Subsidies for affordable housing are approaching.

“Housing prices are skyrocketing” and “treasure hunting”

Here are two phrases that can characterize the situation in the real estate market. Housing in Greece will continue to be expensive and hard to access. According to a recent study by the National Bank, the situation of excess demand for residential real estate will continue to develop until 2023-2024, which, combined with a slow decline in construction costs, will lead to an average annual increase in housing prices of about 7%.

The government has two more tools.

To increase the supply of real estate on the market, we are talking about the "Repair-Rent" program, which has remained on paper since 2022, and a more long-term social support program. Approximately 750,000 residential units are currently recognized as vacant, accounting for 15% of the total housing stock in the country, and could significantly alleviate the situation if they were returned to the market. Under the "Repair-Rent" program, which is expected to be activated by the end of the year, vacant properties will be brought onto the market by subsidizing owners for their repairs and modernization. Homeowners with an annual income of up to 40,000 euros and property valued at up to 300,000 euros will be able to participate in the program, excluding those who have participated in energy-saving or renovation programs for any of their properties in the last five years. The property must have an area of up to 100 square meters and be located in an urban area, must not be declared as a primary residence or rented out, and must be listed as vacant for the past three years.

There are also plans to build blocks of social housing.

Starting from 2024, the goal of the program is to build 2,500 well-equipped residential houses for 5,000 young people aged up to 39 years. A preliminary analysis for the implementation of the program has identified 98 suitable plots of land within urban plans, covering a total area of 627 acres, a third of which is located in Attica, as well as 10 plots with building permits totaling 75 acres, which are considered the most suitable for use. The planning also includes areas outside urban plans, as well as vacant houses, apartments, and offices. In 2024, the development and selection of contractors based on technical specifications defined by the General Directorate of State Real Estate is expected. In 2025, private builders will begin constructing residential houses, and the General Directorate of State Real Estate will invite and select recipients according to the criteria. From the beginning of 2026 until the end of the year, a gradual leasing of 50% of the residential houses on behalf of the state at low rental rates to young people according to the criteria is expected, and a special quota will also be established for families with three or more children.