Their the Minister of Social Cohesion and Family, Sofia Zaharakis, analyzed the main axes of the government’s planning to solve the acute housing problem. Speaking at the 24th Prodexpo conference, which is being held at the Athens Concert Hall and ends today, October 26, Mrs. Zacharakis noted that a total of 2.2 billion euros will be allocated for the housing policy.
«Large projects are the social compensation programs and I save – renovate» underlined the Minister of Social Cohesion and Family, Sofia Zaharaki during the discussion moderated by Elli Kakoullou, Second General Manager of Real Estate Bank & Group National Bank of Greece.
As Mrs. Zacharakis explained, through the social compensation program, public properties will be utilized in which social housing will be built. Correspondingly, the Save Renovate will incentivize owners of closed apartments to open them up and put them on the market.
The “My Home” program
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Referring to the program “My Home” the Minister spoke about great response from new couples, who rushed to take advantage of it, approaching the banks and disbursing loans in a very short period of time. “848 loans have already been disbursed since the summer, 1,523 applications are at the stage of signing the contract and another 9,532 have been integratedsaid Mrs. Zacharaki. It also announced that it has increased by 5m. euro the budget of the housing and work program for homeless and vulnerable groups of the population, while the “Coverage” program for 1,000 apartments, in which 44 municipalities participate, is also progressing.
Reflecting on the situation that has developed in our country, Mr Ilias Nikolaidis, Senior Editor of DiaNEOsis, noted that 35% of the average household’s income goes to housing needs, a figure that rises to more than 40% for vulnerable households, while in big cities one in three households pay more than 40% of their income. These are the highest percentages both in the E.U. as well as in the OECD countries, with Greece still having the highest rates of home ownership. In particular, seven out of ten Greeks own property and six out of ten own their own homes.
According to Mr. Nicolaidis, each country must find its own model for dealing with the housing problem, taking seriously into account climate change, which puts limitations on the building stock. “We are the country with the most real estate per capita in the OECD. We have to make use of the existing properties, the empty houses” emphasized the Senior Editor of DiaNEOsis. In this direction, as he said, we need much more data for all areas, for spatial planning, for prices, while the poorly recorded property of the municipalities puts obstacles in the implementation of many policies.
From the side of Phil Jenkins, Founding Partner της Centrusspoke of a cost of living crisis in Europe, which has hit low incomes hardest, increasing the need for social housing at a time when supply in the property market is shrinking. As he said, in the United Kingdom, 100 billion euros have been allocated through a Public-Private Partnership (PPP), for social housing, while successful examples of the use of private capital to deal with the problem are the Netherlands and France.
Mr. Jenkins pointed out that the role of the public sector is to create the framework within which private capital will be invested with low returns but stability. To regulate who can invest in social housing and who will undertake the maintenance of these properties. Apart from PPPs, a solution to the housing problem can also be provided by the public and municipalities, by providing social housing.
Regarding what our country can do, the Founding Partner of Centrus argued that it has an opportunity to start from scratch and create a model based on the best of Europe. In this direction, the government should solve the issue of spatial planning and urban planning, but also set the rules to form a mix of funds and subsidies.
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Solving Greece’s Acute Housing Problem: A Comprehensive Approach
The Greek government has announced a significant allocation of 2.2 billion euros to tackle the country’s acute housing problem. Minister of Social Cohesion and Family, Sofia Zaharakis, outlined the main axes of the government’s planning to address this critical issue. The comprehensive approach involves large projects, social compensation programs, and innovative solutions to incentivize owners to open up their properties and invest in social housing.
Historical Context: Antiparochi and Its Impact on Athens
Greece’s housing policy has a rich history, dating back to the 1920s when the Antiparochi system was introduced. This system, which started in 1929, had a profound impact on the shape of Athens, architecturally, economically, and socially [[2]]. Despite its limitations, Antiparochi laid the foundation for Greece’s housing policy, which has evolved over the years.
Current State of Housing in Greece
Greece lacks a coherent and concrete social housing policy for vulnerable groups [[3]]. The housing phenomenon has been mostly a matter of individual initiative, with the government playing a limited role. However, the current situation is unsustainable, with 35% of the average household’s income going towards housing needs, rising to over 40% for vulnerable households [[Query]].
