Without a doubt, one of the biggest problems facing Greek society is housing, since both renting and buying a home have turned into a puzzle for… strong solvers.
The truth is that during the period of the financial crisis prices had been “knocked down” so that the rise that followed the return to normality creates the feeling of a greater increase than has actually taken place, if prices are compared with those of 2009.
After all, in absolute numbers, housing costs in Greece are the lowest in the euro area. However, this situation changes dramatically if we examine housing costs based on available income, since there our country climbs to second place on the relevant list, behind only Austria. At the same time the government is looking for a solution through acquisition legislation Golden Visa but also the incentives it offers to owners who own “closed” houses in order to re-allocate them to long-term leases.
The surprising reality
Certainly, the situation presented by the European Central Bank, in its report, for January 2024, is surprising, as far as the actual cost of housing in our country is concerned.
Specifically, our country is in the last place compared to the rest of the euro zone countries, while the fact that we calculate housing costs as housing costs is of particular value
the monthly cost of a household regarding the rent or mortgage amount as well as utility bills, such as electricity, water, natural gas, etc.
In more detail, in absolute numbers, the average monthly housing cost in Greece is estimated at 400 euros without a mortgage loan and at 600 euros with a mortgage loan. This money is small compared to, for example, Ireland (which is first on the relevant list) in which the corresponding amounts are 900 and 1200 euros, but there is a key factor that changes the data.
The -small- disposable income makes a difference
Those who complain about the difficulties they face in solving her housing problem are therefore wrong. The simple answer to this question is “no”. And this is because, the element that makes the difference, is the small disposable income of the Greeks. So when the specific cost is recalculated, compared to the available income, then our country occupies the 2nd place in the relevant list, behind only Austria.
Specifically, without housing loans, Greeks need to allocate 28% of their income, while with housing loans this percentage rises to 32%. So it becomes clear that the really big problem with which the Greek society is faced is not so much the prices it is asked to pay, but the income with which it is asked to do so.
It is worth noting that the rise in interest rates has created a problem in Europe as a whole, while investments in the euro zone also appear to be weakening. Also, more and more households are declaring their inability to fulfill their financial obligations, as a result of which they are late. Specifically, in recent years, approximately 5-10% of low-income households have admitted to being late in paying their rent or mortgage and/or utility bills in the past three months.
The Greek solutions
In Greece, the problem has taken on significant dimensions for another reason, which is the limited availability of housing. For this reason, the government is taking a series of measures in order to normalize the situation. First, it promotes significant changes in administration golden visa. For example, anyone who buys a house and is granted a “golden visa” will not be able to dispose of it for airbnb, whereas, if he does, he will have to pay a fine of 50,000 and see his visa cancelled.
Also, the limits increase and go up to 800,000 euros from 500,000 euros in Attica, Thessaloniki, Mykonos, Santorini and the islands with a population of more than 3,100 inhabitants, while there is also a ceiling on the area, since now in order to obtain the Golden Visa the area of the property must be at least 120 sq.m. and concerns a unique property. For example, two properties of 60 sq.m. are not counted as 120 sq.m. and therefore do not justify obtaining the residence permit.
Also, the conditions for short-term rentals are being tightened. In particular, natural persons who obtain income from the short-term rental of 3 or more properties will now be subject to the obligation to submit VAT, which will force them to start a business at the tax office and keep books.
Finally, the government has implemented the “Renovate – Rent” program, which provides for the subsidy of 40% of the renovation of houses, up to the amount of 10,000 euros, with a maximum advance payment of 2,000 euros. Necessary conditions for the beneficiaries are that the houses are declared as “closed” in E2 and are available for long-term leases.
In any case, the housing problem concerns not only Greece, but also Europe as a whole, and to deal with it, it is certain that coordinated efforts are needed, as well as enough time, in order to change the image that prevails in the market.
