The government is implementing a series of interventions to increase housing supply and provide solutions to the housing crisis through social compensation schemes and the release of housing stock currently held by loan servicers. These are two priority moves for the government’s economic team, as they are expected to provide significant relief to the housing problems observed in major cities across the country, particularly in Athens and Thessaloniki.
25,000 Properties in Servicers’ Hands
The Ministry of National Economy and Finance is prioritizing the search for appropriate regulations that will allow approximately 25,000 properties held by servicers to enter the market, which currently remain underutilized due to urban planning and other issues.
Minister of National Economy and Finance Kyriakos Pierrakakis is already in discussions with banks and servicers who have submitted their proposals to resolve these issues. In the immediate future, once decisions are finalized, a relevant regulation is expected to be promoted to address the current difficulties in releasing this significant housing stock to the market.
Simultaneously, the government’s economic team is accelerating procedures for implementing the social compensation scheme through which private parties will be assigned to construct housing on public properties that remain underutilized today.
The goal is to launch the tender for the first package of 1,000 public properties by the end of the year, possibly even earlier after summer. This involves 1,000 of the 6,500 public properties (ETAD) that will be made available for private development under the social compensation scheme. According to the plan, private developers will construct housing on these properties, with 30% allocated based on social criteria and the remaining 70% available for sale. It is estimated that approximately 10,000 homes can be built from the first package of 1,000 properties, while the total development of all ETAD properties could yield 25,000-30,000 housing units over time.
Housing Crisis Response is Top Priority
For the government, interventions to address the housing problem constitute a top priority issue. This was the message from this week’s meeting chaired by the Prime Minister, where the new digital platform stegasi.gov.gr was presented. Citizens can access information about all programs for acquiring, renovating, repairing, or upgrading housing, as well as subsidies, tax reliefs, and other facilities offered to owners and tenants.
The new digital portal presents for the first time detailed information about 43 housing initiatives with a total budget of 6.5 billion euros. These initiatives include 21 housing programs covering “My Home 1,” “My Home 2,” “Renovate-Rent,” energy upgrade opportunities, rent reimbursement, and 11 tax regulations including ENFIA property tax reductions, tax exemptions for long-term rentals, and restrictions on short-term rentals. Each citizen can use the platform to calculate the benefits from each program and begin their participation application.
