The Greek government’s financial team are to roll out a series of targeted measures to help maintain the real estate investment momentum, with a view to boosting market performance for the rest of 2024, as residential property investments make up a vital piece of the gross capital formation pie.

The current housing and interest rates price rise has resulted in a more difficult environment for investors to navigate. To reverse this situation, a join effort by the government and banks is in the works, with three strategic directives, focusing mainly on loan policies. More specifically:

• Banks are to launch loans covering up to 90% of the property’s value with low initial installments and more favorable, fixed interest rates ranging from 2.5 to 3% for the first three years, as well as extended repayment periods to keep monthly payments under control.
• Using resources from the Recovery Fund to provide subsidized housing loans, in a continuation of the highly successful My Home program of 2023. The government expects to secure at least €2 billion, with a view to aid a minimum of 30,000 households to obtain owner-occupied primary residencies and alleviate the housing crisis for young Greeks and families over the age of 40. An increase in the age and income criteria compared to the previous iteration of My Home aims to include families with children , since prospective buyers of a relatively older age will be able to provide their own capital, as well.
• Adjustments to the Renovate-Save scheme will involve an increase to the maximum subsidy amount from the current €4,000 to €6,000. There are also plans to extend the scope of repairs to vacant apartments, with the renovations coverage limit set at €10,000, so that roughly 8,000 properties will be available for long-term rental.