Greece rental market faces supply-demand imbalance

Stratis Paradias, president of POMIDA, has identified several key drivers behind the high cost of rentals in Greece. Speaking to ERTnews, he noted that an imbalance between supply and demand is the primary cause, exacerbated by a shortage of small residential units that have not been sufficiently produced over the last 20 to 25 years.

Paradias highlighted shifting social dynamics, noting that modern households are more fragmented than in the past. While multiple generations once shared single homes, the rise of separate households for grandparents, couples, and separated individuals has increased the demand for individual dwellings. Additionally, urbanization continues to drive demand.

To address the crisis, Paradias suggested that more incentives are needed to encourage owners of vacant properties to return them to the long-term rental market. He specifically mentioned the need for tax incentives, such as the existing three-year tax exemption for certain properties returning to long-term lease. He also emphasized that owner uncertainty regarding the financial consequences of choosing specific tenants remains a significant hurdle.