Greek Government Launches Plan to Address Greek Housing Crisis

Athens, Greece. Photo source: Athens Attica

With a series of targeted measures, the Greek government aims to address the housing crisis by providing citizens with greater opportunities to own their desired homes.During his speech and media briefing at the 88th Thessaloniki International Fair, Prime Minister Kyriakos Mitsotakis announced new measures to relieve the issue, extending, among others, the age range of those eligible to own a home with state support.

“We want our fellow citizens to have the opportunity to own a home,” Mitsotakis emphasized, noting that “in many cases, their income is insufficient to cover the monthly mortgage payments.”

The announced measures 

Prime Minister Kyriakos Mitsotakis speaking at the first day of the TIF 2024. Photo source: Prime Minister’s press office

The Prime Minister announced four measures to further assist citizens interested in purchasing homes or renovating older properties, which are as follows:

– Launch of the second phase of the “My Home” program, totaling 2 billion euros from the Recovery Fund, aimed at helping over 15,000 young people or couples under 50 acquire their first home, with an interest rate set at half of the commercial rate.

– Introduction of a 400 million program offering loans of up to 20,000 euros at zero interest, aimed at facilitating the energy upgrades of thousands of older homes. According to Mitsotakis there is a significant stock of vacant apartments dating back to the time of the crisis, particularly in major cities.

– A 20 percent increase in the ENFIA (property tax) discount for homeowners who insure properties worth up to 500,000 euros against natural disasters.

– Retaining of the 10 percent VAT discount for properties that are insured. If not, owners will lose the right of compensation from the state in case of damage from April 2025.

To further address the rising housing crisis, the government also approved new regulations for the operation of short-term rentals in Greece and the granting of Golden Visa.