Unlocking Dormant Properties
The Greek government is launching a three-pronged strategy to address the housing shortage, starting with dormant inheritances.
Currently, there are approximately 6,500 unresolved cases — 4,500 dormant estates and 2,000 under liquidation. Hundreds of homes in Athens, Thessaloniki, and across the country remain closed, depreciating, and off the market.
The new legislation, to be introduced this fall, will establish a digital platform connecting all dormant estates with the National Citizen Registry, ensuring swift notification when a property passes to the state. Small estates (up to €20,000) will be processed locally, larger estates will involve lawyers and accountants, and properties above €1 million will be audited by external firms.
Properties acquired by the state will be immediately repurposed for housing, providing relief to thousands of citizens.
Banks and Servicers: Releasing Idle Stock
Thousands of homes remain in the hands of banks and debt servicers, often left unlisted to protect market prices. The government plans to release approximately 5,000 units in the coming months, targeting high-demand cities like Athens and Thessaloniki.
“This move aims to increase supply, stabilize rents, and provide affordable options for young professionals and students,” officials note.
Incentivizing Private Owners
Approximately 600,000 private homes remain vacant across Greece, either due to poor condition or owners’ reluctance stemming from high taxation and fear of non-payment.
The government proposes:
- Tax relief and new intermediate income brackets for property rental income.
- Mandatory bank transfers for all rents from January 2026, enhancing transparency and reducing tax evasion.
- Penalties for non-compliance: owners lose a 5% tax deduction, tenants forfeit rent returns or housing benefits.
By making rental investment more attractive, the state hopes to unlock thousands of otherwise idle homes.
Social Housing and Subsidy Programs
The government is also expanding social housing initiatives, channeling public and institutional properties to vulnerable populations.
- The “Spiti Mou II” program approved 8,092 applications by June, with a 50.1% absorption rate, average loan €120,000, and average home size 89 sq.m.
- Programs like “Anakainizo – Noikiazō” enjoy almost 100% uptake, offering grants up to €13,500.
- In contrast, “Anavathmizō to Spiti Mou” with €400 million budget remains largely unused, receiving only 2,670 applications.
This clearly shows citizens prefer direct cash incentives over long-term loans.
Market Impact and Outlook
With thousands of dormant, bank-owned, and private vacant homes set to hit the market, Greece is executing one of the most aggressive housing supply shocks in decades.
The government strategy seeks to:
- Increase housing availability immediately
- Stabilize prices amid rising demand
- Provide targeted relief to young citizens and vulnerable groups
If successfully implemented, this could transform Greece’s housing landscape, offering a model for rapid market intervention while balancing fiscal and social objectives.
Source: pagenews.gr