Athens Residents Push Back on New Development, as Builders Defend Expansion Plans

Plans for a 14-storey residential tower near Mets have drawn sharp opposition from locals, turning a once-obscure City Hall application into a flashpoint for Athens’ rapid transformation.

This latest skirmish unfolds as developers race to capitalize on tight housing supply and rising prices. In recent months, concerns about affordable rentals and disappearing green pockets have grown louder, especially in neighborhoods like Exarchia and Pangrati. With real estate prices in central Athens now averaging €2,300 per square meter—up nearly 10% since last summer—every new concrete slab sparks tensions between long-time Athenians and newcomers in search of modern homes.

Old Quarters, New Ambitions

The proposed Mets tower, slated for a sloping plot on Kallirois Street, is hardly the city’s only controversy. In nearby Kypseli, residents recently petitioned against a cluster of short-term let apartments, arguing these developments further erode neighborhood character. "When you walk through Strefi Hill now, you see cranes, not pines," complained a member of the Friends of Kypseli public group. The Athens Urban Planning Office, meanwhile, says these projects are necessary: last year, the municipality approved 84 new planning applications city-wide, citing demand outpacing supply, especially near cultural anchors like the National Gallery and the Onassis Stegi.

Developers argue this influx addresses a crisis. Kostas Efraimidis, managing director at the locally based Terra Nova Properties, pointed to more than 22,000 apartment units registered on Airbnb across greater Athens. "There simply aren’t enough modern flats for residents who want to buy, especially families," Efraimidis said in a phone interview. "Every time a mid-rise goes up, dozens of people get a shot at living near their work or a good school." On the flip side, a survey by Panteion University found 63% of local respondents in Mets and Pangrati said they’d seen family or friends pushed out by rising costs or noise from construction in the past two years.

Numbers Tell a Fragmented Story

The latest data from the Hellenic Statistical Authority puts the annual permit volume for new residential construction across Athens at 3,690 units for 2025—about 17% higher than pre-pandemic levels. However, from Varnava Square to Koukaki’s raucous night streets, residents say the city’s core is losing its shadows and its soul. The Neighbourhood Planning Initiative, active in Petralona, says nearly 40 buildings in their district have been converted to short-term stays in the past year alone. Meanwhile, median monthly rents in the Mets-Kallimarmaro corridor now sit at €950 for a one-bedroom, per online listings surveyed last week—pricing out many young Athenians and pensioners alike.

City Hall has responded by promising a formal review of planning processes by October. For developers, the outcome may shape pipeline projects for years. For long-term residents, it could decide the character of the city’s neighborhoods—and who can afford to call them home.

The department urges those with opinions to submit feedback via the Athens gov.gr portal through July 25. Public information sessions on key developments, including the Mets tower, will be held at the Zappeion Megaron and the Kypseli Municipal Market on July 10 and 18, respectively.