Greece Unveils New Housing Measures Targeting Rents, Short-Term Lets, and Public Workers
Athens, January 27 – The Greek government has announced a comprehensive set of secondary legislative initiatives aimed at tackling the growing affordable housing crisis and bolstering social cohesion across the country. These proposals, presented to the Cabinet on Monday, January 26, 2026, by Minister of National Economy and Finance Kyriakos Pierrakakis and Minister of Social Cohesion and Family Domna-Maria Michailidou, build upon commitments previously outlined by Prime Minister Kyriakos Mitsotakis.
The new measures are designed to alleviate housing pressures in high-demand urban areas and provide crucial support to key public sector employees. A significant provision of the package expands housing assistance for public school teachers, doctors, and nurses who are required to rent accommodation away from their permanent residences. Under the revised scheme, eligible employees serving outside the greater Athens and Thessaloniki regions will now receive a refund equivalent to two months’ rent, a notable increase from the previous one-month refund, and importantly, without any income-based criteria. The government estimates that approximately 50,000 education and healthcare professionals are set to benefit from this enhanced support.
Curbing the Expansion of Short-Term Rentals
In a move to address the impact of short-term rentals on housing availability and affordability, the government is also introducing stricter regulations. These new restrictions will specifically target properties located in the central municipal district of Thessaloniki, mirroring a model already implemented in central districts of Athens. Furthermore, any properties in these designated restricted areas that undergo a change of ownership will be automatically removed from the national short-term rental registry. These properties will then be prohibited from re-entering the system for the entire duration that the restrictions remain in effect, aiming to prevent speculative purchases and encourage long-term rentals.
Introducing the ‘Build to Rent’ Scheme
A key component of the legislative package is the introduction of a new housing scheme named “Build to Rent.” This innovative program seeks to significantly increase the supply of affordable rental housing by encouraging private sector participation. Under this scheme, construction and real estate management companies will be permitted to develop new residential properties or convert existing non-residential buildings into housing units. A crucial condition for participation is that these units must be offered exclusively for long-term rental periods of at least ten years, with pre-determined and controlled rent levels. To incentivize private investment in this area, rental income generated through the “Build to Rent” scheme will be exempt from corporate income tax, making it an attractive option for developers looking to contribute to the affordable housing market.
These initiatives collectively underscore the Greek government’s commitment to addressing pressing housing challenges, supporting essential public workers, and fostering greater social cohesion through accessible and affordable accommodation options. The impact of these measures will be closely monitored as they are implemented across the country.
Source: https://www.dnews.gr/eidhseis/news-in-english/569123/greece-unveils-new-housing-measures-targeting-rents-short-term-lets-and-public-workers
