Greek government seeks solution to housing crisis

Greece is solving a difficult problem – how to get out of the housing crisis. Eurostat data shows that Greeks spend the most on housing in Europe.

According to experts, a union between the state and the private sector is necessary to overcome the crisis. Phil Jenkins, a British property expert, believes that the sufficiently high national debt does not allow the government to spend large amounts of money on solving the housing crisis. To support the most vulnerable, public-private partnerships are critical, he says:

“Some of the funds will have to come from private capital markets. It’s really a case of governments creating the environment and framework within which private capital can invest in affordable housing.”

Over the past seven years, housing prices in Greece have increased by 50%. The government is trying to bring more apartments onto the market to bring down prices. Sophia Zacharaki, Greek Minister of Social Policy and Family, explains:

“Our goal is to make available as many old and unused apartments as possible. These are hundreds of thousands of premises, especially in Athens. We offer grants for renovation projects, energy and aesthetic projects. These programs will start operating in the near future. And of course we will continue to implement social housing programs.”

So far, the real estate market has shown strong resistance to rising interest rates. However, its participants are convinced that the impact of expensive loans and the rising cost of living will soon have a negative impact. Property prices are not expected to fall until next year at the earliest.