A total of 1.5 billion euros is expected to be made available in the coming years by the government as part of the reactivation of the policy social housing. According to the Minister of National Economy and Finance Kostis Hatzidakis, who spoke yesterday at 24th Prodexpo Conference“our goal is to increase the supply of real estate in the market, so as to reduce the high rental prices. For this purpose, we will utilize real estate of the State. We don’t have to wait years until the full registration of 100% of the properties controlled by the State is completed. We must focus on what has been fully recorded”, said Mr. Hatzidakis.
According to him, in the next period a series of programs and actions will “run” in this direction, such as for example the utilization of lands through PPP, within the framework of the institution of social compensation, which will concern finding affordable housing for young people aged 25-39. “There are plots of land that belong to DYPA and are located in Kifissia. Investors will keep a part of the property for their own use and the rest will go according to social criteria to people who meet them. There, the private sector will also have an interest in the buildings being of a high standard”, pointed out Mr. Hatzidakis.
In the first phase, closed public buildings will be reconstructed and given to young people for a small rent.
It is recalled that in the first phase of the program, closed buildings of the State will be reconstructed, so that they can be granted – for a small rent – to young people or new couples. In a second stage, the tenders will be “run” within 2024 to select the contractors who will make use of undeveloped DYPA plots with the aim of completing the construction of the first houses by the private builders in 2025. DYPA will then publish the call for the selection of beneficiaries based on social criteria. From the registration that has been made, 98 suitable plots were identified within the plan, with a total area of 627 acres, of which a third is in Attica, as well as 10 plots with a building permit of 75 acres which are considered the most ripe for exploitation. The planning also includes areas outside the plan, as well as unfurnished houses, apartments, offices. These are 11 acres in Kifissia, 20 in Paiana, 40 in Larissa, 28 in Xanthi and 74 in Volos, where social housing will be built.
Another program that will start in December is to subsidize the renovation/repair of empty apartments, provided they return to the market through their long-term lease for a period of at least three years. The program, with the title “Renovate – Rent”, will start with a budget of 50 million euros. The amount of the subsidy amounts to up to 10,000 euros and concerns 40% of the expenses that will be incurred. The program will be open to owners or beneficiaries of real estate (as long as the percentage exceeds 50%), up to 100 sq.m., with an annual family income (taxable) that does not exceed 40,000 euros. Their real estate cannot exceed 300,000 euros. Obviously the eligible property must be declared vacant on the E2 form (for the last three years) and those interested must not have received a grant for another energy saving or renovation scheme in the last five years.
One million properties are off the market
According to what real estate market players reported yesterday, it is estimated that around 1 million homes are currently off the market, either because they are tied up due to debts or are declared vacant/unused by the owners (over 750,000, based on relevant data). e.g. due to legal disputes, or extensive damages, or due to the reluctance of their owners to rent them out, due to a negative experience in the past.
750,000 homes are closed and 185,000 are in the possession of servicers.
“The paradox in Greece is that there is a housing availability problem. We estimate that over 185,000 homes are going to be gradually put on the market over the next 5-7 years, through auctions,” Mr. Antonis Markopoulos, co-founder and CEO of Prosperty, a digital real estate management platform. These properties are currently under the management of claims management companies (servicers), who are also responsible for their maturity. In fact, of these properties, approximately 70%-75% are located in the two major urban centers of Athens and Thessaloniki.
The utilization of these homes is an investment opportunity, however, their effective placement on the market, in order to actually cover housing needs and contribute to the rationalization of sales prices, also lies in changing the context of auctions. Today, according to what Mr. Markopoulos reported to “K”., there are three main reasons why many homes do not sell at auction. “The first reason is social, as there are many who do not wish to acquire property in this way, for reasons of solidarity. The second reason lies in the fact that one needs to have available liquidity, equal to 100% of the value of the property”, emphasizes Mr. Markopoulos. Even if there is such liquidity, few are willing to commit their money for such a significant period of time, as time is also required until the process of rendering the property to be auctioned is completed. The third reason is that insufficient information is provided on the condition and interior of the properties, which also acts as a deterrent. According to Mrs. Olga Eftychidou, head of the legal department of the Sioufas & Associates office, “there is a large pool of real estate that could help satisfy demand.”
