Five bundles of interventions to reinforce the real estate and the increase in the residential stock, the Vice President of the Government presented, Kostis Hatzidakisspeaking today (27.5.2025) at the 3rd Real Estate conference organized by Capital.gr and Forbes Greece
Interventions implemented by the government in the real estate market include adjustments to the institution of social consideration to make it more attractive and effective, while further interventions in taxation or adoption of new initiatives will depend on the overall course of budget and the economy. “The recent government’s decision, Mr. Hatzidakis stressed, on the return of a rent to tenants and the decision to expand and in 2025 of the tax deduction of 100% for energy, operational and aesthetic building costs are evidence that the government continues to raise the issue.”
“In this context, the Prime Minister’s announcements at the TIF will confirm our commitment to continue on the path of budgetary responsibility, reforms and returning benefits to society – with plan, consistency and realism in the fall will confirm our commitment to society – with consistency and realism.”
Interventions already implemented or launched next time are:
1. Reduction of taxation in real estate. ENFIA declines have already been implemented by 35% and an additional 20% for insured houses, VAT suspension and surplus tax, the abolition of 3 years of income tax for closed houses, or converted from short -term to long -term leasing, increased tax deduction and tax deduction.
2. Increase roofing. In this regard, the programs “save”, “renovate – rent”, in which the subsidy has doubled from 4,000 to 8,000 euros, “upgrade my home”. “We would like to do more. And for development reasons – but also for political reasons. But we have to move responsibly, without exceeding the country’s fiscal strengths, “he said.
3. Utilizing public real estate, aimed again at increasing real estate supply. “The most emblematic intervention,” said Mr. Hatzidakis, is the institutionalization of social consideration. Through it, public real estate that today remains unused can be used for the construction of modern houses. With one of them – at least 30% – to be offered to beneficiaries with affordable rent and social criteria. While redemption is also given. The competent ministry is working and will soon be voted on by the existing framework to make it more attractive and effective. “
The changes promoted foresee:
- Ability to sell the percentage of social housing houses for sale – so that the investment can be more immediately depreciated.
- Possibility of rebuilding existing buildings, in addition to building new plots.
- Establishment of a central body for social housing management and electronic registry of works and beneficiaries – to enhance transparency and effective needs.
4. Improvement of a regulatory framework with the preparation of local and special planning plans. “The issues created recently with the CoE decisions highlight the need for such a context,” the deputy prime minister said. I absolutely respect the need for modern urban rules. I also know that property itself can be discredited if there are anarchic residential developments. On the other hand, however, I do not have the right to ignore the need for cheap home, treatment of demographic, rural rejuvenation. But also the constitutional forecasts of protecting ownership and encouragement of regional development. ” In this context, the arrangement for the new building regulation is moving, followed by the Ministry’s responsible intervention for the construction of the settlements. Which “will take into account the provisions of the Constitution for the protection of the environment but also the constitutional regulations aimed at protecting the family and supporting decentralization”.
5. Coordination of the relevant ministries with three actions:
- Establishment of a permanent inter -ministerial committee for the mortgage, with the participation of all relevant Ministries. The discussion will take place tomorrow at the cabinet.
- Creation of a special digital platform where citizens will be able to get to know all the affordable roof policies and easily find any program that fits their profile.
- Establishment of a housing policy for regular, monthly monitoring of both market prices and the absorption of government programs.
The deputy prime minister underlined the new historic record in 2024 in direct foreign investment in the Real Estate industry with an influx of 2 billion euros. But also the increase in building activity, which is expected to come back after the legislative intervention for the NOK. He described as a myth that the only investments made in Greece relate to real estate as in fact the share of investment in this sector in our country is 12 points lower than the EU. The second myth, he said, is that the housing pressure that many households have been experiencing in recent years.
“Of course, he stressed, there are some distortions that require treatment. But the main cause is supply deficiency, especially in high demand areas. ” “We do, concluded Mr. Hatzidakis, a multilevel effort that responds to the needs of all those involved: owners, investors, manufacturers, and – of course – buyers and tenants. Our goal is to keep balance. To support growth, but also to ensure social cohesion. To encourage building activity, but without leaving anyone behind. We are creating a stable and friendly home investment environment. We strengthen building activity by giving incentives and at the same time providing substantial support, the largest we can, to citizens who face increased housing needs. We continue with a spirit of cooperation with the market, with plan and realism. For a modern and powerful real estate market that will create opportunities for investment, quality of life for citizens and prospects for future generations. “