A new subsidy model linking home renovations to the availability of rental properties is being introduced through the new “Renovate” (“Anakainizo”) program, which for the first time also indirectly aims to curb rent increases.

According to announcements by Alternate Minister of National Economy and Finance Nikos Papathanasis, the first phase of the program will exclusively concern vacant properties, with owners required to rent them out for five years, while rents will remain fixed for the first three years.

The new program, with a total budget of €500 million, subsidizes renovations for homes built up to 1990, offering support of up to €300 per square meter for properties up to 120 sq.m. Subsidies may reach as high as 95% for specific beneficiary categories such as people with disabilities and single-parent families.

Unlike the traditional “Exoikonomo” energy-saving programs, the new “Renovate” changes philosophy, requiring only 20% of interventions to involve energy upgrades, while the remaining 80% may cover general renovation work such as electrical and plumbing systems, bathrooms, kitchens, flooring, and repairs.

The goal is to bring thousands of old and vacant apartments currently sitting unused back into the housing market.

Timeline and application process

The process will begin in late May to early June with the launch of an eligibility platform, similar to the “My Home 2” program, through which interested applicants will be able to check whether they meet participation criteria.

Those deemed eligible will then need to obtain an energy performance certificate and prepare the building identity documentation in order to submit a full application when the official application platform opens in early September.

According to the plan, the program will later expand to owner-occupied residences as well. However, priority is currently being given to increasing the supply of rental housing at a time when rising rents continue to put pressure on households.

Focus on functional renovations

The main pillars of the program indicate that the government aims to transform vacant and aging properties into immediately available homes, placing emphasis not only on energy efficiency but also on the functional upgrading of apartments.

For this reason, eligible expenses will include works that until now were not subsidized to such a large extent, such as:

• Full interior renovations
• Kitchen and bathroom replacement
• Electrical and plumbing installations
• Restoration works and repairs
• Flooring and painting
• General improvements making the property immediately habitable

At the same time, the program also includes limited energy-efficiency interventions such as window replacements, insulation, or energy-saving systems, though these will account for only 20% of the total renovation plan.

This approach aims to reduce both costs and bureaucracy, factors that often discouraged owners from participating in previous programs.

Mandatory rental and fixed rents

According to the announcements, the program concerns homes that remained vacant for extended periods and which, after renovation, must be placed on the rental market.

The obligation to lease the property for five years is considered a core condition for retaining the subsidy.

Particular interest has been generated by the provision requiring stable rents during the first three years, a measure directly linked to efforts to limit sharp rent increases.

Applicants will first need to complete the eligibility process, after which documents such as the energy performance certificate, building identity records, and technical property details will be required.

The government estimates that the program will mobilize a significant number of property owners who until now avoided renovations due to high costs or low returns on their properties.

Officials at the Ministry of Finance believe the new “Renovate” program can work complementarily with “My Home 2” and other housing initiatives totaling more than €6.5 billion, with the aim of increasing available housing stock and reducing pressure on both property prices and rents in recent years.