Greece Targets High Rents

Greece is preparing a decade-long housing strategy that could reshape its rental, mortgage and property-investment markets. The government wants to link rent caps to housing quality, make subsidized mortgages permanent, redirect Golden Visa investment into long-term rentals and bring hundreds of thousands of vacant homes back into use.

Athens sets out housing strategy through 2035

The Greek government has opened public consultation on the National Housing Strategy for 2026–2035. The document is an attempt to turn separate responses to the housing crisis into a long-term policy covering rent regulation, mortgage support, developer tax incentives and residency-by-investment rules.

Greek City Times reports that the strategy includes a national property and rent index, possible rent caps for old and energy-inefficient homes, a permanent version of the “My Home” mortgage program, a dedicated Golden Visa category for investors placing homes into long-term rental, and reduced value-added tax for social and affordable housing construction.

Greece’s housing crisis has moved beyond ordinary price growth. After the debt crisis, construction recovered slowly, household incomes rose only moderately, tourism and short-term rentals put pressure on central neighborhoods, and foreign demand supported prices in Athens, Thessaloniki and the islands.

National index would underpin rent controls

One of the strategy’s central tools is a national property and rent index. It would collect data from sales, leases, bank valuations and tax records. The index is intended not only to monitor the market but also to support possible targeted rent restrictions.

A property index is a system for regularly measuring home prices and rents by region, property type and housing characteristics. For Greece, such a tool matters because the market is fragmented: prices in central Athens, islands, suburbs and smaller towns vary sharply, while official data often lag actual transactions.

The strategy suggests that authorities may classify homes by location, condition, construction quality and energy performance. That means maximum rent could depend not only on area but also on the condition of the apartment. An old home with a weak energy certificate would no longer automatically be able to command rent comparable with a new or well-renovated property.

Rent caps would target poor-quality homes

The rent-cap proposal is politically sensitive because Greece’s rental market has long been relatively liberal. But the government is not proposing broad price controls; it wants a more targeted mechanism for low-quality housing.

Energy-inefficient housing means an apartment or house where high heating, cooling, electricity and hot-water costs result from poor insulation, old windows, outdated systems or a low energy-performance rating. In Greece, this is especially visible in the old apartment stock of Athens and Thessaloniki.

If rent caps are introduced, they could change landlord behavior. Owners of older apartments would find it harder to raise rents without investing in upgrades, because regulators could take technical quality into account. That may encourage renovation, but it also risks pushing some landlords into informal arrangements if controls and taxes become too strict.

“My Home” mortgage program may become permanent

The second major pillar is turning the “My Home” program into a permanent mortgage-support tool. The scheme is aimed at young buyers, low- and middle-income households and people purchasing their first home.

Under the proposed model, the state would move away from temporary direct subsidies and instead use tax incentives for banks. Lenders would receive tax benefits if they offer lower mortgage rates to target groups. The aim is to create a durable homeownership mechanism that does not depend entirely on European Union or post-pandemic Recovery Fund money.

A mortgage rate is the cost of a home loan. The lower it is, the more affordable monthly payments become for households. But in a market with limited supply, subsidized mortgages have a mixed effect: they help buyers, but they can also support prices if the market does not receive enough new or renovated homes.

Mortgages cannot solve a supply shortage alone

Greece has already faced a situation in which demand recovers faster than supply. If cheaper credit increases the number of buyers while available housing remains limited, prices may receive another boost.

That is why the strategy links mortgage support with other measures: returning vacant apartments to use, tax cuts for affordable construction, restrictions on short-term rentals and a Golden Visa redesign. Without those elements, the “My Home” program could become not only social support but also an additional demand driver.

For young households, the issue is not only the rate but also the availability of suitable properties. If the market is dominated by older apartments requiring repairs, subsidized mortgages must be paired with renovation finance. Otherwise, buyers may get a loan but still face major costs for insulation, wiring, plumbing and building condition.

Golden Visa to be tied to long-term rental

A separate part of the strategy concerns Greece’s Golden Visa program. It grants residence permits to non-European Union citizens who meet investment conditions, most often through real estate purchases.

