This picture is reflected in the latest report by Danos – Melakis, a member of BNP Paribas RealEstate, for the first half of 2026. According to the research, Crete is following the broader upward trend of the Greek housing market, at a time when prices nationwide continue to rise, but at a clearly lower pace compared with previous years. Specifically, in the first half of 2026, housing prices in Greece increased by 5.7% year-on-year, compared with rates that were closer to 8%-9% during the 2024-2025 period. The market, therefore, is not in a phase of decline, but is entering a period of normalization, with greater differences now emerging from one area to another.
From €2,100 to €3,120 per square meter in Crete
In Crete, demand remains strong from both Greek and foreign buyers, while the limited availability of new homes supports prices. According to Danos–Melakis, average residential selling prices on the island are estimated to range from approximately €2,100 to €3,120 per square meter.
This is, however, an average that conceals very large differences. Location, quality and the age of the property, but above all proximity to the sea and popular tourist destinations, can significantly raise the price level. Chania and the prime coastal areas show the strongest performance, while Heraklion continues to be the island’s largest owner-occupied housing market.
A similar picture is recorded in long-term rentals. Average asking rents in Crete are estimated at approximately €8 to €10 per square meter per month, having recorded an annual increase of around 7.6%.
Chania at the top – Up to €5,500 per square meter
The major differences between individual areas become even more evident in the case of Chania. According to the report, the city continues to be the most expensive residential market in Crete, with high-specification properties reaching the upper end of the price range.
In Nea Chora, residential prices are moving within a particularly high range, from approximately €2,500 per square meter and can exceed €5,000, approaching even €5,500 per sq.m. for the most expensive properties.
In Halepa, one of the most sought-after areas of the city, the range is approximately €2,400 to €4,800 per sq.m., while in the center of Chania the highest prices are close to €5,000 per sq.m. High values are also recorded in Dikastiria, where prices can likewise approach €4,800 per sq.m.
Lower, although it can no longer be characterized as a cheap market, is the area of Lentariana – Amperia, where prices start at just over €2,000 and, for the best properties, can move close to €4,000 per square meter.
The picture in Heraklion
In Heraklion, average prices are comparatively lower than those in Chania, although significant differences are also recorded here depending on the neighborhood and the characteristics of the property.
In Agios Ioannis, values start at approximately €1,800 per sq.m. and, for the most expensive properties, can approach €4,700-€4,800. In Mesampelies, the range moves approximately from €1,800 to €4,000 per sq.m., while lower levels are found in Koroni Magara, with prices of approximately €1,500 to €3,000.
Particularly strong performance is recorded in Pateles, where the highest values approach €4,800 per square meter, with the lowest prices standing close to €2,300.
In Rethymno, according to the report, the market is characterized by medium price levels and relatively stable growth dynamics. The picture in Lasithi is more fragmented, as values differ significantly between inland and coastal areas. A particular category is the wider area of Elounda, where the presence of foreign buyers and the luxury housing market significantly strengthen values.
The role of foreign buyers
One of the elements that continue to support the Crete market is international interest. Foreign buyers have a significant presence mainly in Chania and the wider area of Elounda, strengthening demand for higher-specification homes.
This fact, combined with the limited availability of high-quality housing stock, creates an environment in which prices are unlikely to decline easily. Danos – Melakis points out that the limited supply of high-quality homes continues to exert upward pressure, while also strengthening Crete’s position as an important investment destination in the Greek real estate market.
Short-term rentals are changing the balance
Short-term rentals continue to play an important role in the equation of the Cretan housing market. Strong tourism demand creates a second source of interest in the housing stock, particularly in coastal areas, Chania and established tourist destinations.
The latest available AirDNA data show an interesting change: the supply of short-term rentals in Crete is declining, but the performance of those remaining in the market is improving. In June 2026, there were approximately 32,395 active short-term rental listings on Airbnb, Vrbo and Booking.com, a number down 5.7% compared with one year earlier.
Despite the decline in supply, average occupancy stands at 61%, up 4.5% year-on-year, while the average daily rate reaches $230, recording an increase of 4.8%. Average annual revenue per active property is estimated at approximately $15,500, up 4.3% compared with one year earlier.
The structure of this particular market is also interesting. Approximately 91% of active listings concern entire homes rather than rooms, while almost half –47.1%– are one-bedroom properties.
This picture has a dual reading for the real estate market. On the one hand, the decline in the number of active listings shows that short-term rentals are no longer expanding at the rates of previous years. On the other hand, higher occupancy rates and increased daily rates keep this use attractive for properties in tourist locations. Thus, especially in areas with high visitor traffic, part of the housing stock continues to be sought simultaneously by holiday-home buyers, short-term rental investors and those looking for a home for long-term rental.
