The first tender under the Social Housing Initiative is set to launch in 2025, aiming to construct 150 apartments, with units to be offered at low-cost, social rents. The government is revising its program for affordable housing to attract construction firms interested in developing social housing on state-owned land.

According to sources, the Ministry of Social Cohesion and Family is enhancing incentives for construction companies to encourage participation. The Hellenic Republic Asset Development Fund (HRADF), leveraging its expertise, will manage the tenders and assign public land projects to private contractors.

As the Ministry drafts a new National Housing Strategy to submit to the European Commission, the Social Housing Initiative is outlined as follows:

1. Public Property Allocation: Through a tender process, private developers (construction or real estate firms) will receive long-unused public properties (vacant plots or existing structures) for development.

2. Construction Model: Developers will be tasked with constructing residential or commercial buildings (shops, offices, malls, etc.) on public land per tender requirements. For existing properties, demolition may be required.

3. No Cost to the State: All construction expenses will be borne by the participating companies.

4. Developer Benefits: Developers will retain approximately 70% of the constructed units for rental or sale over a specified period, allowing for cost recovery and reasonable profits.

5. Social Housing Allocation: About 30% of the constructed units will be reserved for vulnerable households at below-market rents, affordable purchase prices, or rent-to-own arrangements. For example, in a building with 10 apartments, developers may retain 7 units, with the remaining 3 designated as social housing.

6. Management by the State: A government entity will oversee the allocation of social housing, selecting tenants based on objective criteria such as income, family composition, and dependent children’s ages. Priority will be given to young people and couples.

7. Tender Specifications:

Each tender will outline:
– The characteristics of the land or existing structures and the building’s compliance with accessibility standards for individuals with disabilities.
– The division of ownership and approved uses of the properties.
– Criteria for developer participation and selection.
– Key terms of leases, excluding rental amounts.

One site selected for the Social Housing Initiative is the 17,893 m² Chropei property on Piraeus Street, unused since the 1980s. Originally planned to become a Greek Silicon Valley, it will now house approximately 300 apartments, some of which will be rented by the government as social housing. The contractor will retain a significant portion of the units for private use, while the remaining apartments will be allocated for low-cost housing aimed at young people and couples.

Meanwhile, construction is set to commence on the Anatolia site, a 29,576 m² plot in Nea Ionia, Attica, previously home to the Anatolia textile factory. The program will also utilize 1,600 additional vacant properties across the country.

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