“Ανακαινίζω” program: up to €36,000 for renovation of old housing

From June 15 Greece plans to open pre-check for new program “Ανακαινίζω” (repairing – renting out): the subsidy can reach 36,000 euros.

Greece is preparing to launch a new program “Ανακαινίζω»which should help bring thousands of closed apartments back onto the market. WITH June 15 it is planned to open the first stage – electronic verification of eligibility criteria through gov.grand funding applications are expected to be submitted in early September.

The program is stated as one of the government’s central measures against housing crisis and a shortage of affordable long-term rental housing. According to Greek media, the total budget of the new mechanism should be about 500 million eurosand it can cover approximately 20,000 apartmentsbuilt before 1990. As he writes Proto Themethe subsidy can reach 300 euros per square meter for housing up to 120 sq. m.

Maximum basic support can be approx. 36,000 euros to the object. For vulnerable categories, including people with disabilities, single parents, large and three-child families, as well as for facilities in certain geographical areas, the subsidy share can reach up to 95% allowable expenses. According to ERTbasic income criteria are guided by the program model “Σπίτι μου 2”.

Who does the program apply to?

The new program is focused primarily on the owners of closed old apartments, which can be returned to the market long term rental. The main idea is simple: the state helps with repairs, but the owner cannot then leave the apartment empty again or use it at his own discretion as another object of expectation of rising prices.

According to preliminary data, the program will concern housing:

• built before 1990;
• area up to 120 sq. m;
• which can be returned to the long-term rental market;
• for which the necessary technical and energy documents can be confirmed;
• subject to the owner’s income and property criteria.

Owners will need to prepare two important documents: building identification And energy efficiency certificate. The latter is needed to confirm that after the work the object will rise by at least one energy category. And here comes the favorite Greek part of any program: money is promised, but first the citizen must collect papers, prove the obvious and pass an electronic filter.

How much can you get

The subsidy will be calculated by area, with an upper limit 300 euros per sq. m. For an apartment up to 120 sq. m this gives a maximum amount of about 36,000 euros.

The basic percentage of support, according to preliminary information, will be in the range 80%–90% allowable budget. Additional 5% Families with three and many children, households with people with disabilities, as well as property owners in island or mountainous areas can receive it.

It is specifically emphasized that the new “Ανακαινίζω” changes the emphasis: the bulk of the subsidy will be aimed specifically at renovation workand energy interventions will be covered in a smaller share – approximately 20% related expenses.

What work will be covered?

The following may be subsidized for repairs:

• plumbing work;
• electrical installation work;
• strengthening walls and restoring damage;
• replacement of floors;
• bathroom renovation;
• kitchen renovation;
• painting;
• aesthetic and functional home improvements.

Energy interventions may include:

• replacement of windows and door frames;
• thermal insulation of roofs, terraces and roof structures;
• installation of a solar water heater;
• renewable energy systems for hot water;
• heating and cooling systems, including heat pumps and biomass boilers.

Income criteria

Income criteria, according to Greek media reports, will be based on the logic of the program “Σπίτι μου 2”. The following limits are tentatively stated:

• to 25,000 euros for single applicants;
• to 35,000 euros for couples who are married or have a cohabitation agreement, with an increase 5,000 euros for each child;
• to 39,000 euros for single parents, with an increase 5,000 euros for each child after the first.

Important: the final criteria must be recorded in the official decision of the program. So far we are talking about the parameters that are published by Greek economic publications and media with reference to the government plan.

How will the procedure take place?

The process must take place in two stages. The first stage, planned for June 15is a preliminary check through gov.gr. Owners will be able to check whether the property meets the basic criteria. According to Ta Neafull submission of applications for funding is expected in early September.

A new important detail of the program is that the money must be transferred to blocked accountso that citizens can receive funding after submitting the relevant invoices and documents. This should speed up settlements with contractors and reduce the problem when the owner formally has a subsidy, but practically no money to start repairs.

The main condition: the apartment must be returned to rent

The key point of the program is not just to renovate old housing at public expense, but to return it to the market long term rental. Therefore, the owners will not be able to leave the apartment closed after renovation.

According to preliminary data, the first lease agreement must have a term of at least three years. The Ministry is also considering the possibility of establishing rent ceiling. If the tenant moves out early, the owner will have to re-let the property for the remaining period without raising the rent.

This is where the main political nerve of the program lies. The state is trying not just to distribute money for repairs, but to force closed apartments to work for the housing market. In a country where thousands of properties sit empty and young families and renters count every euro, this logic seems sound. The only question is whether there will be enough control to prevent the program from turning into just another renovation scheme at budget expense with minimal effect for tenants.

Editorial comment

“Ανακαινίζω” could be a useful program if it were truly tied to long-term leases, transparent criteria, and control of hiring costs. In Greece, the problem is not only the old housing stock, but also the huge number of closed apartments that have not come onto the market for years.

But subsidies alone will not solve the housing crisis. If the state pays for the repairs, but the rent after that still turns out to be unaffordable, the program will become a gift to the owners, and not a help to society. Therefore, three things will be key: real rental control, mandatory long-term delivery and verification that the money actually went towards repairs and did not disappear into the usual Greek fog of “papers and contractors”.

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