The Greek government is activating a comprehensive plan to turn idle and unused properties into affordable housing, placing clear emphasis on increasing the supply of rental homes. The strategy includes a special support program for tenants, incentives for long-term leasing, and stricter restrictions on short-term rentals such as Airbnb.

The initiative, announced by Prime Minister Kyriakos Mitsotakis and designed by the Government Committee on Housing Policy, is coordinated by Minister of State Akis Skertsos and Minister of Social Cohesion and Family Domna Michailidou. It brings together the Ministries of Finance, Labour, Interior, Environment and Energy, Education, Defence, and Development under a single operational framework.

The overall housing strategy amounts to €7 billion, targets 1.6 million beneficiaries, and will be implemented through 2027.

Unlocking housing where none existed

The government’s goal is to create homes where, until now, there were only abandoned shells: warehouses, closed shops, unused offices, former industrial spaces, never-operational tourist properties, and forgotten buildings sitting idle in developers’ inventories.

These properties will be able to change use through fast-track procedures, be completed or renovated, and re-enter the market as housing with affordable rents. The plan seeks to mobilize a “hidden housing reserve” that remained outside the market due to lack of incentives, funding, or regulatory flexibility.

The experience of recent years has shown that construction does not keep pace with demand, while a large stock of real estate remains unused — half-finished from the crisis years, obsolete due to economic shifts, or locked into non-viable uses. The government aims to convert this inertia into housing supply through coordinated policy tools.

Six pillars of the housing mechanism

1. Fast-track conversion from warehouse or shop to residence

A horizontal urban-planning reform will allow existing properties — built or unbuilt — to be converted into housing even if they currently have non-residential use under zoning plans or presidential decrees.

Eligible properties include offices, shops, warehouses, workshops, industrial spaces, and abandoned or never-operational tourist accommodations.

This reform removes the bureaucratic barriers that previously discouraged owners from changing use. Properties that were locked out of viable exploitation can now enter the rental market. Construction companies will also be able to unlock stock that could not previously be converted to residential use.

2. Up to €36,000 to reopen closed homes

A new renovation program titled “Renovation of Older Homes with Mild Energy Interventions, expected to launch in 2026, will be funded initially with €400 million from the 2021–2027 EU Structural Funds, with potential regional top-ups.

The program applies nationwide to both vacant and occupied homes and targets private individual owners. Renovation and energy upgrading are mandatory and must be combined.

• Subsidy: up to 80% of the total cost
• Ceiling: €300 per sq.m., maximum €36,000 per property
• Bonuses:
  • +5% for families with three or more children and persons with disabilities
  • +5% for mountainous or island areas
  • The maximum subsidy may reach 90%

Eighty percent of the budget is reserved for closed homes returning to the market; 20% for owner-occupied residences.

Closed homes are defined as properties without electricity for over two years or declared as vacant to tax authorities for at least two years.

Eligible properties must:

• Have been legally constructed
• Hold a building permit issued before 31/12/1990
• Not exceed 120 sq.m.

Owners must either occupy the renovated property or lease it under long-term rental contracts for at least five years. Short-term rentals (Airbnb-type) are prohibited for five years.

3. Ten-year tax incentive for affordable rentals

A special Affordable Housing Program will allow developers to build new homes or convert existing non-residential properties exclusively for long-term leasing (minimum 10 years) at regulated rent levels.

Rental income from these properties will be tax-deductible for corporate entities, while maximum rent levels will be set by the Ministry of Social Cohesion and Family.

This creates a new housing production model focused on rental income rather than immediate sale, offering developers a viable alternative investment strategy.

Additionally, owners who in 2026 shift properties (up to 120 sq.m.) from vacancy or short-term rental into long-term leasing will be exempt from income tax on rental income for three years.

4. Municipal properties back into use

Municipalities and regions will activate unused public buildings — particularly in island and mountainous areas where housing shortages for public employees are acute.

These properties will be renovated and leased long-term to teachers, doctors, nurses, police officers, firefighters, and other public-sector workers without local housing.

Funding will come from regional programs, with municipalities able to allocate up to 1.5% of their total budget for such renovations.

5. Two rents refunded for regional public servants

Since November, 80% of tenants meeting income and asset criteria receive an annual rent refund. From 2026, teachers, doctors, and nurses working outside Attica and Thessaloniki will receive an additional rent refund, regardless of income, bringing support to two rents per year.

For 2026, the additional amount will be paid retroactively in the first quarter.

6. Further restrictions on Airbnb in Athens and Thessaloniki

Restrictions on new short-term rentals already in place in central Athens are extended to Thessaloniki’s First Municipal District from March 1, 2026, through year-end, with possible extension.

Key provision:
When a property located in a restricted zone is transferred, its Airbnb registration is automatically cancelled and cannot be reissued while restrictions apply. The license does not follow the property.

This effectively dismantles a secondary market where Airbnb “rights” were treated as transferable assets.

A comprehensive housing strategy

The six measures form part of a broader housing framework exceeding €7 billion, covering over 1.6 million people through 2027. The government’s strategic shift is clear: increasing supply by activating idle assets, stabilizing rents, and promoting long-term leasing.

Additional initiatives include:

• Housing programs for Armed Forces personnel
• Modernization of inheritance law to unlock properties stuck in co-ownership disputes
• Creation of a Tenant Creditworthiness Registry (pilot phase expected this year)

Measures already in place

Previous and ongoing interventions include:

• Average 34% reduction in ENFIA property tax
• Abolition of gift tax up to €800,000
• VAT suspension on new buildings
• “My Home,” “Renovate–Rent,” and youth housing programs
• Increased student housing allowance
• Stricter rules on Airbnb and Golden Visa schemes

New additions include:

• Expansion of tax exemptions for vacant properties
• Gradual ENFIA reduction in small settlements
• Extension of VAT suspension
• Introduction of social land-for-development schemes
• Reduced rental income tax with an intermediate 25% rate