By Penelope Galliou

The “housing file” is opened today by the government through the Prime Minister in the Parliament, in the context of the answer that will be given by the Kyriakos Mitsotakis to his topical question Nikos Androulakis on “How the Government intends to deal with the ever-intensifying housing crisis”. According to information, the prime minister is expected to announce a series of actions to alleviate and rationalize the real estate market, which shows an increase in purchase and rental prices, with a parallel lack of real estate.

Among the solutions that Megaron Maximos has considered to stimulate the supply of real estate are tax incentives for owners who decide to put their properties on the market. Thinking based on the recent proposal of POMIDA, if the lessor or grantor is a natural person to deduct a rate of 5% for repair, maintenance, renovation or other fixed and operational costs of the property. This percentage should increase to 100% if the income comes from a new lease of a residence of at least three years with a starting date from 1.1.2024 to 31.12.2026 and for the first three (3) years of each lease, as long as the residence is leased to natural persons for use as their main residence and was vacant at least throughout the year 2023 or had an active short-term rental AMA on 31.12.2023.

According to the data available to the government, today they exist approximately 750,000 homes declared vacantwhich could be a significant breath of fresh air if these were made available on the market.

However, the two main programs that the government is expected to run in 2024, in order to deal with the housing problem, are the “Renovate to rent” and the “social compensation” program.

The “Renovate – Rent” concerns real estate – as the title of the program indicates, exclusively for rent, and aims to bring vacant homes into the market by subsidizing the owners to upgrade them. Homeowners with an annual income of up to 40,000 euros and real estate up to 300,000 euros can participate in the scheme, and the subsidy for repair and renovation costs can reach up to 10,000 euros, while those who have joined energy saving or renovation programs for any property of theirs in the last five years.

The social compensation program concerns the utilization of idle public buildings or plots of land and through the partnership of the public and private sectors, low-rent housing will be created. It aims to build 2,500 social housing for 5,000 young beneficiaries up to 39 years of age, while in view of the program, according to information, plots of land within the plan, with an area of ​​more than 700 acres, have been identified for development, as well as areas outside the plan as well as unused houses, apartments, offices. The Public Employment Service (DYPA) will allocate the plots and after the contractor is selected after a tender, he will undertake the construction of the buildings based on the specifications provided for in the notice. The public body will retain ownership of the properties, while the contractor will receive in return the concession of exploitation until the costs are covered and on the condition that a percentage of the houses will be made available at a reduced rent to the beneficiaries of the social compensation program. From the beginning of 2026 until the end of the year, it is expected that 50% of the houses will gradually be leased on behalf of the State, at a low rent, to young people based on criteria, while there will be a special quota for those with three children and those with many children.