In an interview on Direct with Giorgos Evgenidis, the Minister of Social Cohesion and Family, Domna Michailidou, focuses on the housing issue, which she describes as the biggest problem in people’s daily lives. She stresses that rent caps have not produced results in any country and that the government is moving forward with a combined plan to boost both supply and demand, aiming to launch the construction of 1,500 social housing units by the end of 2027.

Michailidou highlights that housing is the most critical challenge for households, noting that the government is shaping a multilayered intervention plan.

She explains that Greece remains a country with high home-ownership rates, which offers some protection, but “for everyone else there is a problem, as rent prices have become unbearable.” The total housing reform package amounts to €6.8 billion and includes 43 different policies built on two pillars: supporting demand and increasing supply.

Among the measures to support households, she mentions rent rebates and the programs “My Home 1 & 2,” which, she notes, give about 30,000 families the opportunity to acquire their own home. Income criteria have also been broadened to support middle-class families.

She makes special reference to the issue of rent caps, emphasizing that there are no international examples of success. “We haven’t seen anywhere that rent caps truly worked. In Spain there were no results, and in Paris it backfired because when you set a ceiling, no one ever wants to leave their apartment,” she says, adding that New York remains a case that still needs to be evaluated. She also raises the issue of Greece’s shadow economy: “There are many undeclared rentals; so if we imposed a ceiling, would we just be wasting our time?”

The minister acknowledges that the challenges are significant and says, “We are in a tough position and racking our brains to find solutions.” Within this framework, the government aims primarily to increase the housing stock, using inactive state-owned properties and building new social housing units. The effort also includes consolidating scattered properties from various ministries through an inter-ministerial committee. “It’s not easy for every minister to hand over their properties, and they won’t give us the prime ones,” she notes, clarifying that plots from the Ministries of Labor and Finance have already been identified.

Initially, 10 to 12 properties will start being utilized in Attica, Patras, Serres, and Ilia, while “in the coming years we will bring 1,500 apartments onto the market. By the end of 2027 construction will have begun on these 1,500 units.” In her interview she also explained how these apartments will be allocated to citizens.

Inactive military camps are also being considered as sites for new housing developments. “We looked at which inactive camps could serve housing needs. In Athens and Thessaloniki, 30% will cover military housing needs and 70% will go to the public,” she says, adding that this is a major pilot project involving the creation of three new neighborhoods with shared spaces and infrastructure.