The government is studying emergency measures adopted by other European countries to extinguish the “fire” of rent prices and halt the housing crisis. The problem is no longer limited to Athens and Thessaloniki, but is spreading to all major cities, with tourism development and short-term rentals worsening the situation. According to sources, government officials are currently examining models already applied in Europe with the goal of finding solutions that will contain housing costs without harming the free market.
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Various scenarios are on the table, including imposing rent caps in areas where rental prices are in the “red zone,” however, it appears they have not proceeded, as this is considered a legally and politically difficult choice. “If the state sets a maximum price, it limits freedom of contracts and intervenes in the market mechanism,” relevant circles emphasize. The picture in society is already suffocating, with housing evolving into the most expensive “bill” of daily life and a major burden factor for households.
It is characteristic that according to the latest Eurostat data, the average tenant in Greece now spends more than 35% of their income on rent, while the corresponding percentage in Europe stands at 19.2%. In practice, this means that for thousands of workers, rent “eats up” almost half their salary, leaving minimal margins for food, transportation, or savings.
European interventions on rental prices
In many European capitals, measures are already being applied to contain rental prices. In Paris, Barcelona, and Berlin, various rules have been established, such as “reference rent” mechanisms. Municipalities collect data on actual rents, taking into account the size, age, and area of the property.
With this data, an average reference rent is calculated, which determines the limits for rents. In France, for example, rent cannot exceed the average, while in Germany, increases in existing leases cannot exceed the local average. This limits excessive increases and extreme prices. This index is based both on prices requested in advertisements and on prices agreed between landlord and tenant. It is also readjusted annually to reflect the actual market situation.
What applies in other EU countries regarding rent
- Germany: For new leases, rent cannot exceed 10% compared to similar properties in the same area. The law only applies in areas that have been characterized as “highly pressured.” In Berlin, increases in existing contracts cannot exceed 15% within three years, while a temporary rent freeze was implemented.
- France: In Paris and other major cities, rent limits have been set for new leases or when the same properties return to the market.
- Ireland: Increases in already occupied homes are limited to 2% each year. From 2026, new leases will be able to increase more, to attract investment and build new homes.
- Spain (Catalonia): Since February 2024, laws limiting rents apply in 140 municipalities. There are zones where prices cannot exceed the reference index.
- Portugal: In 2023, the government ruled that increases in new contracts that succeed leases from the last five years cannot exceed 2%, to control prices in high-demand areas.
- Italy: Rents cannot exceed specific limits, which are agreed between owners, property owner associations, and tenants. When setting limits, the city area, building condition, services provided, and energy efficiency are taken into account.
