According to the latest census of 2021, in Greece of 10.5 million inhabitants, there are 770,000 closed properties nationwide, with the majority located in the capital and the co-capital. In the province, the number of these properties has been estimated at around 100,000.

This number of foreclosed homes is down 15% from the 2011 census, but in proportion to the population and the number of properties available on the market, it is very high. It is one of the main reasons, along with the rapid spread of Airbnb-style rentals, that the properties available for rent are few and far between.

A solution is being sought for all these properties in order to reduce the sales prices but mainly the rents which are currently one of the biggest "thorns" for the functioning of households and to help young couples find affordable housing.

Why are they closed?

Some of the main reasons why the properties in question remain closed are their age and condition, which require high renovation costs. In some cases it is not in the owner's interest to renovate and lease, but to sell. Another factor that thousands of properties remain empty is their "multi-ownership". The owners do not find each other and so the houses remain unoccupied. In addition, a large number of properties are in the possession of investment funds - the well-known funds, waiting to complete a "maturing" process before being put on the market for sale. Finally, the high taxation of rents combined with ENFIA, leads owners to refuse long-term leases and look for short-term lease solutions.

Sound proposals have been given by the Panhellenic Federation of Property Owners as immediate solutions to unlock the properties. These are the 3-year tax exemption of the owners from the income tax of the houses that were empty throughout 2023 and those houses, which are currently allocated for short-term rental, are rented out as a main residence for at least 3 years. This proposal does not create a fiscal problem since it concerns future and not existing leases. It will certainly cause the reintegration of several thousand vacant and renovated homes across the country into the rental housing market. In addition, the new provision for tax refunds from the costs for energy, functional and aesthetic upgrading of buildings is a measure that can help households in the renovation of existing properties.

 

Vacant properties immediately need government decisions for solutions, in order to unlock the current situation that creates social and population problems especially for young couples.

*Thanasis Stamou is the director of INVESTA Real Estate. He has experience in the field of Real Estate since 2005. He is a real estate agent, appraiser, negotiator and investment advisor. Specializes in training Real Estate Consultants.