The special support measures to address the housing crisis were presented by Kyriakos Mitsotakis during his speech at the discussion on the 2026 State Budget. Specifically, the prime minister presented six measures from the parliament podium to increase property supply. As announced, new restrictions on short-term rentals are being implemented, while a new framework of incentives for private investments in affordable housing is being established. Among other provisions, urban planning regulation from the Ministry of Environment is planned for the rapid conversion of existing properties to residential use.
Kyriakos Mitsotakis: Housing crisis measures
The housing crisis measures as announced by the prime minister:
– Generous home renovation program – covering up to 90% of expenses – 400 million euros for upgrading old closed properties with subsidies up to 36,000 euros. Income limit of 35,000 euros for couples with 5,000 euro increase per child.
– For 50,000 teachers, nurses and doctors outside the urban centers of Attica and Thessaloniki, two annual rents will be refunded, regardless of their income.
– Local upgrade plans for municipal and state buildings in mountainous and island areas for housing for public employees.
– New restrictions on short-term rentals: Current regulations extend to central Thessaloniki – Additionally, in Athens and Thessaloniki where short-term rentals are prohibited, when such property is transferred, it will be automatically deleted from the Short-Term Accommodation Property Registry.
– New incentive framework for private investments in affordable housing: Construction companies will be able to build apartments or convert existing buildings to residences exclusively for rental of at least 10 years. Rents will be deductible from income tax and maximum rent limits will be centrally determined.
– Urban planning regulation from the Ministry of Environment for rapid conversion of existing properties to residential use. Abandoned or unfinished buildings will be included in the private investment category with tax deduction incentives.
Housing is among the main priorities of the Budget, not only as a problem for young people but also as a sector that absorbs a large portion of household income.
