The Santorini real estate market in 2025 continues to stand apart as one of the most sought-after island markets in the Mediterranean. Known for its iconic caldera views, strict building regulations, and high-end tourism appeal, the island has become a magnet for global investors seeking a blend of lifestyle, exclusivity, and yield.
As a tightly regulated, low-inventory market with global brand value, Santorini offers strong capital preservation and seasonal income potential, but only for well-positioned assets.
Average property prices remain among the highest in the Aegean, driven by both domestic and foreign interest in cliffside homes and luxury vacation villas.
Entry-level pricing for caldera-facing properties often begins at €700,000, with high-end estates in Oia and Imerovigli surpassing €1.5 million. International buyers—particularly from Western Europe, the U.S., and the UAE—remain active in the €500K–€1.2M band, especially when short-term rental licensing is in place.
From an investor perspective, the Santorini housing market combines high per-square-meter values with short-let profitability and brand equity. However, operational costs, regulatory enforcement, and seasonality require a careful acquisition and management strategy.
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Overview of The Santorini Real Estate Market
The Santorini real estate market in 2025 remains a high-value, low-volume segment defined by constrained supply and consistent international demand. While price growth has moderated from its peak, asset values remain firm—particularly in fully licensed, tourist-ready properties located in premium cliffside zones.
The average price per square meter island-wide is approximately €5,000, though caldera-facing properties in Oia and Imerovigli often exceed €7,000–€9,000/sqm.
Across the island, the median listing price for detached homes is €650,000, with luxury cave houses and villas commanding far higher premiums.
Sales activity is driven primarily by foreign buyers. In 2024, more than 60% of property transactions involved non-Greek nationals, many of whom are targeting lifestyle use, Golden Visa eligibility, or high-season short-let returns. Most demand is concentrated in the €500K to €1.2M range, where returns remain attractive and regulatory risk manageable.
New development remains tightly limited due to strict zoning regulations and the island’s protected topography. As a result, resale and renovated stock dominate listings, particularly in Oia, Fira, and Imerovigli. This creates a market where upgraded, legally compliant properties in strategic locations regularly transact near asking price.
- Average pricing at €5,000/sqm, with caldera views commanding €7,000+.
- Median villa listing price is €650K, with €1.5M+ assets in prime locations.
- 60% of sales involve international buyers, concentrated in the €500K–€1.2M segment.
- Strict zoning limits new development, sustaining pricing power.
- Resale and renovation dominate, especially in heritage zones.
In summary, the Santorini housing market remains an exclusive, supply-restricted environment. Pricing is driven by view quality, rental licensing, and architectural uniqueness—making precision more important than scale for investment success.
Neighborhood Analysis
Santorini’s housing market is shaped by a distinct hierarchy of neighborhoods, each offering unique combinations of view, access, architecture, and rental income potential. While the island as a whole maintains high investor interest, pricing, licensing availability, and seasonal performance vary greatly by location. Strategic selection is key to aligning acquisition with investment goals.
Oia
Oia is Santorini’s crown jewel. Famed for its cliffside sunsets and postcard-perfect cave houses, it commands the highest real estate values on the island.
The average price per square meter in Oia exceeds €7,500, with restored properties and villas often listing between €1.5 million and €3 million. Most assets here are boutique, heritage buildings that require careful compliance with preservation rules. Fully licensed rentals in Oia consistently yield some of the highest weekly rates in the Greek islands.
Imerovigli
Often described as a quieter, more private version of Oia, Imerovigli offers unobstructed caldera views and strong mid-to-high-end rental demand. It is popular with honeymooners and luxury-seeking travelers.
The median listing price in Imerovigli is approximately €6,500 per square meter, with homes typically priced between €900,000 and €1.8 million. Properties with established licenses and upgraded interiors perform particularly well.
Fira
Fira, the island’s capital, serves as both a residential and commercial hub. It offers proximity to the port, nightlife, and business services.
Prices average around €5,500 per square meter, with restored homes and mixed-use properties commonly listed in the €500,000 to €1 million range. Fira is ideal for investors seeking operational flexibility—especially for year-round boutique accommodations.
Neighborhood Median Prices and Price per Square Meter
| Neighborhood | Median Listing Price |
|---|---|
| Oia | €2.1M |
| Imerovigli | €1.2M |
| Fira | €750K |
| Kamari | €400K |
| Pyrgos | €480K |
Santorini Rental Market Overview
The rental market in Santorini in 2025 continues to outperform much of Greece, driven by elite global tourism, brand recognition, and strict supply-side controls. As a result, short-term leasing remains the primary investment model across the island, with high nightly rates during peak season supporting some of the highest per-week revenues in the Mediterranean.
