Fifty thousand social housing units as an antidote to the housing crisis.

In order to provide some “relief” to the already acute housing problem of the country, the Ministry of Social Cohesion and Family is promoting the social housing program, which foresees the creation of 53,880 social housing units over the next five years.

Through the mechanism of social exchange and public-private partnerships, public properties will be utilized, which in the first phase will offer 5,000 homes with affordable rent for vulnerable households, at a time when Greece is in the worst position in the European Union regarding housing affordability.

35% of Greeks’ income goes to housing

The housing crisis in Greece is peaking this year, with recent Eurostat data revealing that Greeks spend 35.5% of their disposable income on housing costs, a percentage that is the highest in the EU-27, while the European average does not exceed 19.2%.

At the same time, while this percentage in the EU is gradually decreasing, since in 2023 it stood at 19.7%, in Greece the opposite trend is observed, with the percentage at 35.2% in 2023 and 34.2% in 2022.

At the same time, rents increased by 10.9% in May 2025, while the overall housing sector rose by 6%, according to ELSTAT data. During the period 2020–2024, rental prices increased by 21.5%, while unpaid rents rose by 23% in 2024, confirming the financial challenges faced by households in the country.

The European Commission has also sounded the alarm, characterizing the housing situation in Greece as a “housing affordability crisis” and advising the adoption of a comprehensive housing strategy.

The social exchange plan
Within this framework, the relevant draft bill has been put up for public consultation, providing for the utilization of public real estate for the construction of social housing. The new General Directorate of Housing and Demographic Policy, to be established within the Ministry of Social Cohesion and Family, will undertake the design, implementation, and coordination of housing policies.

For the time being, there are 10 plots of land (75 stremmas) ready for development, with building permits, in Kifisia, Paiania, Larisa, Xanthi and Volos. Also of particular importance are the former “Anatolia” factory in Nea Ionia, the two EFKA plots in Argyroupoli, and the historic YFANET building in Toumba, Thessaloniki. In addition, 98 suitable plots (627 stremmas) have been identified within city plans, about one third of which are located in Attica.

The program will have zero cost for the State, as the undeveloped plot will be granted to the contractor, after a tender, in order to construct modern residential buildings. The tenders will be carried out with HRADF (TAIPED) as the executive arm, due to the expertise of its project maturation unit.

The exploitation rate for the contractor will range between 30% and 60%, with the aim of ensuring the public interest, while also making the program attractive for private developers to build modern, quality social housing.

Beneficiaries are expected to be mainly young people up to 39 years old or young couples, but also low-income earners, large families and single-parent households, who will live in the homes built by private developers, at affordable rents, for at least 10 years.

The amount of rent to be paid by the tenants of social housing will be “substantially lower” than the rent determined by market conditions for a residence of equivalent quality characteristics, as specifically stated in the draft bill.