The new category would focus on investors who buy properties and place them into long-term rental, not short-term tourist use. Greek City Times says investors may purchase multiple properties if they are offered under long-term leases rather than through short-term platforms such as Airbnb.

This is an important shift. Investment migration has often increased demand for apartments in central districts and tourist areas without necessarily expanding housing supply for residents. The government is now trying to make foreign capital part of the solution rather than only a source of price pressure.

Investment migration shifts focus

Greece’s Golden Visa remains one of Europe’s prominent residency-by-investment programs. In 2026, minimum thresholds depend on location and property type: higher requirements apply in the most sought-after areas, including parts of Athens, Thessaloniki, Mykonos and Santorini, while lower thresholds remain in less pressured areas. Commercial advisers cite a range from €250,000 to €800,000 depending on category and location.

For the housing market, the amount invested is only one issue. The use of the property matters more. If an investor buys an apartment for short-term tourist rental, local tenants lose a potential home. If the same capital goes into long-term leases, the market receives additional supply.

Enforcement will be difficult. Authorities will need to verify that properties are actually in long-term rental, are not later shifted into tourism use and continue to meet residence-permit conditions. Without strict monitoring, the new category could become a formality.

Lower VAT to support affordable housing

The strategy also proposes lower value-added tax for social and affordable housing projects. Value-added tax is an indirect tax included in the price of goods and services. For developers, a lower rate can reduce project costs and improve financial viability.

Affordable housing does not necessarily mean state-owned housing. It usually refers to units rented or sold below market rates to households within defined income groups. Social housing targets more vulnerable groups and often requires direct public involvement.

OT.gr reported that projects under such schemes may include a minimum 10-year commitment, tax deductions on rental income and centrally set maximum rent levels. For investors, that means lower yield per square meter but greater predictability and possible tax compensation.

Vacant homes are the main market reserve

The largest number in the strategy is 800,000 vacant homes, excluding second homes and holiday properties. Greece’s broader statistics show 2.2 million empty dwellings. This is a large reserve for a country where households face rising rents and young buyers increasingly delay first-home purchases.

The problem is that vacant housing is not the same as available housing. A significant share is old: 32.7% was built between 1961 and 1980, 30.7% between 1981 and 2000, and more than 22% before 1960. These homes often require repairs, energy upgrades, legal cleanup or inheritance settlement before they can return to the market.

Bringing them back requires more than appeals to owners. Renovating an old apartment in Athens may involve new windows, wiring, plumbing, heating, cooling, insulation and technical documentation. Without cheap credit or subsidies, many owners will not place such homes on the rental market.

Renovation becomes the central tool

Renovation means comprehensive improvement of housing through repairs, energy upgrades, replacement of building systems and preparation for sale or rental. For Greece, renovation matters more than in many other European markets because much of the housing stock was built decades ago.

Greek Reporter has reported that in 2025, 75.6% of residential properties sold in Greece were more than 20 years old; in Attica the share reached 86.2%, while in Thessaloniki it was around 87%. That means the shortage of new housing has already made old stock the core of the transaction market.

The new strategy effectively recognizes that reality: Greece cannot build enough new homes quickly to solve the crisis. It must therefore return what already exists but is unused or below modern standards.

Short-term rentals remain under pressure

Although the new proposal focuses on Golden Visa, mortgages and rent caps, short-term tourist rentals remain one of the key drivers of Greece’s housing stress. In Athens, Thessaloniki and the islands, part of the housing stock has moved from long-term rental to tourist use.

Short-term rental means renting a property for a few days or weeks through digital platforms. It is often more profitable for owners than ordinary leases, but for cities it reduces housing supply for permanent residents, raises prices and changes neighborhood structure.

eKathimerini previously reported that the government had already announced measures to limit short-term rentals and offer tax incentives for bringing homes back to the long-term market. The 2026–2035 strategy makes that direction more systematic: the rental market is being treated as part of social policy, not merely a byproduct of tourism.

