Prime Minister Kyriakos Mitsotakis announced measures to address the housing issue during his budget speech in Parliament.

These are six targeted measures aimed at increasing the supply of housing, complementing the programs already being implemented by the government and the interventions that have been announced as part of efforts to tackle the housing crisis.

The six measures:

1. A generous home renovation program — covering up to 90% of the cost — €400 million for upgrading old closed properties with subsidies up to €36,000. The income limit is €35,000 for a couple, with an increase of €5,000 for each child.
2. For 50,000 teachers, nurses, and doctors outside the urban centers of Attica and Thessaloniki, two annual rents will be reimbursed regardless of their income.
3. Local plans to upgrade municipal and state buildings in mountainous and island regions for housing public servants.
4. New restrictions on short-term rentals: current regulations are extended to the Thessaloniki city center. Additionally, in Athens and Thessaloniki, where short-term rentals are banned, when such a property is transferred, it will be automatically removed from the Short-Term Rental Property Registry.
5. A new incentive framework for private investments in affordable housing: construction companies will be able to build apartments or convert existing buildings exclusively for rental for at least 10 years. Rents will be tax-deductible, and the maximum rent will be centrally regulated.
6. Urban planning regulation by the Ministry of Environment and Energy (YPEN) for rapid conversion of existing properties into residential use. Abandoned or unfinished buildings will be classified as private investments with a tax deduction incentive.

Housing is one of the main priorities of the Budget, not only as a problem for young people but also as a sector that absorbs a large part of household incomes.

Watch Kyriakos Mitsotakis’ speech live.

“In coordination with the Ministry of Finance,” Mr. Mitsotakis also said, the regulation for borrowers with Swiss franc loans is being submitted. “We are closing another pending issue that has held hostage 50,000 borrowers with Swiss franc loans. Their obligations will be converted to euros with a fixed low interest rate, and a haircut will be provided.”

“The provision will come to Parliament soon, maybe the opposition will vote for something positive, instead of just complaining,” the Prime Minister said pointedly.

Mitsotakis also emphasized that the election of the Greek Minister of National Economy and Finance to the leadership of the Eurozone constitutes the best response to the gloomy criticism of the opposition, as he personally addressed the leader of PASOK, Nikos Androulakis.

He added that, ten years later, “the people resisted the lies and populism, managing to return from bankruptcy and stagnation to growth and to the heart of European decisions.”

Speaking specifically about the budget, he said it forecasts a growth rate of 2.4%, double that of the Eurozone, and includes:

• interventions amounting to €3 billion to support citizens’ incomes,
• the fastest reduction of public debt among OECD countries — for the first time below 140% of GDP,
• unemployment returning to pre-2008 levels,
• Inflation at 2.2% — wage increases will more than cover the losses from the cost of living,
• an investment growth rate of 10.2% higher than this year, the Public Investment Program (PIP) is increased by €2 billion, with a priority on full absorption of the Recovery and Resilience Facility (RRF), currently at 65% of the total, while the EU-27 average is at 43%.

All this, Mr. Mitsotakis stressed, comes without risking fiscal balance, with revenues and expenditures increasing while tax burdens decrease. Especially for the middle class, youth, and families, with wage increases exceeding inflation.

“The increase in the minimum wage is greater than the increase in inflation. I am not saying that many people do not struggle to make ends meet. Growth is qualitatively different; it is not based on borrowing. It is therefore no coincidence that, besides tourism, the share of industry and innovative research is also increasing. We are moving towards sectors with added value. Exports account for 40% of GDP. A revolution is happening in the innovative ecosystem of new businesses. Fifty percent of energy is produced from renewable energy sources. In 2024, for the first time, Greece was an energy exporter. No one disputes the huge significance of the vertical corridor that has been set in motion through major agreements in recent months. For those worried that this government supposedly has no relation to the new US administration,” he also emphasized.

“The entire philosophy of the budget is based on supporting disposable income as a real, effective bulwark against inflation. We do not celebrate, but we also do not zero out — especially amid geopolitical changes and economic shocks, which are leading many countries to austerity measures with cuts and new taxes.”

Measures to tackle the housing problem, including one that has not been leaked but will be targeted and tangible, Prime Minister Kyriakos Mitsotakis announced in his speech on the budget in Parliament.

Watch live the speech of Kyriakos Mitsotakis

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