Housing measures: New restrictions on Airbnb and incentives for new homes

The Prime Minister, Kyriakos Mitsotakis, announced government interventions to address the housing crisis from the floor of Parliament, during his speech in the debate on the adoption of next year’s state budget.

Specifically, he unveiled six new measures aimed at increasing the supply of housing and improving living conditions.

In detail, the six additional measures announced by the Prime Minister are:

1. A generous home renovation program covering up to 90% of renovation costs – €400 million allocated for upgrading old, vacant properties, with subsidies of up to €36,000. The income threshold is set at €35,000 for couples, with an additional €5,000 for each child.
2. Two annual rent reimbursements for 50,000 teachers, nurses, and doctors working outside the urban centers of Attica and Thessaloniki, regardless of income.
3. Local plans to upgrade municipal and state-owned buildings in mountainous and island regions, converting them into housing for public sector employees.
4. New restrictions on short-term rentals: Existing regulations are extended to the center of Thessaloniki. Additionally, in areas of Athens and Thessaloniki where short-term rentals are banned, any such property that is transferred will be automatically removed from the Short-Term Rental Property Registry.
5. A new incentive framework for private investments in affordable housing: Construction companies will be allowed to build new apartments or convert existing buildings into residences exclusively for rental for a minimum of 10 years. Rental income will be tax-deductible, and the maximum rent level will be centrally determined.
6. Urban planning regulation by the Ministry of Environment and Energy (YPEN) to enable the rapid conversion of existing properties to residential use. Abandoned or unfinished buildings will be included in the category of private investments, with tax deduction incentives.