Seasonal concentration, regulatory oversight, and hospitality expectations make Santorini one of the most operationally intensive—but rewarding—rental markets in Europe.
Peak-season rental activity spans from May to early October, with occupancy rates averaging 80% to 90% in Oia, Imerovigli, and Fira. Properties in secondary areas like Kamari and Perissa see slightly lower rates but remain profitable due to lower acquisition costs and longer average stays.
Average Weekly Rent by Property Type (Peak Season)
- 1-Bedroom Apartments (Kamari, Pyrgos): €1,200–€1,800/week
- 2-Bedroom Villas (Fira, Imerovigli): €2,500–€4,500/week
- Luxury Villas or Cave Houses (Oia): €6,000–€10,000/week
- 4+ Bedroom Cliffside Estates (Oia/Imerovigli): €12,000+/week
Occupancy is strongest in high-visibility, professionally managed properties with panoramic views, modern amenities, and legal short-term rental licenses. Properties without licensing (EOT or AMA) are increasingly difficult to operate, and enforcement has tightened significantly since 2023.
Off-season performance remains low. From November to March, occupancy typically falls below 25%, with most owners opting to close, rebrand, or offer deeply discounted long-term stays. Only a small segment of boutique units near Fira or Chora town attract year-round digital nomad or long-stay traffic.
Gross rental yields across Santorini range from 5% to 9%, depending on:
- View orientation (caldera vs inland)
- Legal compliance (licensed vs unlicensed)
- Operational efficiency (self-managed vs outsourced)
- Unit size and service level
Oia and Imerovigli deliver the highest gross revenue per week, though Pyrgos and Kamari offer stronger net yields relative to purchase price and ongoing cost.
In summary, Santorini’s rental market delivers high seasonal profitability but demands precision—both in property selection and in operational execution. The best-performing assets are licensed, view-privileged, and backed by full-service guest experiences.
Factors Influencing The Santorini Housing Market
The Santorini Housing Market in 2025 is shaped by a blend of regulatory controls, macroeconomic inputs, tourism dynamics, and high barriers to new development. These factors create both opportunity and complexity for investors, particularly those targeting short-term rental income or long-hold luxury assets.
- Strict Zoning and Land Scarcity: Building restrictions on Santorini are among the tightest in Greece. Protected heritage zones, caldera-view limitations, and low development quotas mean very few new construction permits are issued each year. This has created an environment of perpetual supply scarcity, which supports long-term price stability—even during global downturns.
- Global Tourism Demand: Santorini remains one of the most photographed and visited islands in the world, attracting over 2 million visitors annually. This volume drives strong rental demand, particularly for cave houses, villas, and cliffside properties with panoramic views. Demand from affluent travelers ensures that licensed properties with high service levels maintain pricing power during peak months.
- Regulatory Pressures on Short-Term Rentals: Greek authorities have implemented tighter regulations on the short-term rental sector, including mandatory EOT or AMA licensing, taxation controls, and platform reporting. Non-compliant properties are at risk of deactivation or fines. Investors must factor licensing status into both acquisition cost and yield projections.
- High Entry Costs and Renovation Challenges: Acquiring property in Santorini typically involves a high upfront investment, particularly for units with caldera exposure or existing tourism infrastructure. Renovation costs are also elevated, driven by logistics, craftsmanship standards, and local permit requirements. Investors should prepare for significant capex if targeting value-add assets.
- Seasonality and Revenue Volatility: Rental income is highly seasonal. Nearly 85% of annual revenue is earned between May and October, creating a condensed window of profitability. Properties not positioned or licensed for peak-season bookings face revenue compression. Owners must plan for five to six months of off-season holding costs.
- Demand from Foreign Buyers and Golden Visa Implications: Foreign demand remains strong, particularly in the €500K–€1.2M range. Many buyers are attracted by lifestyle value, branding prestige, and Greece’s Golden Visa program, which allows residency for real estate investments starting at €500,000. However, potential policy revisions may influence this demand in 2026 and beyond.
Santorini Housing Market Forecast for 2026
Looking ahead to 2026, the Santorini housing market is expected to maintain its status as one of the most resilient and tightly held luxury property segments in Greece. While capital growth may continue at a modest pace, price stability, high seasonal rental income, and long-term demand from global buyers will continue to anchor its investment appeal.
