The first samples of re-starting the housing faith will be seen by this year. Despite the large repayments of the 2005-2010 gold period, which remain higher than the disbursements of new housing loans, according to competent officials of the housing credit, new housing loans are expected this year at 1.85 billion euros from 1.3 billion in 2023. The increase in housing loans is a major objective for banks, but also a demand from the government. Prime Minister Kyriakos Mitsotakis, speaking last week at the Bloomberg event for Greek banks in Athens, called on banks to give more housing loans and get rid of the thousands of residential properties they have on their balance sheets. In this direction, the government will contribute with new projects from early 2025, in which banks also bet to increase housing lending. In particular: My Home II programme, with a total budget of EUR 2 billion, of which EUR 1 billion with funding from the Recovery Fund and EUR 1 billion from commercial banks. The interest rate will be reduced by 50% of the current commercial, as the amount financed by the Recovery Fund will be interest-free. Age and income criteria are expanding over my first home program. The programme will cover natural persons and couples aged 25 to 50 years, with an income of between 10,000 euros and 20,000 euros for the unmarried and 28,000 euros for the couple with an increase of 4,000 euros for each child. The program I upgrade my House for the energy improvement of old houses. It provides for the granting of a loan of up to 25,000 euros at zero interest rates, while the total budget of the programme is EUR 400 million (EUR 300 million with funding from the Recovery Fund and EUR 100 million from banks). In addition, the government will implement: Double the maximum subsidy of the programme I renovate – rent, from the amount of EUR 4,000 to EUR 8,000, which will cover 60% over 40%. The programme has a budget of EUR 50 million, namely EUR 25 million for 2024 and EUR 25 million for 2025. An increase in housing allowance from EUR 70 to EUR 125, depending on the income scale. Exemption for three years from income tax from real estate rents up to 120 sq.m., which will be leased by long term lease, while they were vacant or short term lease for at least three years. The estimated cost for 2025 is EUR 3 million and for the years 2026-2028 at EUR 13 million, each year. Prohibition of a new short-term lease during 2025 for apartments located in the first, second and third municipal district of Athens, due to the high percentage of apartments available for short-term rental. VAT charge of 13% and tax on short-term rental of real estate (airbnb type) to legal persons and natural persons with three or more leased apartments and while tightening up the definition of short-term lease, with a view to regulating the purchase of short-term leases and addressing the secondary negative effects on rent prices. Further tightening up the criteria for granting Golden Visa. The limit increased to 800,000 euros from 500,000 euros in Attica, Thessaloniki, Mykonos, Santorini and the islands with a population of more than 3,100, while in other regions the limit increased from 250,000 euros to 400,000 euros. Increase the climate-resistance charge for short-term leases, during the winter months from 0.5 euros to 2 euros per night, during the summer months from 1.5 euros to 8 euros per night. Extension for another year (until the end of 2025) of the suspension of VAT on new buildings, with a view to increasing available housing, at an annual cost of EUR 18 million. Public real estate use through tender procedures under the “Social Contribution” programme, with the costs of the contractor, which has the possibility of operating the property and at the same time the obligation to lease it.
Housing: What banks see about new loans – The entire government package
—