A leading role in dealing with it housing crisis in the country the return to real estate market of at least 700,000 homes that are currently closed/empty for a number of years.
According to data compiled by the Institute for Research and Social Change Eteron, Greece has the highest percentage of vacant homes in Europe, with large concentrations in urban centers. In 2011 the percentage of vacant houses in Municipality of Athens was 31%, in Municipality of Piraeus 28% and in Municipality of Thessaloniki 28.2%.
How much these houses are “missing” from the market is reflected in rental prices, which have shot up by 40%-50% in recent years, squeezing the purchasing power of households.
At the same time, a large part of the apartments available for rent today are of low quality, old and hardly ever renovated. According to her data electronic property management platform Protio, 65% of the apartments available for rent today have never been renovated. At the same time, 89% of the country’s total real estate is over 25 years old, since only 11% of the country’s total housing stock has been built since 2000, a consequence of the financial crisis that ensued.
“50% of people who come to us to help them make the most of their property, either through selling it or renovating and renting it out, keep it closed for years. It is therefore obvious that there is a problem in this part, because by stimulating the supply, the current housing crisis could be tackled and the options for tenants could be multiplied”, Mr. Antonis Fiorakis reports to “K”.CEO of Protio.
The depreciation of an investment e.g. 25,000 euros to renovate an apartment can be achieved in just 3-4 years.
These properties are usually inherited, with the heirs not needing them for housing, but at the same time lacking the required money to renovate and exploit them. The result is that they remain closed for years, with the cost of reopening them increasing annually as a closed property accumulates losses.
The above demonstrates the need for policies to stimulate supply in the housing market and improve the quality of the stock. In this context, Protio is promoting a new service in the market, for owners who have old and closed apartments and wish to renovate and to them rent. First, an initial estimate of the cost of the work is made and then, if more information is provided by the interested party, the exact cost of the work is calculated, as well as the expected rent after the completion of the process. At the same time, the possibility of subsidizing the work through the new program launched by DYPA, the “Renovate – Rent”, which offers the possibility of subsidizing up to the amount of 10,000 euros and up to 40% of the expenses that will be incurred. The condition is that the property has been declared closed for at least the last three years, while the interested parties should not have received a subsidy from another energy upgrade/renovation program in the previous five years. The beneficiaries are expected to reach 12,500.
As Mr. Fiorakis explains, if an owner is interested in making use of his closed apartment, “we can undertake the entire project, as well as the work, as we work with engineers and architectural offices to formulate the relevant renovation proposals. After the agreement is signed, work begins, with two main advantages for the owner. First, the completion of the renovation must be completed within 70 days, with clauses in case of delay. At the same time, the agreed price is “locked” and cannot be changed, even if in the end the cost exceeds the original budget”. Especially this last element is particularly important, as it is a fixed rule of any renovation work to exceed the initial cost.
According to Protio, the depreciation of an investment e.g. 25,000 euros for the renovation and energy upgrade of an apartment can be achieved in just 3-4 years, making this option particularly advantageous compared to leaving the property closed and unused. In 2023 Protio worked with over 15,000 property owners to evaluate their properties, while over 10,000 real estate investors searched for property to buy and develop through the platform.
