The government’s ambitious plan to tackle the urgent housing issue draws on the successful “antiparochi” (property exchange) model, which helped solve the housing crisis in major urban centers in the 1960s.

The relevant draft law, prepared by the Prime Minister’s Office (led by Kostis Hatzidakis and Akis Skertsos) and the Ministry of Social Cohesion and Family (led by Domna Michailidou), is expected to be submitted to Parliament in the coming days. Its aim is to convert idle public real estate into modern housing for thousands of households by utilizing public assets without imposing a direct burden on the state budget.

A New Type of Public-Private Partnership

As revealed by Proto Thema, the draft law introduces a new form of cooperation between the public and private sectors. The Greek state will provide properties—either for the construction of new modern buildings or for the renovation of existing ones—on the strict condition that at least 30% of the resulting homes are offered as social housing to citizens who meet social and economic criteria. This is expected to both attract necessary investment interest and create a new model of social housing that avoids “ghettoization” by integrating into residential areas as part of modern, multi-use buildings.

Affordable Rent with Option to Purchase

According to the draft law, social housing will be offered at affordable rents, with tenants having the option to buy the property after ten years of consistent leasing—a “rent to own” model as provided in Article 5B:

“…Leasing contracts may be concluded with an option to purchase the property… after at least ten years from the initial lease agreement…”

The selection of eligible beneficiaries will be managed by OPEKA (Organization of Welfare Benefits and Social Solidarity) based on social and income criteria defined by ministerial decision. Once included in the program, beneficiaries will no longer receive a housing allowance they may currently be getting.

Focus on Families with Children

“Beyond economic vulnerability criteria, we’re considering ways to prioritize and support families with children through this program,” Minister Michailidou told Proto Thema. “With ‘My Home I’ we focused on young couples; with ‘My Home II’ we broadened the age range to 50. Now we want to support families with children to provide them with security if they want to expand their family,” she added.

She clarified that the selection process will be centralized through a dedicated digital platform that will track all applications and processes. Developers will have no role in the selection of tenants, even if they eventually manage the buildings, a possibility foreseen by the draft law.

Rent Cap and Market Conditions

Rent levels for social housing will be determined on a case-by-case basis depending on the objective value of the property and other factors. According to reliable sources at Proto Thema, the government’s intention is for the rent not to exceed 30% of the average salary.

“This measure addresses the supply side of the housing problem and complements previous initiatives focused on demand, like ‘My Home I’ and ‘My Home II,’” said Minister Michailidou. “It contributes in three ways: first, by increasing the supply of available housing; second, by ensuring that at least 30% is allocated at social rent; and third, by utilizing idle public assets—this being a critical factor,” she added. “It will especially help in areas like Attica, Thessaloniki, and other urban centers with acute housing challenges.”

The “Key”

The “key” to the success of the measure is, above all, the significant attraction of investors. The government estimates that this measure lays the groundwork for creating a new business sector—modeled after similar approaches in several European countries—that will draw substantial interest.

“The new provision offers greater ease and flexibility within the framework of social antiparochi (property exchange), making it more attractive to private investors and developers,” said Minister of State Akis Skertsos to Proto Thema.

Skertsos and Michailidou Lead Coordination Committee

Skertsos, together with Minister Domna Michailidou, chairs the new inter-ministerial coordination He, together with Ms. Michailidou, undertook the presidency of the new governmental coordination committee for addressing the Housing issue. Participating in it are also the Minister of Finance Kyriakos Pierrakakis, the Minister of Education Sofia Zacharaki, the Minister of Defense Nikos Dendias, the Minister of Health Adonis Georgiadis, the Minister of Digital Governance Dimitris Papastergiou, the Minister of Infrastructure Christos Dimas, and the Minister of Labor Niki Kerameos.

Akis Skertsos

“What is missing today in Greece is a market of more long-term investors-developers that exist in many other European countries and who consider social-affordable housing as a special product, which clearly has smaller profit margins, but it has a secure long-term return,” Mr. Skertsos continues.

“It is a fair deal for the State to contribute the land or the property, if already built, and for them to contribute the money for construction. And then depending on the valuation that will be done ad hoc for each property, an agreement will be formed regarding the allocation of ownership between the State or the municipality—because municipalities also participate in the plan—and the private developer. From there on, there is also the path of taking over the management of the entire building.”

Landmark Properties First

The first list of properties ready for rapid development under the new scheme is already prepared. Leading the list is:

• The former industrial complex of CHROPEI, owned by EOF, located at 62 Piraeus Avenue in Piraeus. It spans 17,893 sq.m., includes listed buildings, and has immediate redevelopment potential. The draft law includes a specific provision for transferring the property to the state to expedite the creation of “social housing.”

Other publicly owned properties in the first group for utilization include:

• Two EFKA-owned plots in Argyroupoli, located on Kyprou Avenue, with a total area of 2,375 sq.m.
• The former Anatolia factory in Nea Ionia, with 18,000 sq.m. of buildings, owned by ETAD.
• The historic YFANET site in Toumba, Thessaloniki, covering 19,500 sq.m., currently under occupation.

Also included in this fast-track category are:

• Various additional properties in major urban centers and beyond.
• 378 plots cataloged across Greece by the Secretariat of Public Property at the Ministry of Finance, with detailed mapping by KPMG.

Digital monitoring

In any case, for greater transparency of procedures and effective matching of needs for social housing, the establishment of a central management body for social housing and an electronic register of projects and beneficiaries is foreseen. In this context, the Ministry of Social Cohesion will establish an electronic register where tenders, the housing units granted, the beneficiaries, and the progress of the projects will be recorded.

At the same time, a housing policy observatory is being created to monitor the market, resource absorption, and geographical distribution.

Affordable housing within the city

According to the government, social housing in this new framework will not be built isolated from the rest of the urban fabric, nor in downgraded areas. On the contrary, it will be part of multifunctional buildings, subject to rules of maintenance, upgrading, and management, and will maintain energy and aesthetic quality.

“What interests us is to have mixed-use environments where there will be cohabitation, coexistence of owners, tenants, etc., as well as citizens who are deemed eligible for such a policy. And this presupposes that you build modern buildings, modern constructions with good maintenance, with long-term management and maintenance contracts, and that’s why I say it also requires a different mindset from the market’s side, which will enter this process with a long-term investment plan,” comments Mr. Skertsos.

Application also in universities

He estimates that this model can also function in the case of universities, where student housing is also a major issue, calling on university administrations to identify spaces from their real estate assets.

“Now, with the increase in competition that will result from the non-state universities, public universities will have one more reason to become more attractive and to offer more opportunities and options to students, who will be asked to choose between the convenience of attending a non-state university in their city or a public one that will certainly be free, but must also offer something more regarding the housing issue and for students. So, university rectors must also mobilize and utilize their own inactive property,” he notes.

The problem and the measures so far

The housing crisis in Greece is not an abstract concept. It is a daily reality that pressures households, affects the quality of life, and limits the prospects of young people. It is a multi-level problem that does not concern only the most vulnerable, but increasingly affects the low and middle-income groups, workers, young couples, and those seeking decent housing in the cities.