According to analysis by BluPeak Estate Analytics, residential property prices in Greece have increased by 30% over the same period, significantly limiting homeownership prospects and shifting demand toward rentals. This trend intensifies pressure on the rental market—particularly for lower-income households, which now spend approximately 60% of their monthly income on rent, creating conditions that undermine the ability to maintain a decent standard of living.
At the same time, the extensive use of housing for short-term rentals (STRs) is dramatically worsening the problem, especially in areas of high tourist activity such as Athens, where in Q2 2025, asking rents increased by 7.2% year-on-year. The market now counts more than 15,400 active STR listings, absorbing critical housing stock from the long-term rental sector and further disrupting the balance between supply and pricing.
Urgent Need for Targeted and Measurable Policy Measures
The current situation calls for immediate, data-driven, and structural interventions, not merely temporary or fragmented measures. One key proposal is to introduce a cap on STR density in areas where STRs exceed 10% of total housing stock, coupled with biannual reviews. This would facilitate the gradual return of housing units to the long-term rental market, with the potential to reduce rents by 2–5% within one year.
Incentives for Property Owners
A targeted incentive framework for property owners is also required, encouraging renovations and the allocation of housing based on social and economic criteria. Suggested measures include:
- An additional 10% tax deduction on renovation expenses
- Access to low-interest microloans, conditional upon a mandatory 3-year lease with a reference rent, indexed by location and property size
- Such policies would aim to immediately expand the available rental stock in a socially responsible and efficient manner.
- Municipal Housing and Public-Private Partnerships
Another complementary proposal involves the creation of express municipal housing through the utilization of publicly owned assets and public-private partnerships (PPPs). The goal would be to provide at least 2% of the total housing stock as affordable housing within 18 months, significantly improving access for vulnerable populations.
- Targeted Social Support & Energy Subsidies
- Social interventions must be targeted and measurable, including:
- Housing allowances linked to household income and local cost of living
- Energy efficiency subsidies for tenants living in older or energy-inefficient homes
An investment framework supporting “renovation for lease” projects is also proposed, incorporating innovative models such as collaborations with fintech platforms that finance renovations and lease properties based on pre-agreed social criteria.
Digital Transformation: A Cornerstone for Housing Policy
A core pillar of any sustainable solution is the full digitization of the real estate market, through the creation of a National Registry of Properties and Rentals. This platform would dynamically record usage, availability, and pricing for each property—providing a unified data tool for both central government and municipalities.
In parallel, the establishment of quarterly digital dashboards at the neighborhood and district level, overseen by ELSTAT and local authorities (OTAs), would reduce information asymmetry and enhance transparency for both citizens and policymakers.
