Athens confronts its empty apartments

• 10 October, 25

As Greece’s housing shortage worsens, the government is rolling out new initiatives to address the housing crisis in Athens and other major cities. Tight supply and soaring rents have made it increasingly difficult for many families to find affordable homes.

Over 5,000 Apartments in Athens Sit Empty

According to the latest survey by the Athens and Attica Association of Realtors, around 5,000 apartments in Athens are currently sitting vacant. Most of these properties belong to foundations or institutional estates, many of which have unclear ownership or management status.

Over 450,000 Inheritances Abandoned, Thousands of Properties “Asleep”

The Greek Ministry of Finance has recently relaunched a nationwide audit of institutional and unclaimed estate assets. Between 2013 and 2018, around 450,000 inheritances were officially abandoned, leading officials to suspect that many valuable properties remain unregistered or forgotten.

Finance inister Kyriakos Pierrakakis confirmed that authorities have already identified 2,000 inactive institutions and 7,000 unclaimed estates.

“We first need to know exactly what assets we own,” Pierrakakis said, emphasizing that much of Greece’s potential wealth remains off the books.

To address this, the government plans to create a central authority to manage all foundation and estate-owned assets, preventing them from lying idle, being sold off cheaply, or mismanaged.

Idle Foundation Properties See Rental Income Drop by 90%

Many charitable foundations and non-profit institutions own large real estate portfolios but fail to utilize them effectively. For instance, the Asylum for the Incurable manages around 1,000 inherited properties, most of which have remained vacant for years.

Its rental income has plunged from €3.57 million in 2012 to less than €1 million in 2021.

Authorities are currently investigating cases of below-market sales, symbolic rental contracts, and potential mismanagement.

Tax Incentives to Encourage Homeowners to Rent Out Empty Properties

To revive the rental market, the Greek government is introducing new tax incentives for landlords who lease out their vacant homes.

Under the new law:

• Rental income will be tax-free for three years if the property was previously vacant.
• Even if a tenant terminates the lease early, the tax exemption remains valid as long as a new tenant is found within three months.
• Public sector employees, such as teachers and doctors, can sign short-term leases without losing tax benefits.
• Families with three or more children will receive progressive tax reductions based on property size, starting from 140 square meters.

These measures aim to boost housing supply, improve market liquidity, and help young and large families find affordable rental housing.

ENFIA Property Tax Reform Expands

Meanwhile, the government continues to reform the ENFIA property tax (Unified Real Estate Ownership Tax). The gradual phase-out of ENFIA has now extended to Nea Vyssa, a small border town with only 1,700 residents.

The Ministry of Finance also plans to launch an online tool allowing taxpayers to instantly check their tax reductions under the new system.

By combining asset audits, tax incentives, and regulatory reforms, the Greek government aims to ease the housing shortage in Athens. As thousands of empty apartments return to the market, experts predict a potential rebalance in supply and demand.

In the long run, these policies are expected to revitalize idle assets, reduce rental pressure, and inject new energy into Greece’s real estate sector.

Cre: ekathimerini