Specifically reference to the problem housing In Greece today (1.6.25) the leading German financial newspaper Handelsblatt.
Indeed, Handelsblatt not only describes this problem (ie housing) but estimates that this is so acute that it threatens political stability in the country.
This State notes that “Greece, once candidate for bankruptcy, is now receiving significant recognition. In its spring report, the European Commission praises the success of the Athens government in consolidating public finances and in reducing debt. Investment Bank Morgan Stanley also provides for a strong increase in the Greek gross domestic product (GDP) by 2.2%.
However, Bank analysts also see a threat to the country’s economic growth: the lack of housing. This leads to an increase in rents, thereby leading inflation, reducing the disposable income and reducing the already negative savings rate. “
Handelsblatt stresses that “in a study by Greek Alpha Bank on the home market, 54% of respondents said it was” impossible “for them to buy their own home. 68% describe rents as “inaccessible”.
“The lack of housing attracts support for Greek populists”
“The lack of housing not only has financial implications. It also begins to destabilize the political system. According to polls, support for the left and right populist parties is increasing sharply. The government of conservative Prime Minister Kyriakos Mitsotakis, who has been in power since 2019, is under pressure, “according to the German newspaper.
Handelsblatt explains that “according to calculations from the Central Bank of Greece, housing prices increased on average 72.7% at national level between 2017 and the end of 2024. In the capital of Attica, the rate reached 92%. Only in the last two years, housing prices have increased by 22.6%. In the first quarter of 2025, prices rose by 8.8% compared to the previous year.
The Golden Visa program has been a factor that has been affecting prices in recent years. It promises rich foreigners outside the EU residence permit when buying real estate. “
‘Lack of bid causes raising rents’
“Rents are increasing along with real estate prices. They have almost doubled on average throughout the country since 2017. In March 2025, rents in Greece were 10.5% higher than the previous year – four times the inflation rate. According to Eurostat’s calculations, private households in Greece spend an average of 35.2% of their residence income, more than any other EU country. The average for the 27 EU Member States is 19.7%, “the same report said.
Handelsblatt stresses that “the reason for raising real estate prices and high rents is the lack of houses. According to a study by Piraeus Bank, Greece lacks 212,000 apartments. This is mainly a late consequence of the 2010 public debt crisis, which plunged Greece into the deeper and longer recession in post -war history.
Price prices were reduced by average by 40% and the construction activity declined significantly. According to the ELSTAT Statistical Service, 304,000 new apartments were completed in the Attica capital between 2001 and 2010. From 2011 to 2020, the number was only 48,600.
“Short -term leases and empty houses further reduce the offer”
Short -term leases are another cause of the lack of roof. More and more real estate owners are renting their apartments to tourists on a daily or weekly basis. According to the Insete Tourism Research Institute, 232,196 apartments with 1.02 million beds were rented for short -term leases last summer.
Another problem is the high percentage of vacant houses. In Attica alone, 526,154 apartments are empty, one quarter of the total reserve reserve. These are mainly older buildings that are not immediately renting because of their bad situation. “
‘Lack of housing becomes a political problem’
The same source states that “according to calculations from the Spitogatos real estate gate, a 100 -square -foot apartment in Athens costs an average of € 1,125 on rent. By comparison, the average gross income last year was 1,342 euros. According to ELSTAT data, 30% of renting families are at risk of poverty.
Prime Minister Mitsotakis has recognized the political urgency of the housing crisis. “We know that this is a major problem we need to face,” he said. “A coherent housing policy is therefore our central priority.”
To mitigate the lack of roof, people with low income receive a monthly rent subsidy from the government every November. Tax reliefs aim to motivate property owners to rent vacant homes. However, the government is considering higher real estate taxes for blank apartments. At the same time, the government is subsidizing renovations. New short -term leases are no longer approved in Athens. The government has increased the minimum investment amount for Golden Visas from the initial 250,000 euros to 800,000 euros. State loan subsidies aim to help new families acquire their own homes. “
The German newspaper notes that “whether and how quickly the measures will come into force is uncertain. Mitsotakis doesn’t have much time. A new parliament will be elected no later than the summer of 2027. Inflation is the most commonly mentioned problem in all polls. In a study conducted last week by the Metron Analysis Institute, 69% of respondents evaluated the government’s performance as “negative”. 46% see the next election as an opportunity for a “protest vote”.
This would benefit the populists both on the left and right side of the political spectrum. At the moment there are nine such parties in Greece. In a Metron Analysis poll, they garnered a total of 42%.
As things are, Prime Minister Mitsotakis would lose the absolute majority with which he has ruled the country since 2019 in the next elections, “the German newspaper concludes.