Social housing policy funding to increase
The government plans to make total funding of 1.5 billion euros available over the coming years as part of its goal to reactivate social housing.
“Our goal is to increase the supply of properties on the market in order to reduce high rental rates. For this purpose we will also use public real estate. We do not have to wait years until the complete registration of 100% of the properties controlled by the state is completed,” said National Economy Minister Kostis Hatzidakis, speaking at the 24th Prodexpo Real Estate Conference in Athens on Wednesday.
As examples, he cited the development of land through public-private partnerships (PPPs), under the institution of social rent, which will involve finding affordable housing for young people aged 25-39.
“There are plots of land belonging to DYPA [the Public Employment Service] that are located in Kifissia. Investors will keep a part of the property for their own use and the rest will go to people who meet social criteria. It will also be in the interest of private owners for the buildings to be of high quality,” Hatzidakis said.
The first phase of the program foresees that closed public buildings will be reconstructed as apartments so that they can be rented cheaply to young people or young couples.
Tenders will then be held within 2024 to select the contractors who will develop DYPA’s undeveloped plots of land, with the aim of completing the construction of the first homes by private developers in 2025.
DYPA will then publish the call for the selection of beneficiaries based on social criteria.
Another program set to launch in December will subsidize the renovation/repair of vacant apartments, provided that they are returned to the market through long-term rental for a period of at least three years. “Renovate-Rent” will have a budget of €50 million. The amount of the grant will be up to €10,000 and will cover 40% of the costs incurred.
