At the 3rd Real Estate Conference organized by Capital.gr and Forbes Greece, Deputy Prime Minister Kostis Hatzidakis underscored the government’s commitment to enhancing the construction sector and real estate market as a means to boost the housing supply—through the construction of new homes and the improvement of existing infrastructures.
To achieve this, five key interventions are underway, including reforms to social land-for-apartment exchanges to enhance their appeal and effectiveness. Additional tax measures and new initiatives will be influenced by the overall economic and budgetary landscape.
Mr. Hatzidakis remarked, “The recent government decision to return one rent to tenants and extend the 100% tax deduction for energy, functional, and aesthetic upgrades of buildings into 2025 reflects our continued focus on this issue. The Prime Minister’s forthcoming announcements at the Thessaloniki International Fair will reiterate our dedication to fiscal responsibility, reforms, and societal benefits—with planning, consistency, and realism.”
The ongoing and upcoming interventions include:
1. Reducing real estate taxes.
Recent measures include a 35% reduction in ENFIA (property tax), an additional 20% reduction for insured homes, a suspension of VAT and capital gains tax, and a three-year income tax exemption for closed homes being rented or converted from short-term to long-term leases. Moreover, tax deductions for building upgrades related to energy, functionality, and aesthetics have been increased.
2. Increasing housing supply.
Active programs like “Exoikonomo” and “Anakainizo – Noikiazo” (with subsidies increased from €4,000 to €8,000) and “Anavathmizo to Spiti mou” are aimed at this goal.
“We aspire to do more for both developmental and political reasons, but we must act within the country’s fiscal limits,” he emphasized.
3. Utilizing public real estate to boost housing supply.
Mr. Hatzidakis described the institutionalization of Social Land-for-Apartment Exchange as a key strategy, where unused public properties can be transformed into modern housing. At least 30% of these units will be offered to eligible individuals at affordable rents, with an option for rent-to-own. The Ministry is currently working on enhancements to this framework for legislative approval.
The proposed changes include:
- Permitting the sale of housing portions not designated for social use on the open market, facilitating quicker investment returns.
- Allowing the reconstruction of existing buildings, in addition to new constructions on vacant land.
- Establishing a central body for managing social housing and an electronic registry of projects and beneficiaries to improve transparency and align supply with demand.
4. Enhancing the regulatory framework through Local and Special Urban Plans.
“Recent decisions from the Council of State underscore the necessity for such a framework,” the Deputy Prime Minister noted.
“While I acknowledge the importance of modern urban planning, it’s vital to tackle the need for affordable housing, address demographic challenges, and revitalize rural areas. We must consider constitutional provisions for both environmental protection and family support.”
This will involve updates to the new Building Code and forthcoming legislation from the ministry responsible for construction within settlements, balancing environmental protection and promoting family and regional development.
5. Coordinating with relevant ministries on three initiatives:
- Establishing a permanent inter-ministerial housing committee that includes all relevant ministries, with discussions scheduled for the Cabinet tomorrow.
- Creating a dedicated digital platform for citizens to access all affordable housing policies and find suitable programs.
- Launching a housing policy observatory to monitor market prices and the absorption of government program funds monthly.
The Deputy Prime Minister reported a record €2 billion in Foreign Direct Investment in Real Estate for 2024, alongside renewed construction activity expected after legislative changes to the Building Code.
He countered myths that all investments in Greece are real estate-focused, noting that the sector’s share is 12 points below the EU average, and stressed that the current housing pressure is not solely due to property owners.
“While some distortions must be addressed, the primary issue is the inadequate supply, especially in high-demand regions,” he stated.
“We’re undertaking a multi-faceted approach to address the needs of all stakeholders—property owners, investors, builders, and renters. Our aim is to maintain balance: to foster development while ensuring social cohesion and promote construction activities without neglecting anyone. We are dedicated to creating a stable, investment-friendly housing environment, while offering substantial support to those with pressing housing needs. Through cooperation with the market and a commitment to planning and realism, we aspire to build a modern, robust real estate market that generates investment opportunities, enhances the quality of life for citizens, and secures a future for generations to come,” concluded Mr. Hatzidakis.
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