The government is launching a major new initiative to increase the supply of available housing through the new “Renovate” program, which is expected to be unveiled shortly and to begin in June.
The goal of the new program, which will subsidize broader home renovation work—not just energy upgrades—is to open up and make available on the market for rent or sale thousands of homes that currently remain vacant.
The new program is part of an effort to increase the housing supply, as studies have shown that this is the most effective way to address the acute housing shortage facing Greece and most other European countries. Increasing subsidies mitigates costs but boosts demand and intensifies pressure for price increases in the housing market.
The "key features" of "Anakainizo"
The new“Renovate”program is expected to have a total budget of around 500 million euros and will provide significantly higher coverage of expenses compared to previous programs, which will increase in proportion to the number of children in the family. It will also provide for higher income thresholds for eligibility.
Thus, the subsidy could reach up to 90%-95% of the renovation cost, with basic funding of up to 36,000 euros per residence. It should be noted that in the previous cycle of the “I Renovate” program, the amount of eligible expenses was €10,000.
The funding amount will be increased by 5,000 euros for each child, meaning that for a family with two children, it will amount to 46,000 euros. According to the plans, the program will apply to existing homes up to 120 square meters. The amount of funding will be calculated with a maximum limit of 300 euros per square meter.
The two phases of the program
The program will be implemented in two phases. In the first phase, scheduled to begin in June, an assessment will be conducted to select properties that meet the eligibility criteria for the program.
In the second phase, estimated to begin in September, applications for inclusion will be submitted by the owners of properties that have passed the first phase.
According to reports, during the first phase of the program, priority will be given to assessing the eligibility of vacant homes, followed by the review of properties that are currently occupied.
In this specific program, the focus will be more on covering the costs of renovation work and less on those related to energy upgrades, as the primary goal is to immediately boost the supply of suitable housing on the market. It is estimated that 80% of the interventions will involve renovations and 20% energy upgrades.
SOURCE: APE-MPE