At a time when both rents and apartment purchase prices have skyrocketed, 12,500 beneficiaries are expected to acquire their own home by 2026, through the “My Home II” program, as well as the expanded “Social Housing” program, targeting young people, vulnerable social groups, civil servants, and armed forces personnel. The absorption from the major housing program “My Home II”, according to data from the Ministry of Social Cohesion and Family, has reached 65% with 1.3 billion euros allocated, covering housing acquisition for 11,000 citizens.
According to ministry officials’ estimates, from the 700 million euro fund running until May 31, 2026, following the extension granted and the expansion of income criteria, this amount is sufficient to cover housing needs for another 10,000 beneficiaries, given that the average cost for apartments so far ranges between 120,000 and 130,000 euros, compared to the program’s 190,000 euro limit. This difference provides room for purchasing more apartments.
“My Home II” & “Social Housing”: expanded criteria
Age and income criteria have been expanded, allowing individuals aged 25 to 50 years, with minimum income of 10,000 euros and maximum depending on their family status -20,000 for unmarried, 28,000 for married or cohabiting couples increased by 4,000 per child and 31,000 for single-parent families plus 5,000 per child beyond the first- to acquire their own home. The economic advantage for program beneficiaries is zero interest rate for 50% of the housing loan, while the remaining 50% is covered by partner banks with low variable interest rates.
The maximum loan amount granted is 190,000 euros. The loan covers up to 90% of the property value as defined in the purchase contract. The borrower must then pay at least 20,000 euros from their own resources. If the property value is 250,000 euros, the loan will be limited to the maximum of 190,000 euros and the borrower must cover the remaining amount. Loan duration ranges from 3 to 30 years. The primary security for financing is the acquired property. The mortgage security will not exceed 120% of the loan.
Practically, this means: If someone receives a 100,000 euro loan, the maximum value of mortgage security (i.e., the property value for which a mortgage will be registered) cannot exceed 120,000 euros. Third-party personal guarantees are not permitted for loan approval. For spouses or cohabiting partners, household income is considered regardless of whether they file separate tax returns. Purchase example: a 100 sq.m. apartment in Agia Paraskevi, built in 1987, selling today for 220,000 euros, purchased with a 150,000 euro loan for 25 years. The installment without “My Home II” approaches 900 euros, while with the program it’s limited to 600 euros. Benefit for the beneficiary: 300 euros per month. Total benefit over the 25-year loan exceeds 85,000 euros.
2,500 homes expected from public building renovations – Three pillars
Meanwhile, 2,500 homes are expected from renovations of public buildings to be provided through the social housing program, which develops along three pillars:
- The general social housing framework targeting vulnerable groups.
- The special program for civil servants serving in remote areas or far from their permanent residence.
- The targeted housing program for armed forces personnel.
According to Social Cohesion and Family Minister Domna Michailidou, the program is based on renovating local government properties -vacant municipal and regional buildings- to convert them into housing for those serving “away from headquarters”.
The program also includes former OEK properties, where construction of approximately 4,000 new apartments is planned, with a large portion returning to the state for allocation to households based on social and income criteria. The social compensation model provides that at least 30% of new housing will remain with the state and be allocated with social rent lower than market rates. The remaining apartments will be offered on the market, strengthening supply and contributing to gradual price deescalation.
Beneficiary selection will be conducted by OPEKA, emphasizing large and single-parent families, households with disabled members, and young people. Mapping of available plots has been completed, with 10 large areas in Athens, Thessaloniki, and tourist regions being prioritized. A significant component of the overall housing policy is the housing program for armed forces personnel. This is one of the largest projects ever designed for military personnel, aimed at addressing chronic housing problems and strengthening personnel retention in border areas. The program provides that by 2040 the total number of housing units will reach 15,501, combining construction of new apartments and modernization of existing buildings. The first phase, already underway, includes 702 apartments in 54 complexes, in five Thrace cities and 13 Aegean islands, with a 100 million euro budget. 15% of new housing is designated for regional educators and doctors, contributing to strengthening local services.
Published in Sunday Afternoon Edition
