Greece housing crisis: rising rents and new government measures

Greece is facing a significant housing crisis as rising rental prices continue to impact household accessibility. According to Bank of Greece data and market indicators, rental costs remain high, with Athens' Southern Suburbs recording the highest average at 13.5 euros per square meter, followed by Athens and the Cyclades at 12.2 euros.

In response, the government is proposing a package of measures to increase housing availability and provide incentives for property owners. Key initiatives scheduled for implementation through 2027 include the ‘Home III’ program and subsidies for renovating closed properties, which could cover 70% to 95% of costs, up to 36,000 euros.

To encourage long-term rentals, the government plans to extend a three-year income tax exemption for owners who lease out closed properties or transition from short-term to long-term rentals. Additionally, restrictions on new short-term rental registrations are expected to continue in parts of Athens and Thessaloniki. Despite these interventions, critics note that previous measures have yet to significantly increase the supply of available housing.