market is expected to remain stable and price-resilient in 2026, with moderate appreciation concentrated in fully licensed, luxury-grade properties. While the explosive post-pandemic price gains have tapered, long-term fundamentals continue to support Mykonos as one of Europe’s most durable luxury real estate markets.

Appreciation is expected to be steady rather than aggressive, driven by supply scarcity, brand value, and consistent global demand.

Residential property prices in Mykonos are projected to increase by 3.5% to 5.5% in 2026, depending on location and build quality. With the current island-wide average near €6,700 per square meter, values are expected to move toward the €6,950 to €7,100/sqm range in most high-performing districts. Premium areas like Psarou and Agios Lazaros may see slightly higher gains due to their continued liquidity and exclusivity.

New construction will remain limited due to zoning restrictions, delayed permitting, and land scarcity. Most value growth will occur in renovated or rebranded inventory, particularly villas with full EOT licensing, sea views, and high-end amenities that meet the operational requirements of seasonal short-term rentals.

Inventory turnover is expected to stay slow, with average time-on-market exceeding 6 months for mid-tier product, but moving faster in the €1.5M–€3M segment with rental-ready specifications and proximity to beaches.

On the rental side, lease rates are forecast to increase by 3% to 6%, primarily among 4+ bedroom villas with pools, modern furnishings, and concierge capability. Weekly peak-season prices may rise to €32,000 to €35,000 for flagship listings, while smaller villas may stabilize near 2025 levels due to growing market saturation in lower tiers.

Operational costs—including maintenance, staffing, and tax compliance—are likely to climb further, especially as Greek authorities strengthen enforcement on short-let legality and tax declarations.

Demand from international buyers is expected to remain solid, particularly from cash-heavy investors seeking Eurozone stability and lifestyle-driven assets. Currency movement and Golden Visa policy shifts will influence secondary market momentum, especially in the €500K–€1.2M price band.

Is It Worth Buying a Property in Mykonos?

Buying property in Mykonos in 2025–2026 can be a highly strategic move—but it depends on investor goals, operational readiness, and tolerance for a luxury-market risk profile. The island remains a unique asset class within Greece’s real estate ecosystem, offering exclusivity, brand equity, and exceptional rental potential. However, barriers to entry and management complexity make it less suited to passive or short-hold investors.

On the positive side, Mykonos offers some of the highest seasonal gross rental yields in Europe, with top-performing villas generating €200,000+ in annual income during a concentrated high season. Fully licensed, sea-view villas in Psarou, Ornos, or Agios Lazaros continue to attract high-net-worth renters and command top-tier pricing with relatively low vacancy.

Property values are also supported by strict development controls and a finite land base. This scarcity underpins long-term capital preservation, even in periods of global volatility. For investors with a medium-to-long horizon and a focus on Eurozone luxury markets, Mykonos remains one of the most secure coastal options in the Mediterranean.

However, challenges are notable. Renovation and operational costs are high, short-term rental licensing is tightly regulated, and management requires a local presence or a reliable third-party partner. Liquidity can be limited, particularly for non-compliant or poorly located villas. Additionally, reliance on the summer peak season introduces revenue concentration risk.

Buyers focused purely on appreciation may find stronger growth rates in emerging Greek mainland markets or second-tier islands. Mykonos should be viewed less as a speculative vehicle and more as a cash-flowing lifestyle asset with branding upside.

In summary, buying a property in Mykonos makes sense for investors seeking long-term, high-yield assets in a globally recognized luxury destination. However, success hinges on acquiring the right asset—fully licensed, well-located, and professionally operated—in a market that rewards precision more than volume.

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