Rising rents and tourism have led to a housing shortage in Greece - Latest news

In recent years, Greece has been facing a serious housing problem, which has become particularly acute in the lead-up to the European Parliament elections scheduled for June. For many Greeks, the main challenge is finding affordable housing. Rising rental prices, a record number of tourists, and active foreign investments in real estate have created real difficulties in obtaining subsidized housing. Thousands of citizens are confronting this pressing issue.

Kiryaki Tsoutis and Dionysis Giakumelos are an example of people caught in a difficult housing situation. 32-year-old Tsoutis is unemployed, while her partner, also 32-year-old Giakumelos, earns 750 euros a month. The couple wishes to start a family, but...60%Their income goes towards housing. Even in the semi-rural settlement of Koropi, located east of Athens, the rent for an apartment of80 square metersexceeds500 euros per month“This is a significant increase for our already limited budget,” notes Tsutis in a conversation with AFP.

This problem affects an increasing number of people in a country with a population10.4 millionCitizens' incomes have significantly decreased during the debt crisis.2009 to 2018...and they still haven't returned to normal. According to Eurostat data, Greece ranks...21st place among 27 EU countriesin terms of household income, even after raising the minimum wage to830 eurosAccording to the report from the Bank of Greece, inin 2022the Greeks spent34.2%of their income on housing, while the average in the EU is only19.9%According to OECD data, with2009 to 2022Salaries in Greece have decreased by32%This organization declared Greece as the country with the lowest wages among developed economies.

The reductions in pensions during the crisis have also had a significant impact on the purchasing power of citizens.

In some areas of Athens, entire buildings have been acquired by Chinese, Turkish, Russian, and Middle Eastern investors. This has been made possible by the "golden visa" program, which is also implemented in other EU countries such as Cyprus, Portugal, and Spain. Introduced during the debt crisis to support the economy, the program offers foreigners residency in exchange for investments in real estate amounting to several hundred thousand euros. As in other popular European tourist destinations, this situation has negatively impacted the short-term rental market.

“The real estate market is saturated,” says Malutas. “Excessive tourism and the 'golden visa' program have attracted foreign investors and created demand, while Greek incomes continue to remain stagnant,” he adds. “Owners prefer to rent or sell their apartments in Athens at inflated prices and move to the outskirts.” This complex housing situation remains one of the most pressing issues for Greeks who find themselves trapped in a cycle of securing housing.