Economic Overview
Thessaloniki’s economy is undergoing structural modernisation, supported by national recovery funding, EU financing, and robust private sector participation. While tourism and trade remain central, real estate, logistics, life sciences, and technology are driving diversification.
Growth in 2024 exceeded expectations, with Northern Greece slightly outperforming the national average. In 2025–2026, Thessaloniki is projected to maintain a stable growth rate of 2–2.5%, underpinned by flagship projects such as ThessINTEC, the Metro, and the FlyOver motorway development. These initiatives are accelerating private investment in transport, health, education, and real estate, supporting urban expansion and densification in both the western and eastern districts.
ThessINTEC
Labour Market Dynamics
Thessaloniki benefits from a skilled, multilingual workforce, bolstered by the presence of three major universities. Unemployment has steadily declined and currently stands below 10% in early 2025—the lowest since the 2008 financial crisis. The city is emerging as a talent magnet for innovation-intensive industries, with over 100 companies and research teams expressing interest in ThessINTEC.
More than 7,000 jobs are forecast to be created through ThessINTEC and associated projects over the next decade. Meanwhile, the expansion of the Port of Thessaloniki and the redevelopment of logistics hubs like the former Gonou Military Camp are expected to further stimulate employment in transport, distribution, and industrial services.
Consumer Spending and Inflation
Consumer sentiment in Thessaloniki has improved notably since late 2023. Inflation has moderated to around 2.4% as of Q1 2025, aided by easing energy costs and improved supply chain conditions. Private consumption is on the rise, especially in housing, leisure, and technology-related goods.
Retail sales are recovering across key districts, supported by infrastructure upgrades, metro accessibility, and renewed urban density. The integration of lifestyle and cultural spaces, such as the redevelopment of the Fix Brewery into a mixed-use commercial, residential and entertainment area, is fostering new consumer patterns.
Interest Rates and Monetary Policy
The European Central Bank’s tightening cycle appears to have peaked in late 2024. With inflation stabilising, rate cuts are expected in the second half of 2025. This will benefit investors seeking financing for real estate developments in Thessaloniki, where yield spreads remain attractive relative to Western European markets.
Greece’s investment-grade status and ongoing fiscal discipline further reduce country risk premiums, adding to the city’s appeal for cross-border capital.
Investment Market Overview
Investor appetite for Thessaloniki has intensified, fuelled by a series of transformative projects. Urban regeneration, digital infrastructure, and improved regional connectivity are combining to unlock long-term value.
Western Thessaloniki is undergoing significant revitalisation, with the development of the bioclimatic Hub 26 business park drawing innovative firms and multinationals. Meanwhile, the €500m ThessINTEC science and technology park - located near the international airport, is one of the most ambitious innovation zones in Southeast Europe.
Infrastructure-driven regeneration is reshaping the city’s spatial dynamics, opening up formerly peripheral areas to higher-value uses. In 2025–2026, investment volumes in logistics, residential rentals, and mixed-use commercial properties are expected to grow significantly.
Office Market Dynamics
The office market is increasingly characterised by demand for flexible, energy-efficient, and well-connected spaces. While Grade A supply remains limited, new developments such as Hub 26 and planned office clusters within ThessINTEC are helping close the gap.
Multinational occupiers are seeking campus-style spaces with access to talent and mobility. Co-working, incubators, and innovation hubs are also gaining traction, with rising interest from R&D teams and digital start-ups. Office rents have shown moderate growth and are expected to increase further in the most desirable submarkets.
Fix Brewery
Retail Market Trends
The retail sector in Thessaloniki is gaining renewed momentum. The opening of the Thessaloniki Metro in late 2024 has improved access to retail corridors, boosting footfall across the central business district and newly revitalised nodes. Projects such as the Fix Brewery redevelopment are reshaping consumer experiences, blending commercial, dining, and cultural amenities.
Retailers are targeting integrated mixed-use zones, reflecting shifts in consumer behaviour. With tourism and student populations rising, high street and experiential retail formats are outperforming traditional models.
Industrial & Logistics Market
Logistics is perhaps Thessaloniki’s most dynamic real estate segment. The expansion of Pier 6 at the Port of Thessaloniki, integration with the A1 motorway, and planned connection to the national railway network are cementing the port’s role as a logistics hub for Southeast Europe.
Key developments include:
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Gonou Military Camp Logistics Centre: A 672-acre site in western Thessaloniki poised for modern freight infrastructure.
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Former Balkan Export Site: A 355,000 m² site being redeveloped by DIMAND into one of the largest logistics hubs in Northern Greece.
Rising e-commerce demand and multimodal infrastructure improvements will likely tighten logistics vacancy rates and place upward pressure on rents in 2025–2026.
September Hotel
Hotel & Hospitality Market Outlook
Thessaloniki’s hospitality market is evolving into a year-round proposition. The launch of the metro system, expansion of airport capacity, and broader tourism strategy are attracting both business and leisure travellers.
The under-construction SNF University Paediatric Hospital and new oncology hospital are enhancing the city’s healthcare infrastructure, boosting medical tourism potential. Meanwhile, the proximity of ThessINTEC to the airport creates demand for business and conference hotels.
SNF University Paediatric Hospital
Boutique, lifestyle, and luxury segments are seeing the most development activity. Occupancy and average daily rates (ADR) are forecast to grow steadily through 2026.
Thessaloniki’s hospitality sector is experiencing a renaissance, with several high-profile hotel projects underway:
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NYX Hotel Thessaloniki: Opened in autumn 2024, marking the Fattal Group's entry into the city.
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September Hotel Thessaloniki: A five-star hotel opened in March 2025, formerly known as Nikopolis, managed by HotelBrain.
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Electra Hotels’ New Property: A five-star hotel under construction at the intersection of Tsimiski and Ethnikis Amynas streets, expected to become a landmark upon its completion in 2027.
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Tourist Hotel Redevelopment: The historic Tourist Hotel is undergoing a €5 million transformation into a luxury five-star establishment, enhancing the city's upscale accommodation offerings.
These developments reflect growing investor confidence in Thessaloniki’s tourism potential and are expected to elevate the city’s profile as a premier destination in Northern Greece.
Conclusion
Thessaloniki is at a pivotal moment in its urban and economic evolution, driven by infrastructure-led regeneration, strategic investments in technology and hospitality, and its key position along the Balkan gateway. As flagship projects reach completion over the next two years, the city is emerging as a high-potential destination for real estate capital. With a firm commitment to innovation, sustainability, and cultural heritage, Thessaloniki offers C-level investors a timely opportunity to enter a dynamic market poised for long-term growth.
Mentions:
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ThessINTEC S.A. – Developer of Thessaloniki Innovation & Technology Center
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AVAX S.A. – Contractor for the FlyOver Project (in consortium)
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MYTILINEOS S.A. – Contractor for the FlyOver Project (in consortium)
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Thessaloniki Metro – Public transportation infrastructure developer
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Thessaloniki Port Authority (ThPA) – Managing the expansion of Pier 6 and port redevelopment
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DIMAND S.A. – Investor and developer of the Former Balkan Export Site logistics hub
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Stavros Niarchos Foundation (SNF) – Developer of the SNF University Paediatric Hospital
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HotelBrain – Operator of the newly opened September Hotel Thessaloniki
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Fattal Group – Operator of NYX Hotel Thessaloniki
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Electra Hotels & Resorts – Developing a new five-star hotel in central Thessaloniki
