Through the new “Renovate” program, which is expected to be presented soon and launch within June, the government is attempting a significant new intervention to increase the supply of available housing. The goal of the new program, which will subsidize broader home renovation work and not just energy upgrades, is to open up and offer to the rental or sales market thousands of homes that currently remain closed.
The new program fits into the logic of increasing housing supply, as research has shown this is the most effective way to address the acute housing crisis facing Greece and most other European countries. Increasing subsidies reduces costs, but strengthens demand and intensifies pressure for price increases in the housing market.
The key features of “Renovate”
The new “Renovate” program is expected to have a total budget of around 500 million euros and will provide significantly increased cost coverage compared to previous programs, which will increase according to the number of children in the family. It will also provide increased income limits for inclusion. Thus, subsidies can reach up to 90%-95% of renovation costs with basic funding up to €36,000 per home. It should be noted that in the previous cycle of the renovate program, the amount of eligible expenses was €10,000. The funding amount will be increased by €5,000 for each child, meaning that for a family with two children it will amount to €46,000. According to plans, the program will cover old homes up to 120 square meters. The funding amount will be calculated with a maximum limit of €300 per square meter.
The two phases of the program
There will be two implementation phases of the program. In the first phase, scheduled to begin in June, screening will be conducted to select properties that meet the program inclusion requirements. In the second phase, estimated to begin in September, inclusion applications will be submitted by property owners who have passed the first phase. According to information, during the first phase of the program, priority will be given to evaluating the eligibility of closed homes, and then cases of properties already inhabited will be examined.
In this specific program, the coverage weight will fall more on expenses for renovation work and less on energy upgrades, as the main goal is immediate strengthening of suitable housing supply in the market. It is estimated that 80% of interventions will concern renovations and 20% energy upgrades.
