Thessaly Region: Collaboration with the European Development Bank to Solve Housing Issues

The Thessaly region aims to address housing problems in urban centers and the Sporades islands through a collaboration with the Council of Europe Development Bank, which will support the initiative with a loan. This dynamic system is expected to drive significant economic transformation in the Thessaly region by gradually developing between 500 to 1,000 homes, creating an affordable housing environment for young couples, students, seasonal workers, and economically vulnerable citizens who cannot afford high rents. The average rent will be set at €275. Rents will range from €250 for 40 sqm apartments to €300 for 80 sqm units. Regional Governor Dimitris Kouretas announced the plan today at the Regional Council, emphasizing the region’s commitment to solving critical housing issues faced by families, students, workers, new couples, seasonal workers, and public employees moving to the islands. The bank, located in Paris, has excellent credit ratings and will provide a zero-interest loan to the Thessaly region. The project aims to promote social cohesion by providing housing solutions. Governor Kouretas stated that financing will span 25 years, with loans of €5.7 million for every 100 homes, targeting the construction of 500 to 1,000 units. Beneficiaries will pay half the market rent based on square meters, with no future increases. The average home size will be 60 sqm, costing €900 per sqm to construct. Municipalities will provide the land, and the loan will be fully self-financed through tenant payments without burdening the national budget. Priority areas include tourist-heavy island regions suffering from affordable housing shortages, urban areas lacking student housing with high rental costs, and mountainous regions experiencing population decline. The project features energy-efficient category A homes with smart technologies and transparent beneficiary selection mechanisms. Fully self-funded, it aims to reduce housing costs, increase populations in mountainous areas, and decrease energy poverty.