Psychiko is located to the south of the Olympic stadium. Psychiko is a strictly residential suburb of Athens, with commercial businesses allowed only within two small designated zones, the "Nea Agora" (New Market) and the "Palaia Agora" (Old Market), with current regulations also restricting buildings to full detachment, and a maximum of 3 floors. Psychiko was historically the home of aristocrats, members of the Greek royal family, and generally old money people. The area remains one of the wealthiest suburbs of Athens, with very high land value, and a number of embassies, particularly of rich Middle Eastern countries, to be found located in Psychiko, Neo Psychiko and neighbouring Filothei.
This was once home to Queen Frederika of Greece, until the military coup d'état of 1967. Andreas Papandreou and his wife Margaret also lived in Psychiko before the dictatorship. Later, when he became Prime Minister he left Psychiko and moved to Ekali. In recent decades however, many prominent families choose to build their houses in the southern, seaside suburbs, like Glyfada or Lagonisi. A number of Greek private schools are located in the area: the Athens College, the Moraitis School, the Arsakeio, and the area's most historic public school, the Varvakeio, in Neo Psychiko is also the prestigious Greek/French School "Ursulines". Public municipal facilities, for their part, include a very active cultural center, a 6-court tennis club, an indoor basketball/volleyball stadium, an outdoor basketball and volleyball venue, and a rollerskating rink.