Greece Unveils Plan to Create Affordable Housing Through Public-Private Partnerships

In response to rising housing costs and mounting socioeconomic pressures on Greeks, the Greek government has launched an initiative to boost the supply of affordable housing by partnering with private developers to build on publicly owned land.

Housing costs in Greece—especially in major cities like Athens and Thessaloniki—have soared due to limited supply, a surge in short-term rentals, and years of underinvestment in public housing. Meanwhile, many state-owned buildings sit empty, neglected, or inaccessible.

Greece hopes to address the problem by leveraging public land and incentivizing private-sector construction. A new draft law from the Ministry of Social Cohesion and Family, which is currently in public consultation until August 20, proposes a sweeping framework to deliver low-cost housing to young people, low-income families, and others at risk of housing exclusion. It seeks to activate thousands of unused or underutilized public properties across the country by offering them to private contractors in exchange for constructing modern, mixed-use residential buildings.

The Model for Affordable Housing

The plans specifies that developers will cover the construction costs, and in return, they receive partial ownership of the completed building—between 30% and 70%, depending on project terms. The remaining units are handed over to the state and designated as affordable homes.

The homes will be made available to eligible citizens through: income-adjusted rents, below-market sale prices, and rent-to-own schemes.

The program aims to provide 5,000 new housing units in the coming years, with a focus on people under 39 years old and young couples. The goal is not just to alleviate housing pressure but to revitalize public assets and stimulate responsible private investment.

To attract serious investors while maintaining public oversight, the proposed bill includes: rights for developers to manage affordable units (rent collection, maintenance, etc.) for a defined period, the option for shared ownership between the state and private contractors, the creation of a centralized digital registry tracking tenders, contracts, and project implementation—ensuring transparency and accountability.

A minimum of 30% of housing in each project must be allocated as affordable, with clear quality standards and eligibility criteria.

Broader Social Reforms Included

The legislation also introduces structural reforms and support mechanisms, such as:

• A new General Directorate for Demographic and Housing Policy, coordinating housing access, youth support, and demographic policy.
• Enhanced criteria and safeguards for rent-to-own arrangements, managed by Greece’s national welfare agency (OPEKA).
• Establishment of short-term residential care units for people with disabilities, offering temporary support and relieving pressure on caregivers.
• Equal legal status for parents with three children, aligning them with large family protections under Greek law.