2024-08-25 06:47:32
The housing crisis – i.e. skyrocketing rents and lack of housing supply – is one of the issues we expect to hear from the Prime Minister, Kyriakos Mitsotakis, at the TIF.
The financial staff are putting the finishing touches on a package of interventions aimed at increasing the supply of rental housing and, through this, lowering prices to make housing affordable for households.
Incentives and disincentives
According to information from the APE – MPE, this goal will be sought to be achieved through multi-level solutions and not through a single intervention. In general, the aim is to open closed apartments, which are either inactive by choice or are in poor condition and cannot be rented. At the same time, it will seek to discourage landlords from offering their apartments for short-term rental and return them to the long-term rental market.
The first objective is estimated to be achieved by establishing incentives and disincentives for closed apartments. In fact, AADE is already starting to record them, in order to have a clear picture of their number, as the estimates differ. Others speak of 200,000 properties, while others of 600,000.
Also, it will be sought to have a clear picture of the condition of each property, so that any interventions can be decided accordingly.
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The change of the Golden Visa limit
It is also estimated that the housing supply will improve from the implementation of the decision to increase the threshold for granting the Golden Visa from the current 250,000 euros to 800,000 euros. The measure will be implemented from September 1.
On the other hand, the Panhellenic Federation of Property Owners (POMIDA) considers that incentives should be given and not punitive disincentives, such as the increased ENFIA for closed apartments.
The 6 interventions
According to the scenarios gathered by the RES-MPE, the government’s interventions will move, among others, along the following six axes:
1. Closed apartments: In the government they consider that there is a huge stock of inactive properties, which under certain conditions can affect the supply of housing in the market. Their exploitation process will begin by recording their characteristics, such as location and condition, to consider how they can be further exploited.
2. Short term rentals: There will be changes in the operation of the market, with interventions mainly of a tax nature and increased rates. Also, it is possible that a limit, depending on the area, will be set on the rental properties or a combination of the two.
3. Real Estate Registry: The creation of a platform for the public posting of real estate information is being considered in order to enhance transparency in the market. The platform will include information on sales and rental prices, with the aim of combating tax evasion and providing better information to the public.
4. “My House II”: The government is awaiting approval from Brussels for the inclusion of the second stage of the “My Home” program in the Recovery Fund. The new stage of the programme, with a budget of 2 billion euros (of which 1.7 billion euros from Community funds), will include changes to the age and income criteria, as well as the conditions for the value and age of the properties.
5. “Social Compensation”: The program will provide low-rent housing from the State’s idle property. It is planned to build more than 2,500 homes for citizens up to 39 years of age, with the option to buy after a certain period of time.
6. Renovate-Rent: The scheme will be strengthened by an increase in the subsidy for repair work in closed flats so that they enter the rental market.
These initiatives are expected to contribute to solving the problems of the real estate market, enhancing accessibility for citizens and offering solutions to the housing crisis that affects many in Greece.