Thessaloniki: How Metro Has Boosted Commercial and Residential Property Prices

Significant increases in property prices, reaching up to 60% in some cases, have been recorded in areas near the metro stations in Thessaloniki. These findings come from a study by Cerved Property Services presented at the recent conference of the Hellenic Association of Valuers (H.A.V.). In the commercial real estate sector, the most notable increase has been observed in office spaces near metro stations, while retail space prices remain stable with no significant changes near metro stops. The Line 1 Metro, spanning 9.6 kilometers with 13 stations, attracts around 270,000 daily users. Office demand has surged over the past two years in the Municipality of Thessaloniki, particularly for properties within close proximity to metro stations, leading to rent value hikes between 40% and 58% from 2020-2024 in central areas like Vardari. Key streets such as Vasileos Herakliou, Ermou, Ionos Dragoumi, and Egnatia show the highest increases. Improved accessibility due to the metro has enhanced business interest in these locations, boosting property values. Conversely, the impact on retail spaces is more limited, with price increases concentrated within a 250-meter radius of stations. Despite initial attempts to raise prices by up to 50%, market response was muted, resulting in vacant stores near stations like Egnatia, Fleming, Analipsi, and 25th March. Exceptions include areas like Agia Sofia, where commercial activity was already robust before the metro’s operation. Major shopping arteries like Tsimiski and Mitropoleos, located over 500 meters from stations, remain unaffected. Regarding residential properties, the study shows continuous price growth in Thessaloniki since 2018. Between 2020-2024, overall home value increased by 50%, regardless of metro access. However, neighborhoods near stations like Papafis, Euclid, Fleming, Analipsi, and 25th March saw even sharper increases, especially for 1970s and 1980s constructions, reaching up to 60%. Notably, property prices in Kalamaria, soon to be served by the metro, have risen by 35% in the last two years, indicating further market strengthening upon project completion. These developments confirm that improved infrastructure significantly boosts property markets, increasing demand and values in directly affected areas.