Prime Minister Kyriakos Mitsotakis announced a new package of interventions to address the housing problem during his speech in the budget debate, describing housing as one of the core priorities of economic policy.
One of the measures concerns short-term rentals. As announced by the Prime Minister, restrictions are being extended to the center of Thessaloniki, while in Athens and Thessaloniki, where bans are already in force, any property used for short-term rental that is transferred to a new owner will be automatically removed from the Short-Term Rental Property Registry. According to the government, this regulation aims to prevent the recycling of properties within the short-term rental market and to increase the availability of homes for long-term leasing.
The remaining measures:
Mr. Mitsotakis announced an extensive renovation program for old and vacant homes, with a total budget of 400 million euros. The program will subsidize up to 90% of renovation costs, with a maximum amount of 36,000 euros per property. The income threshold for participation is set at 35,000 euros for a couple, with an additional 5,000 euros for each child.
The second intervention áöïñÜ support for public sector employees serving outside major urban centers. Approximately 50,000 teachers, nurses, and doctors working outside Attica and Thessaloniki will receive an annual refund equivalent to two months rent, without income criteria.
At the same time, the development of local plans is foreseen for the upgrading of municipal and state-owned buildings in mountainous and island regions. These buildings will be converted into housing for public sector employees, addressing a long-standing problem, especially in tourist areas with high rental costs.
In the field of private investment, the government is introducing a new framework of incentives for affordable housing. Construction companies will be able to build or convert existing buildings into residences exclusively for rental for a minimum period of 10 years. Rental income will be deductible from income tax, while the maximum rent level will be centrally determined.
Finally, the Ministry of Environment and Energy is promoting an urban planning regulation for the rapid conversion of existing properties into housing. Abandoned or unfinished buildings will be able to enter a private investment scheme in exchange for tax incentives.
The Prime Minister emphasized that the housing issue does not concern only young people, but all households, as he noted that it is one of the main factors absorbing a large share of disposable income, directly affecting quality of life and social cohesion.