The ”My Home” Program: A Step in the Right Direction
The “My Home” program, launched by the government, has received a significant response from new couples, with 848 loans already disbursed since the summer. The program aims to provide affordable housing solutions to young couples, addressing the country’s high rates of home ownership. Greece has one of the highest rates of home ownership in the OECD, with seven out of ten Greeks owning property and six out of ten owning their own homes [[Query]].
Social Compensation Programs and Save-Renovate Initiative
The government’s social compensation program will utilize public properties to build social housing, while the Save-Renovate initiative will incentivize owners of closed apartments to open them up and put them on the market. These programs aim to increase the supply of affordable housing and reduce the pressure on vulnerable households [[Query]].
The Role of Public-Private Partnerships
Phil Jenkins, Founding Partner of Centrus, highlighted the importance of public-private partnerships in addressing the housing problem. The UK’s allocation of 100 billion euros through a Public-Private Partnership (PPP) for social housing is a successful example of how private capital can be invested with low returns but stability [[Query]].
Way Forward: Creating a Framework for Social Housing
Greece must find its own model for dealing with the housing problem, taking into account climate change and the need for data-driven spatial planning. The public sector must create a framework within which private capital can be invested with low returns but stability. This requires regulating who can invest in social housing and ensuring accountability [[Query]].
the Greek government’s comprehensive approach to addressing the acute housing problem is a step in the right direction. By allocating significant resources, introducing innovative programs, and leveraging public-private partnerships, Greece can create a more sustainable and equitable housing market. As the National Analytical Study on Housing notes, Greece’s housing policy has been limited in scope and effect, and it is time for a paradigm shift <a href="https://fra.europa.eu/sites/default/files/frauploads/248-GRHousing.pdf”>[[1]].
Solving Greece’s Acute Housing Problem: A Comprehensive Approach
Greece is facing an acute housing problem, with homeownership rates dropping to 70% and many privately owned homes getting old [[1]]. The government has acknowledged the issue and has allocated 2.2 billion euros for the housing policy. The Minister of Social Cohesion and Family, Sofia Zaharakis, highlighted the main axes of the government’s planning to solve the acute housing problem, including large projects such as social compensation programs and “I save – renovate” [[2]].
The “My Home” Program
The “My Home” program has seen a great response from new couples, with 848 loans already disbursed since the summer, 1,523 applications at the stage of signing the contract, and another 9,532 integrated [[3]]. The program aims to incentivize homeownership among new couples, providing them with access to affordable housing.
Social Housing
Greece has the highest percentage of closed homes in Europe, with 700,000 vacant houses that could be opened up to address the housing shortage [[2]]. The social compensation program aims to utilize public properties to build social housing, while the “Save Renovate” program incentivizes owners of closed apartments to open them up and put them on the market.
Challenges in the Housing Market
Greece faces significant challenges in the housing market, with 35% of the average household’s income going towards housing needs, rising to over 40% for vulnerable households [[3]]. The country has the highest rates of homeownership in the OECD, but this has led to a shortage of available housing units, with an estimated 210,000 units needed to meet demand [[3]].
The Role of the Public Sector
The public sector has a crucial role to play in addressing the housing problem, by creating a framework for private capital to invest in social housing with low returns but stability [[3]]. This includes regulating who can invest in social housing and who will undertake the maintenance of these properties. Public-Private Partnerships (PPPs) have been successful in other countries, such as the UK, Netherlands, and France, and could be a viable solution for Greece.
The Need for Data and Spatial Planning
To address the housing problem, Greece needs more data on all areas, including spatial planning and prices [[3]]. The poorly recorded property of municipalities puts obstacles in the implementation of many policies, and addressing this issue is critical to finding a comprehensive solution to the housing problem.
Conclusion
Greece’s acute housing problem requires a comprehensive approach that addresses the root causes of the issue. The government’s plans to invest in social compensation programs, “I save – renovate”, and the “My Home” program are positive steps towards addressing the problem. However, more needs to be done to address the lack of available housing units, including utilizing vacant homes and promoting social housing through PPPs. With a coordinated effort from the public and private sectors, Greece can find a solution to its acute housing problem.
