Athens' Pro-Palestine Enclave Faces Resentment as Israeli Buyers Fuel Property Boom

In the heart of Athens' Exarchia neighborhood, a district renowned for its radical left-wing politics and strong pro-Palestine sentiment, a growing wave of property acquisitions by Israeli buyers is stirring local resentment. Tonia Katerini, a 69-year-old architect and long-time resident, is digitally mapping these foreign purchases, which she says are transforming her community. Using public records, Katerini and a group of neighbors have marked numerous foreign acquisitions with red dots on a map, revealing a landscape increasingly dominated by new company-run hotels and rental properties, with a significant portion attributed to Israeli investment.

The influx of these properties, often converted into short-term rentals, is pushing out long-term residents. Katerini, who has lived in her Exarchia flat since 1986, describes her street as being awakened by the noise of tourists' suitcases. Israeli investors have reportedly purchased two buildings on her street, with the flat below hers owned by an Israeli company. This situation creates friction in a neighborhood where Palestinian flags are a common sight and solidarity slogans adorn walls.

Other buildings in the area bear slogans such as "Airbnbs leave us homeless" and "Zionists not welcome," with activists using red paint to mark keypads and facades of buildings converted into short-term rentals. Residents argue that this aggressive gentrification, fueled by foreign capital, is pricing locals out and eroding the area's distinct identity. According to the Bank of Greece, non-residents invested a record 2.75 billion euros in Greek real estate in 2024. While official figures do not break down foreign buyers by nationality, a survey by RE/MAX Hellas indicated that Israelis were the largest group of foreign buyers in Attica, the region surrounding Athens, surpassing buyers from Turkiye and Lebanon.

Exarchia's history is steeped in political activism, including the 1973 student uprising against the US-backed military government and the 2008 protests following the police shooting of Alexandros Grigoropoulos. Chrysoulla Papageorgiou, a 46-year-old schoolteacher who has lived in Exarchia for 24 years, recalls the neighborhood as a place of solidarity. She notes that the change began subtly, with small owners renting spare rooms, but accelerated after the COVID-19 pandemic as companies started acquiring entire buildings. "Overnight, tenants were displaced and apartment blocks emptied," she stated, observing the rise of new bars and increased rents that displaced low-income families and migrants.

Historically, Exarchia residents provided shelter to refugees in occupied buildings. However, many of these buildings, situated on prime real estate, have been emptied by police and sold. Papageorgiou laments that only one such building remains, still serving as a sanctuary for migrants and refugees, with neighbors ensuring the children attend school. The neighborhood has also seen significant changes with the ongoing construction of a new metro station at Exarchia Square, a project many residents opposed. Papageorgiou believes the aim is to transform central Athens into a purely touristic destination, noting that recent buyers have been "almost only Israeli." The Greek government's relationship with Israel, including a recent missile deal worth $3.5 billion signed in August, is seen by some as contributing to Athens being a welcoming environment for Israeli investors.

Real estate agents like Vagelis Lazaridis, who heads a branch of the Athens-Attica Real Estate Agents’ Association, describe Exarchia as a "run-down area" that presented a "very good opportunity" for investors due to its central location, proximity to the metro and universities, and fewer building restrictions compared to areas like Plaka. He notes that once a few buyers arrive, others tend to follow.

In an effort to cool the property market, Greek Prime Minister Kyriakos Mitsotakis announced an increase in the transfer tax for non-EU homebuyers from 3 percent to 15 percent, effective from July. This move, reported by The Jerusalem Post as signaling the end of a lucrative period for Israeli investors in Greece, has led some non-EU buyers to expedite their purchases before the deadline.

However, not all in the real estate sector see this as a definitive end to foreign investment. Iryna Rondyak, an estate agent who observed Israeli buyers making up about 60 percent of her foreign clients a decade ago, notes a significant decrease in foreign sales this year, attributing it partly to new government schemes like "Spiti mou" (My Home) which encourage local buyers. New regulations, including a freeze on short-term rental licenses in central Athens until the end of 2027 and restrictions on properties acquired through the "golden visa" scheme, are also contributing to a shift. Rondyak states that while the situation has improved with "far fewer" Airbnbs, the problem of high rents and vacant properties persists.

Residents remain skeptical, viewing the rental freeze as temporary and believing that wealthy investors can still find ways to acquire property. The changes already implemented have significantly altered the neighborhood's fabric, with many buildings already converted into short-term rentals. Papageorgiou considers herself fortunate, as her landlady, whose family has long resided in Exarchia, refuses to increase rent, viewing it as an "act of resistance."