Greece to launch ‘Spiti Mou III’ housing loan program in January

The Greek Ministry of National Economy and Finance and the Hellenic Development Bank are planning to launch ‘Spiti Mou III’, a new housing policy program scheduled for January. The initiative aims to provide up to €2 billion in funding for new housing loans, with a 50/50 split between public funds and commercial banks. Public funding will be sourced from the Recovery Fund and the Hellenic Development Bank’s reserves.

The program introduces several expanded criteria compared to its predecessor, ‘Spiti Mou II’. The maximum property value threshold is set to increase to €300,000 from €250,000, and maximum loan amounts will rise to €230,000 from €190,000. Additionally, the age limit for beneficiaries will increase to 55 years, and income limits for families without children will rise to €39,000 annually.

While the program aims to assist approximately 9,000 to 10,000 households, some analysts warn of potential market consequences. There are concerns that expanding eligibility and increasing loan amounts could drive up real estate prices further, potentially exacerbating the structural housing issues in the country rather than providing a long-term solution.