Housing Market: Door Opens to Rent Caps, New “My Home” Scheme and Special Golden Visa

Greece’s National Housing Strategy 2026–2035 introduces four major interventions aimed at increasing housing supply, expanding access to affordable mortgages, attracting targeted investment, and potentially regulating parts of the rental market.

A New Intervention in the Housing Market

With four targeted measures affecting rents, mortgage lending, investment incentives, and residential construction, the government is attempting to address one of the country’s most pressing economic and social challenges: the housing crisis.

The new National Housing Policy Strategy 2026–2035, now under public consultation, seeks to move beyond temporary subsidy programs and establish a long-term framework focused on expanding housing supply.

At the center of the strategy are four key initiatives that could significantly impact tenants, first-time homebuyers, developers, investors, and the broader real estate market.

1. National Rental Index and the Possibility of Rent Caps

The most widely discussed proposal is the creation of a National Housing and Rental Price Index.

For the first time, the state would gain access to comprehensive market data, including:

• Location
• Building age
• Construction quality
• Property condition
• Energy efficiency
• Actual rental prices

According to the strategy, this index could serve as the basis for targeted interventions in the rental market.

The proposal explicitly states:

“Particularly for low-quality or low-energy-efficiency housing units, the index could be used as a reference tool for determining maximum rental ranges or other forms of market regulation.”

In practical terms, this creates a framework for the possible introduction of rent caps on specific categories of residential properties, especially those that fail to meet quality or energy-performance standards.

2. A New “My Home” Program with Cheaper Mortgages

The second major reform involves transforming the successful “My Home” housing program into a more permanent financing mechanism.

Unlike previous schemes, the new model would not rely primarily on direct public subsidies or European funding.

Instead, it would include:

• Tax incentives for banks
• Reduced-interest mortgage loans
• Easier access to homeownership for young people and middle-income households

The philosophy changes substantially.

Rather than subsidizing borrowers directly, the government would provide tax benefits to financial institutions in exchange for offering more favorable mortgage terms.

The objective is to create a sustainable pathway to homeownership that does not depend on temporary funding sources such as the Recovery and Resilience Facility.

3. A New Golden Visa Linked to Long-Term Rentals

The third proposal seeks to reshape the role of Greece’s Golden Visa program.

Until now, the scheme primarily functioned as an investment channel for foreign buyers.

The new strategy proposes a specialized category of Golden Visa under which:

• Investors may acquire multiple properties
• Properties must be dedicated to long-term rental use
• Short-term rental activity, including Airbnb-type platforms, would be excluded
• Compliance would be monitored through a dedicated oversight mechanism

The goal is to redirect part of foreign investment demand toward increasing the stock of available housing for residents rather than fueling speculative activity.

Reduced VAT for Affordable and Social Housing

The fourth intervention targets the construction sector.

The strategy proposes a reduced VAT rate for the development of:

• Affordable housing
• Social housing
• Residential projects serving public housing objectives

The proposal takes advantage of European Union provisions allowing member states to apply lower VAT rates to projects with a social-policy purpose.

The aim is to encourage developers to invest in housing projects that serve middle- and lower-income households rather than focusing exclusively on premium market segments.

Why the Focus Is Shifting Toward Supply

The strategy is based on a central conclusion:

Greece’s housing crisis is not driven solely by demand—it is increasingly a supply problem.

Over recent years:

• Residential property prices have risen sharply
• Rental costs have increased significantly
• Available housing stock has tightened
• Access to affordable housing has become increasingly difficult, particularly for younger households

As a result, policymakers are placing greater emphasis on expanding supply through new construction, the activation of underutilized properties, and incentives designed to bring more homes into the long-term rental market.

The Big Challenge

The possibility of rent caps is likely to generate the strongest debate, as rent regulation has traditionally been viewed with caution by investors and property owners.

Yet the broader success of the strategy will ultimately depend on a different question:

Can these measures significantly increase housing supply?

Because as long as the supply of available homes remains constrained, upward pressure on both property prices

Source: pagenews.gr