The government is preparing to press the button for rapid creation of new housing without pouring new concrete, through an urban planning regulation that is set to reshape the real estate market. According to reports, the way is opening for the fast conversion of existing properties currently designated for non-residential use—such as offices, shops, old hotels, and commercial or tourist buildings—into residences, even in cases where existing Presidential Decrees or General Urban Plans do not allow it.

The intervention aims at the immediate utilization of thousands of abandoned, unfinished, or vacant properties scattered across the urban fabric, particularly in Athens, Piraeus, Thessaloniki, and tourist areas, where housing pressure has reached critical levels. The key feature is process simplification: the change of use will occur under clear technical conditions and limited administrative oversight, without lengthy plan revisions or complex approvals that currently deter private investors.

A particularly interesting aspect is the tax dimension of the plan. Companies that participate and provide the newly converted residences on the market at affordable rents for at least ten years will receive an income tax deduction incentive. The goal is to direct the new housing stock toward long-term rentals rather than short-term exploitation.

The measure is also designed to “tie in” with a broader housing intervention package extended into 2026. Specifically, the VAT suspension for new buildings will be extended for another year, until the end of 2026, aiming to increase the supply of homes, with an estimated annual cost of €18 million. At the same time, the income tax reduction for building upgrade expenses is extended through 2026. This complementary measure supports property conversions and is estimated to cost around €5 million annually, encouraging renovations and the reintroduction of properties to the market.