New plan to tackle housing crisis
Incentives and concessions on the table to bring 650,000 properties back on the market
In a bid to curb the sharp increase in sales prices and rents in recent years, the government is seeking to return a large number of closed properties across Greece to the market.
According to data from the Finance Ministry, over 650,000 properties in Greece are unoccupied. Of these, an estimated 150,000 are located in Attica and Thessaloniki. Naturally, a large number of the properties that seem vacant right now are secondary properties – like holiday homes that haven’t been used in years – or are abandoned.
Among the measures currently on the table are easement agreements that will allow tens of thousands of closed properties with outstanding planning concerns held by non-performing loan management businesses to come onto the market
An increase in the minimum investment required to obtain a Golden Visa is also being discussed as a price-control measure. Properties acquired in this manner will be subject to the restriction that they cannot be placed on the short-term rental market for some time.
At the same time, the tax authority will conduct cross-checks to determine which are vacant and which are being leased but without being declared.
The biggest obstacle lies with funds that have acquired properties through auctions. The majority of these properties face massive and probably insurmountable difficulties that can only be remedied through new laws. Banks and property management businesses have considerable stock, but according to market sources they are unable to access the market, as many struggle to issue electronic property ID cards and other relevant documents.
Approximately 2-3% of annual property sales are Golden Visa investments. According to surveys, Chinese buyers tend to use these homes for long-term leasing, while the Israelis and Lebanese seem to prefer short-term leasing. Sales have recently increased in regions where the minimum Golden Visa requirement of 250,000 euros has been maintained, such as Piraeus. The ministry intends to extend the cap in these regions to 500,000 euros. Basically, the cap for all major urban areas will be 500,000 euros.
Another plan under consideration is that real estate investments, at least in Attica and Thessaloniki, through the Golden Visa program, should not be used for short-term leasing, or should be otherwise discouraged.
