This collaboration includes financing through an interest-free loan from the Bank, which is an independent legal entity with a high credit rating from Moody’s, Standard & Poor’s, and Fitch.
The plan envisions the construction of 500 to 1,000 new residential units, aiming to create an economically affordable and socially sustainable housing environment for young people, students, seasonal employees, and economically vulnerable groups. The average rent will be set at €275, varying depending on the size of the unit — €250 for 40 sq.m. residences and €300 for 80 sq.m. units.
The plan was presented to the Regional Council by the Regional Governor of Thessaly, Dimitris Kourretas, who emphasized the importance of the Region’s social mission in strengthening social cohesion. The project has a planned duration of 25 years and a projected cost of €5.7 million per 100 housing units.
The average area of the residences will be 60 sq.m., with an estimated construction cost of €900/sq.m. The land plots will be provided by local municipalities, and the project will be fully self-financed, as rental income will cover the loan repayment, without any burden on the state budget.
Priority Areas
Island regions – Sporades: Rapid tourism growth has led to a lack of affordable housing for seasonal workers and vulnerable groups, as well as challenges in housing public sector employees.
Urban centers (Volos, Larissa, Trikala, Karditsa): There is a significant shortage of student housing and rising rental costs.
Mountainous and remote areas: These regions face population decline and infrastructure degradation due to urban migration.
Key Features of the Project
Borrower: The Region of Thessaly, with strong administrative capacity and the ability for long-term planning.
Cooperation with Municipalities: Identification and allocation of underutilized land and properties.
Studies and Preparation: Development of feasibility, sustainability, and implementation studies.
Construction: Development of energy-efficient (Class A) housing with integrated smart technologies.
Management and Monitoring: Creation of a transparent system for beneficiary selection and housing management.
The project is designed to operate without requiring any equity contribution, generating an annual net surplus of €35,500, which will be used to cover unforeseen expenses, build a reserve for future maintenance or expansion, and offer social tariffs for vulnerable beneficiaries. Additional funding support is also being considered through financial instruments such as the NSRF and the Recovery and Resilience Facility.