Home prices have moved above pre-crisis levels

Greece’s property market has gone through a full cycle: collapse after the debt crisis, recovery, acceleration driven by foreign investment and tourism, and now a shift into an affordability crisis. Greek Reporter said prices have already surpassed pre-debt-crisis levels and that the government package is built around fiscal incentives, regulatory change and direct support.

For households, this means a widening gap between incomes and housing costs. Even if mortgages become cheaper, down payments, renovation and taxes remain high barriers. For renters, the problem is even sharper: they do not benefit from property-price gains but pay through higher monthly rents.

Over the long term, market stability will depend on whether the state can increase supply. If policy is limited to rent caps and subsidized mortgages, demand will remain high and the structural shortage will persist.

Risks for landlords and investors

For landlords, the strategy means a tighter link between housing quality and rental income. Old, poorly insulated apartments may face maximum-rent limits. Renovation becomes not only a comfort issue but also a condition for preserving returns.

For investors in Greek real estate, the logic of transactions is changing. Properties aimed at short-term rental or passive Golden Visa ownership may become riskier. Properties that can be legally and stably offered under long-term rental, especially after renovation, may gain advantages.

But regulatory risk remains. If rent caps are too low, some investors may reduce activity. If tax incentives are too complex, developers may not receive enough incentive to build affordable housing. If monitoring of long-term rental is weak, the new Golden Visa route will not increase real supply.

Market awaits consultation details

Because the strategy is still under public consultation, key parameters may change. The market needs precise formulas: how the rent index will be calculated, which properties will face caps, what VAT rates will apply to affordable housing, what tax incentives banks will receive and what conditions the new Golden Visa category will impose.

Administrative capacity will also matter. A national index requires high-quality data, regular updates and coordination among tax authorities, banks, notaries, lease registers and municipalities. Without accurate data, rent controls may become uneven and contested.

For developers and banks, predictability is essential. If rules are clear for 10 years, the market can adapt. If they change frequently, investors will price political risk into projects.

What the strategy means for Greece’s market

For tenants, the strategy promises protection against excessive rents, especially in old and low-quality homes. For young buyers, it offers the possibility of cheaper mortgages. For developers, it creates a tax incentive to build affordable housing. For foreign investors, it opens a new Golden Visa route but with a social obligation through long-term rental.

For the state, this is an attempt to make housing policy more manageable. Until now, Greece has often responded to the crisis with separate measures: subsidies, renovation programs, Golden Visa changes and short-term-rental restrictions. The 2026–2035 strategy aims to bring those instruments into a single system.

as reported by International Investment experts, Greece’s new housing strategy is the clearest acknowledgment yet that the market cannot restore affordability on its own. Its success will depend not on the number of measures announced, but on execution: the rent index, monitoring of long-term leases, return of vacant homes and the economics of affordable construction. Rent caps may protect tenants, but without renovation and new supply they will only redistribute scarcity. For investors, Greece remains attractive, but the new model increasingly discourages passive property ownership and requires participation in solving the housing crisis.

FAQ on Greece’s 2026–2035 housing strategy

What is Greece’s National Housing Strategy 2026–2035?

It is a long-term government plan to address the housing crisis. It includes rent controls, mortgage support, the return of vacant homes to the market, tax cuts for affordable housing and changes to the Golden Visa program.

Will Greece introduce rent caps?

The strategy allows for targeted rent caps on old, low-quality and energy-inefficient homes. Any decision would be based on a national property and rent index that considers location, condition and housing characteristics.

What will change in the “My Home” program?

The “My Home” subsidized mortgage program may become permanent. Instead of temporary direct subsidies, the government wants to provide tax incentives to banks so they can offer lower mortgage rates to young and low- or middle-income buyers.

How will the Greek Golden Visa change?

A new Golden Visa category is planned for investors who buy properties and place them into long-term rental. The aim is to direct foreign capital toward housing supply for residents rather than short-term tourist rentals.

Why are vacant homes important to the housing crisis?

Greece has about 800,000 vacant homes excluding holiday and second homes. Renovating and returning even part of that stock to the market could increase housing supply and reduce pressure on prices and rents.