High on the government’s agenda is the housing issue since it is one of the burning issues of the citizen’s daily life.
In this context, Prime Minister Kyriakos Mitsotakis, in two weeks from the TIF stage, will unfold the framework of the government’s intervention, in order to give a real breath to thousands of households who are facing a serious problem, both because of the expensive rents and because of the lack of houses in the market.
The financial staff and the Maximos Palace are working on a package of interventions that has a single goal the increase in housing offered for rent and, through it, the decline in pricesin order to make housing affordable for households.
The information states that it will seek to achieve this goal through multi-layered solutions rather than a single intervention. In general the aim is to open closed apartments, which are either inactive by choice or are in poor condition and cannot be rented. At the same time, it will seek to discourage landlords from offering their apartments for short-term rental and return them to the long-term rental market.
The first objective is estimated to be achieved by establishing incentives and disincentives for closed apartments. In fact, AADE is already starting to record them, in order to have a clear picture of their number, as estimates differ. Others speak of 200,000 properties, while others of 600,000.
Also, it will be sought to have a clear picture of the condition of each property, so that any interventions can be decided accordingly.
It is also estimated that the housing supply will improve from the implementation of the decision to increase the threshold for granting the Golden Visa from the current 250,000 euros to 800,000 euros. The measure will be implemented from September 1.
On the other hand, the Panhellenic Federation of Property Owners (POMIDA) considers that incentives should be given and not punitive disincentives, such as the increased ENFIA for closed apartments.
The six axes
According to the scenarios that exist so far, the government’s interventions will move, among others, along the following six axes:
- Closed apartments: In the government they consider that there is a huge stock of inactive properties, which under certain conditions can affect the supply of housing in the market. Their exploitation process will begin by recording their characteristics, such as location and condition, to consider how they can be further exploited.
- Short term leases: There will be changes in the functioning of the market, with interventions mainly of a tax nature and increased rates. Also, it is possible that a limit, depending on the area, will be set on the rental properties or a combination of the two.
- Real Estate Registry: The creation of a platform for the public posting of real estate information is being considered in order to enhance transparency in the market. The platform will include information on sales and rental prices, with the aim of combating tax evasion and providing better information to the public.
- “My House II”: The government is awaiting approval from Brussels for the inclusion of the second stage of the “My Home” program in the Recovery Fund. The new stage of the programme, with a budget of 2 billion euros (of which 1.7 billion euros from Community funds), will include changes to the age and income criteria, as well as the conditions for the value and age of the properties.
- “Social Compensation”: The program will provide low-rent housing from idle State property. It is planned to build more than 2,500 homes for citizens up to 39 years of age, with the option to buy after a certain period of time.
- Renovate-Rent: The program will be strengthened by increasing the subsidy for repair work in closed apartments, so that they enter the rental market.
These initiatives are expected to contribute to solving the problems of the real estate market, enhancing accessibility for citizens and offering solutions to the housing crisis that affects many in Greece.
Source: RES-MPE
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