"The Greek paradox: Thousands of 'stuck' properties keep housing costs high."."

Thousands of properties are not offered on the market in Greece, leading to a rise in housing prices. Greece has more real estate per capita than any other OECD country. However, the cost of housing in the country is one of the highest in Europe, and7 out of10 young people cannot afford their own home. How is this paradoxical situation explained?

The answer lies in "locked" real estate: this is real estate that exists only on paper, but is not offered on the market. What kind of real estate is this?

**First of all, these are hundreds of thousands of old properties that require major renovation to be used. The high costs of repairs and upgrades prevent their use by owners who keep them "closed." The exact number of such properties is unknown.

Real estate that is in bank portfolios or service companies and is currently in the process of dispute resolution. It is estimated that there are about 700,000 to 1,000,000 properties in this situation. A very small portion of them is already being offered on the market. Market experts suggest that over the next two years, around 20% of these properties will be "cleared" and added to the supply.

Real estate designated for the accommodation of asylum seekers. There are over 3,000 apartments across the country, 60% of which are located in Attica. These apartments, if agreed upon by the owners, will be used as part of a new program for the most vulnerable.

In an effort to address the housing issue, the Greek government is planning a series of relevant measures. "Our goal is to open as many closed apartments as possible, of which there are hundreds of thousands," said Minister of Social Solidarity and Family Sofia Zacharakis. "We will launch renovation programs that will not only update energy efficiency but also improve the appearance. The 'Repair - Rent' program is expected to start in the coming months. We are also continuing social housing programs in our ministry. What are these programs? The 'Housing and Work' program for the homeless or people living in poor conditions. We cover rent for two years and all operational costs, as well as find them jobs and pay for their work for one year.

As Ms. Zaharakis explained, state-owned properties will be used through the social assistance program to build social housing. Throughout Europe, the cost of housing is a crisis parallel to the cost of living. In many countries, various social housing programs are being implemented using European funds.

As explained by British social housing expert Phil Jenkins at the recent 24th Prodexpo conference, a partnership between the public and private sectors can provide support to the most vulnerable households. "One of the issues right now is that levels of public debt are higher," said Phil Jenkins, Executive Director of Centrus. "There is less financial space for the government to intervene and provide solutions in the way it did in the past. This means that part of the necessary capital must come from private individuals. Therefore, the responsibility lies with governments to create a suitable environment where private investments can be used for affordable housing. Various mechanisms are employed in different European countries to attract private investment in this area. One of Greece's advantages is that it currently has a relatively unencumbered system for building affordable housing. Therefore, it has the opportunity, starting from a clean slate, to draw inspiration from the experiences of various European countries and try to create a solution suitable for the Greek market."

“Obstacles” preventing more real estate from entering the market include problematic planning and zoning, as well as a lack of incentives for investment in social housing programs. “We are a country with the highest amount of real estate per capita in the OECD. We need to make use of the existing properties, the vacant homes,” emphasized senior editor of DiaNEOsis, Ilias Nikolaidis, at the 24th Prodexpo conference. “For this, we need much more data about all areas, about planning, about prices, and the minimal amount of registered property in municipalities creates barriers to implementing many policies.” However, Greece still has high ownership rates. Specifically, 7 out of 10 Greeks own property, and 6 out of 10 live in their own homes.