The sharp increase in rental prices seems to have already absorbed the government’s latest efforts to solve the housing problem.
Finding affordable housing in urban centers, especially in Attica, has become almost impossible for many, particularly for young couples and workers. High rental prices, combined with limited incomes, make housing a heavy burden, leading many to either cohabitate with friends or relatives or move to more remote areas, far from their jobs and social circles.
The average rental price in Attica now reaches €12 per square meter, while in Thessaloniki it stands at €8.5. These increases have pushed 30% of households living in rented homes to the edge of their financial capacity, causing widespread concern.
Statistics confirm the escalation of prices: nationwide, the average rental price in September 2023 was €10 per square meter, marking a 6.61% increase compared to the previous year. In urban centers, the situation is even more challenging, with prices reaching €11.97 in Attica. In island areas and popular tourist destinations, prices are higher. On the other hand, lower prices are recorded in regions such as Central Greece (€6.30/sq.m.).
Attica as the “Red Zone”
Attica is at the heart of the rental crisis, with prices reaching or exceeding €11.5 per square meter, even in the city center. In the northern and southern suburbs, rental prices are even higher, reaching up to €20.38/sq.m. in Vouliagmeni. In neighborhoods like Kolonaki (€18.05/sq.m.) and Palaio Psychiko (€15.8/sq.m.), rents have soared, making housing difficult to find, especially for younger couples and middle-income households.
The Measures in the New Budget
The 2025 budget recognizes the intensified housing crisis and incorporates measures to address it.
The key interventions include:
- “My House II” Program: It provides €2 billion in subsidized loans, with reduced interest rates of up to 50% for young people aged 25-50, with income criteria that cover more households.
- Tax Relief: Income from renting properties up to 120 sq.m., which were vacant or offered for short-term rentals, will be exempt from tax for three years.
- Increase in Housing Allowance: The allowance increases from €70 to €125, with additional increments for each child.
- Restriction on Short-Term Rentals: In central Athens, where the pressure is greatest, new short-term rentals will be banned for 2025.
Despite these efforts to tackle the housing crisis, the challenge remains significant, especially as demand for affordable homes continues to rise while supply remains limited.
