Housing Crisis: Government Interventions to Boost Housing Supply

Critical weeks lie ahead in tackling Greece’s housing crisis, as the government launches interventions to increase the supply of residential properties. By Q1 2026, key measures will be implemented—including Social Counterpart (leveraging public real estate for low-rent social housing), regulations targeting vacant properties and short-term rentals, and initiatives to activate public property assets. At the top of the agenda is the Social Counterpart mechanism, which aims to convert state-owned buildings into affordable social housing and rental units. Two joint ministerial decisions are planned for Q1 2026: one assigning exclusive management of relevant properties to the Ministry of Social Cohesion and Family, and another establishing the core contractual framework for Social Counterpart agreements. Further steps include a Q2 ministerial decision on tenant eligibility, a joint decision on social rental terms and rent calculation, and the first official call for applications by year-end. To boost overall housing supply, the government will also double ENFIA tax on vacant residential properties owned by banks and NPL management firms—pushing them onto the market. A tax exemption for rental income will incentivize legal entities investing in construction or renovation of long-term rental housing. Short-term rental regulation is also advancing: legislative amendments will extend restrictions to Thessaloniki’s city center, remove transferred properties from the short-term rental registry, and introduce rent reimbursement schemes for educators, nurses, and doctors serving outside major urban centers—addressing regional and island rent pressures. Additionally, the Real Estate Acquisition and Re-Rental Agency is set to become operational in February.