Market performance will favor precision over speculation—rewarding licensed, well-located assets operated with hospitality discipline.
Property prices across Santorini are projected to rise by 3% to 5% in 2026. With current island-wide averages around €5,000 per square meter, values are expected to reach €5,150 to €5,250/sqm, with stronger growth in areas like Pyrgos and Kamari due to affordability and new interest from boutique investors. In prime cliffside zones like Oia and Imerovigli, appreciation is likely to be more modest—2% to 3.5%—as those markets are already priced at a premium.
The supply of new inventory will remain virtually unchanged. Building regulations, historical preservation laws, and land use limitations make significant new development unlikely. Renovated resale units, especially those with valid short-term rental licenses and quality upgrades, will remain the most in-demand segment.
Rental prices are forecast to increase by 4% to 6%, particularly for properties offering hotel-level service, concierge access, and verified views. For example, top-performing three- to five-bedroom villas in Oia could command €10,000–€14,000/week during peak months by mid-2026. Even mid-market assets in Kamari and Fira are expected to see rate increases due to rising tourism volume and strong repeat visitor behavior.
Regulatory oversight is expected to tighten. Greek authorities may implement updated taxation and reporting requirements for short-term rentals, particularly in high-demand zones like Santorini and Mykonos. Investors relying on rental income should anticipate higher administrative costs and ensure full licensing to avoid compliance risks.
Investor demand is likely to remain solid—particularly from buyers seeking lifestyle assets or Eurozone residency through the Golden Visa program. However, elevated prices and limited supply may shift some foreign capital to secondary islands or mainland coastal regions, especially if price ceilings in premium Santorini neighborhoods are reached.
Is It Worth Buying a Property in Santorini?
Buying property in Santorini in 2025–2026 can be a highly strategic decision for investors prioritizing asset scarcity, brand equity, and rental income potential. However, it is not universally suited for all buyer profiles. High entry costs, operational complexity, and strict regulatory requirements mean success in this market demands capital readiness, long-term vision, and professional execution.
On the upside, Santorini delivers some of the highest per-night short-term rental revenues in Greece. Caldera-facing villas in Oia and Imerovigli regularly earn €10,000+ per week during high season, and even mid-tier units in Kamari or Pyrgos can deliver yields between 5% and 7% with effective management. With land scarcity and licensing limits restricting supply, compliant properties in premium locations enjoy strong pricing power and consistent demand.
The market also benefits from strong international buyer interest and enduring tourism appeal. As of 2025, more than 60% of purchases are made by foreign nationals, often seeking either a lifestyle asset or Golden Visa residency through the Greek real estate program. This creates liquidity in the €500K–€1.2M range, especially for rental-ready assets.
However, investors should be prepared for challenges. Renovation costs are high, legal due diligence is complex (especially in historical or cliffside areas), and off-season income is minimal. Only licensed properties may operate legally on platforms such as Airbnb or Booking.com, and future tax reforms or tourism caps could impact ROI for over-leveraged assets.
Liquidity is also location-specific. Premium zones like Oia and Imerovigli see faster resale turnover, while more remote or unlicensed properties can linger on the market. Investors seeking short-term capital gains may find the pace too slow, while yield-focused buyers with operational discipline stand to gain.
In summary, buying a property in Santorini is worthwhile for long-term investors with a clear strategy, legal guidance, and a willingness to invest in guest experience. When executed correctly, the island delivers a rare blend of prestige, performance, and scarcity that few markets in Europe can match.
Other Market Forecasts & Overviews
Athens Real Estate Market Overview & Forecast
Thessaloniki Real Estate Market Overview & Forecast
Mykonos Real Estate Market Overview & Forecast
FAQ
Are Santorini property prices expected to rise in 2026?
Yes. Prices are projected to increase by 3% to 5%, driven by limited supply and sustained global demand.
Is Santorini a good place to invest in real estate?
Yes—especially for investors targeting luxury rentals, brand equity, and long-term value in a supply-constrained market.
Which areas in Santorini offer the best ROI?
Top areas include Oia, Imerovigli, Fira, Kamari, and Pyrgos, each offering different entry points and rental strategies.
What are the typical rental yields in Santorini?
Gross yields range from 5% to 9%, depending on location, licensing, and service level.
Is the Santorini market affected by seasonality?
Yes. 85% of rental income is earned between May and October. Off-season demand is low.
