Greece to Bring Back Vacant Homes to the Market

The Greek government is preparing a large-scale program to reduce the number of vacant residential properties. The plan aims to address the housing shortage, control rising prices, and combat tax evasion, according to Ekathimerini.

According to the Independent Authority for Public Revenue (IAPR), there are about 600,000 empty apartments and houses across the country. Meanwhile, the supply of quality housing — especially in Athens, Thessaloniki, and on popular islands — significantly lags behind demand. New housing stock is being introduced slowly, hindered by the lack of a long-term urban planning strategy, frequent regulatory changes, and lengthy bureaucratic procedures.

As a result, prices continue to rise and affordability declines. According to Indomio, the average cost per square meter reached €2,543 in February 2025 — a 1.64% year-on-year increase. High foreign demand further drives prices: in 2024, international property investment hit €2.75 billion, with 9,381 golden visa applications. In response, the government raised the minimum investment threshold to €800,000 in key regions like Athens, Thessaloniki, Mykonos, and Santorini to cool prices and redirect housing for residential rather than investor use.

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Prime Minister Kyriakos Mitsotakis is expected to present these new initiatives at the Thessaloniki International Fair on September 7, 2024. The government plans to modernize property tracking and create a transparent online platform — modeled after U.S. real estate portals — where users can follow transaction histories, price dynamics, and rent trends. This should help renters and reduce undeclared income from short-term rentals, which remains high.

In districts heavily dominated by Airbnb-type rentals, locals — including essential workers like doctors and teachers — struggle to find affordable housing. To ease the strain, authorities have banned new short-term rental registrations in Athens neighborhoods like Kolonaki, Koukaki, Pangrati, and Exarchia.

Starting October 1, new technical requirements will take effect, including mandatory windows, ventilation, air conditioning, first-aid kits, and insurance. Additionally, tax rates are rising: from €1.5 to €8 per night in peak season, and from €0.5 to €2 in low season — targeting the same central Athens neighborhoods.

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The government will also expand the "My Home" program for young families. Phase two is under development and expected to be supported by €1.7 billion in EU recovery funds, bringing the total budget to around €2 billion.

Analysts predict that Greece’s housing market will continue growing in the second half of 2025, albeit at a slower pace. According to Knight Frank, prices will rise by around 2.3% — higher than the Eurozone average of 1.3% — driven by limited supply and steady demand in tourist areas and urban centers.

In 2026, growth may range between 2% and 4% depending on the region. Regulatory tightening — including new golden visa terms and short-term rental limits — will shape demand. However, external economic risks such as inflation and Eurozone instability may affect performance.