The Greek government has unveiled two major initiatives, social rent and social housing, in an attempt to ease one of Europe’s most severe housing crises.
Minister for Social Cohesion and Family, Domna Michailidou, described the measures as “complex tools” that depend on cooperation between multiple agencies and stakeholders.
The new programmes aim to mobilise long-neglected public assets, including vacant state-owned land and inactive military sites.
Three former military camps in Athens, Thessaloniki and Patras have been earmarked for the first phase of the plan, which targets the creation of 1,500 to 1,700 social housing units for middle-income households, reported Euro News.
“Our goal is to increase housing stock quickly and place it exactly where it’s needed – in the heart of our urban centres,” Ms Michailidou said.
Social renting model
Alongside social housing, the government is introducing a social renting scheme based on public-private collaboration.
Under the model, private investors will redevelop disused public buildings, returning at least 30 per cent of the completed homes to the state for use as affordable housing.
“We are increasing the housing stock, making use of stagnant public property, and creating new social housing where there is a need,” Ms Michailidou explained.
However, industry experts have warned that these measures, though effective elsewhere in Europe, could prove difficult to implement in Greece.
Publicly owned properties often have complex ownership structures, which can take months or years to resolve.
Lengthy licensing and approval procedures for new developments also risk delaying progress.
Real-estate groups have urged the government to introduce “fast-track” planning procedures, similar to those used in the lead-up to the Athens Olympic Games.
A crisis of supply, demand and quality
According to a new study by property platform Prosperty, Greece’s housing market faces deep structural imbalances.
Many available homes are decades old, most built in the 1960s and 1970s, and only about one in ten has been renovated.
The market currently offers around 131,000 properties for sale and 45,000 for rent, yet a significant number remain vacant for between six months and two years, reflecting a mismatch between price and quality.
The average asking price stands at about €300,000 (approx. A$490,000) or €2,500 (A$4,100) per sq m, while newly built properties often exceed €6,000 (A$9,800) per sq m, putting them out of reach for most middle-income households.
Meanwhile, homeownership has fallen by 12 per cent, and young people struggle to enter the market amid large mortgage down-payment requirements.
Calls for transparency and reform
Prosperty’s report recommends a series of reforms, including rent-to-buy schemes supported by the state, expansion of the government’s My Home loan programme for young buyers, targeted tax incentives, and state guarantees.
Other proposed measures include graduated taxation on vacant apartments, converting unused commercial spaces into homes, and creating a national Multiple Listing Service (MLS) to improve market transparency and data accuracy.
