Strengthening the construction sector and the real estate market with the goal of increasing the housing stock—by building new homes as well as upgrading the existing building infrastructure—is a key priority of the government, emphasized Deputy Prime Minister Kostis Hatzidakis today at the 3rd Real Estate Conference organized by Capital.gr and Forbes Greece.

Within this framework, five sets of interventions are being implemented, including adjustments to the institution of social land-for-apartment exchanges to make it more attractive and effective, while further tax interventions or the adoption of new initiatives will depend on the overall course of the budget and economy.

“The recent government decision,” Mr. Hatzidakis noted, “to return one rent to tenants, as well as the decision to extend into 2025 the 100% tax deduction for expenses related to energy, functional, and aesthetic upgrades of buildings, are elements that show the government continues to prioritize this issue. In this context, the Prime Minister’s announcements at the Thessaloniki International Fair this fall will confirm our commitment to continue down the path of fiscal responsibility, reforms, and returning benefits to society—with planning, consistency, and realism.”

The interventions already being implemented or planned for the near future are:

1. Reduction of real estate taxation.
Already implemented are: a 35% reduction in ENFIA (property tax), an additional 20% for insured homes, suspension of VAT and capital gains tax, elimination for three years of income tax on closed homes that are rented out or converted from short-term to long-term leases, and an increase in tax deductions for energy, functional, and aesthetic building upgrades.

2. Increase in housing supply.
To this end, programs such as “Exoikonomo”, “Anakainizo – Noikiazo” (where the subsidy doubled from €4,000 to €8,000), and “Anavathmizo to Spiti mou” are active.
“We would like to do more. Both for developmental and political reasons. However, we must act responsibly, without exceeding the country’s fiscal limits,” he stated.

3. Utilization of public real estate, again aiming to increase the supply of housing.
“The most emblematic intervention,” said Mr. Hatzidakis, “is the institutionalization of Social Land-for-Apartment Exchange. Through this, public properties currently unused can be developed into modern housing. A portion of these—at least 30%—will be offered to eligible individuals with affordable rent and based on social criteria. There is also an option for purchase (rent to own). The competent Ministry is processing and will soon bring improvements to the current framework for a vote, to make it more attractive and effective.”

The promoted changes include:

• The ability to sell the portion of housing not used for social purposes on the open market—to enable quicker return on investment.
• The possibility of reconstructing existing buildings, beyond just building on vacant lots.
• The creation of a central management body for social housing and an electronic registry of projects and beneficiaries—to enhance transparency and better match needs.

4. Improvement of regulatory framework through the drafting of Local and Special Urban Plans.
“The issues recently raised by the Council of State’s decisions highlight the need for such a framework,” noted the Deputy Prime Minister.
“I fully respect the need for modern urban planning rules. I also know that property value can decline if there is chaotic development. However, I cannot ignore the need for affordable housing, addressing demographic challenges, and revitalizing the countryside. Alongside constitutional provisions for environmental protection, we must also consider constitutional support for families and regional development.”

This includes regulations in the new Building Code and upcoming legislation from the responsible ministry for construction within settlements. It “will consider constitutional provisions for environmental protection but also support for family and decentralization.”

5. Coordination of relevant ministries with three actions:

• Establishment of a permanent inter-ministerial committee on housing, involving all relevant ministries. The discussion will take place tomorrow in the Cabinet.
• Creation of a special digital platform where citizens can access all affordable housing policies and easily find the programs matching their profile.
• Establishment of a housing policy observatory for regular, monthly monitoring of market prices and government program fund absorption.

The Deputy Prime Minister highlighted the record in 2024 for Foreign Direct Investment in Real Estate, reaching €2 billion, and the rise in construction activity expected to resume following legislative intervention on the Building Code.

He described as myths both the view that all investments in Greece are real estate-focused—stating that the sector’s share is 12 points lower than the EU average—and the idea that current housing pressure is solely the fault of property owners.
“Certainly,” he said, “some distortions need to be addressed. But the main reason is the insufficient supply, especially in high-demand areas.”

“We are making a multi-level effort that addresses the needs of all stakeholders: property owners, investors, builders, and of course, buyers and renters. Our goal is to maintain balance. To support development while ensuring social cohesion. To encourage construction activity without leaving anyone behind. We are creating a stable and investment-friendly housing environment. We are boosting building activity by offering incentives while providing substantial support—the greatest possible—to citizens with high housing needs. We continue with a spirit of cooperation with the market, with planning and realism. For a modern, strong real estate market that creates investment opportunities, quality of life for citizens, and prospects for future generations,” concluded Mr. Hatzidakis.