How they gather "spur" rent increase

Property rents have risen sharply in recent years. The strengthened supply deficit in relation to demand is the main “culprit” for the trend of inflated demand.

For example, an apartment with an area of ​​28 sq.m. in Neo Cosmos is looking for a tenant, setting a simply “crazy price” – 750 euros per month. The condition of the premises, according to the advertiser, is excellent. It was recently renovated.

According to Spitogatos Insights analysis based on the Spitogatos Price Index (SPI), the southern and northern suburbs of Attica, as well as the Cyclades, are among the most expensive regions in Greece to buy and rent houses in the fourth quarter of 2023. The southern suburbs of Athens record the highest average asking price for home sales in the entire country.

The most expensive area of ​​Attica, Vouliagmeni, is in the southern suburbs, where the average asking price is €18.1/sqm. The areas of Kolonaki Lykabettos and Glyfada are also among the most expensive areas to rent in Attica. On the contrary, to the very Cheap areas for renting a house include Acharnes and Keratsini.

The president POMIDA Stratos Paradias regarding “closed real estate” (unused houses and apartments, about 800,000 units) emphasized that “the main reason why these apartments remain closed is that they require expensive repairs, as well as the high tax burden, which the owners will have to bear if they rent them out.”

Concerning closed (empty) houseswhich exist in Athens, Thessaloniki and Patras, Mr. Paradias noted that “he is waiting until ELSTAT will announce building accounting data for 2021, which is being processed to see the real picture of the real estate situation.” “The number of objects is huge, hundreds of thousands of houses. There is not a single residential building in Athens that does not have a closed apartment,” concluded the president of POMIDA.

The measure proposed to the government by POMIDA provides three-year exemption from income tax for taxpayers who rent out properties for a period of at least three years that are closed or were made available through a platform such as Airbnb during that period.

Provides that if the lessor or donor is an individual, there is a 5% deduction for repairs, maintenance, renovation or other fixed and operating expenses of the property.

This percentage should increase to 100 if the income comes from a new residential lease for a term of at least three years with a start date from January 1, 2024 to December 31, 2026 and for the first three (3) years of each leaseprovided that the residential premises are rented to individuals for use as a primary residence and have been vacant for at least 2023 or have been a short-term rental as of 12/31/2023.

As Mr. Paradias noted, this proposal will benefit tenants, since they will immediately find housing, despite the fact that the rent will be reduced. And owners, thanks to this incentive, will be motivated to use their empty homes for the benefit of themselves and the community.

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