On Greece’s initiative, the housing issue will be high on the agenda of discussions at Friday’s informal Eurogroup in Nicosia, under the presidency of National Economy and Finance Minister Kyriakos Pierrakakis, at a time when the housing market crisis affects almost all European countries.
Housing crisis at Eurogroup: Greek initiative brings the issue to the top of the agenda
The Greek side seeks to open a substantive dialogue on policies that can be implemented at European level, as soaring rents, lack of available housing and increased pressure in major cities now constitute a common challenge for eurozone economies.
The session will present policy models implemented by three countries, Spain, Croatia and Ireland, which are considered characteristic examples of interventions to address the acute housing market crisis. The goal is for the 21 member countries participating in the Eurogroup to exchange experiences and draw ideas for effective affordable housing policies.
Spain: Restrictions on short-term rentals and affordable housing program
Spain has adopted a particularly interventionist model against rising rents and reduced housing availability, mainly in tourist areas. The government proceeded with restrictions on Airbnb-type short-term rentals, while also announcing a major affordable housing construction program with state funding. At the same time, incentives were given for utilizing vacant housing and rent control measures were examined in areas where the situation hit “red alert,” aiming to protect young people and low incomes from the extreme rise in housing costs.
Croatia: Taxation on vacant properties and stricter framework for Airbnb
Croatia, which faced a serious problem due to the tourism explosion and mass conversion of housing into tourist accommodation, chose to tighten the framework for short-term rentals. The government announced increased taxation on properties that remain vacant or are exclusively available for tourist use, seeking to return more homes to the long-term rental market. At the same time, changes in property taxation and facilitations for developing social and affordable housing are being promoted, in order to contain prices and strengthen young people’s access to housing.
Ireland: The “Housing for All” plan and thousands of new homes
The case of Ireland is also of particular interest, where the housing crisis was linked to chronic shortage of new housing after the 2008 economic crisis. Dublin faced explosive rent increases and serious shortage of available housing. The Irish government responded with the multi-year “Housing for All” plan, a multi-billion euro program that provides for the construction of tens of thousands of new homes each year, with emphasis on social and economically affordable housing. The plan includes subsidies for young buyers, strengthening social housing, utilizing vacant properties and measures to contain rental costs.
Greece: Why housing costs remain at pressure levels for households
In Greece, the situation remains extremely critical, making housing costs among the highest in Europe relative to household incomes. While rental and property prices continue to rise, a very large part of the housing stock remains unutilized even in areas with increased demand.
According to official data from the Ministry of National Economy and Finance, approximately 794,000 homes remain closed, despite tax incentives established by the government which so far have not delivered expected results. It is indicative that only 234 owners had used the three-year income tax exemption for 2025, who either put their properties on the market for long-term rental or withdrew them from short-term rental platforms.
