New Renovation Subsidy Program to Launch in September to Boost Housing Supply

The new "Anakainizo 2026" program is set to launch in September, offering subsidies of up to 90% to homeowners. The objective of the €500 million ($545 million) program is the renovation of old properties—primarily those currently vacant—so they can be promptly offered for rent, thereby increasing the available housing supply in the market.

Delays and Financing

The launch of the program, which was originally expected earlier, has been rescheduled for September. The reason for the postponement is the extension granted to the "Spiti mou II" (My Home II, Greece’s low-interest housing loan program for young people) until the end of August, providing beneficiaries more time to locate properties and sign loan agreements. These loans, totaling €2 billion ($2.18 billion) from the Recovery Fund (the EU's Recovery and Resilience Facility), will be disbursed through the Hellenic Development Bank (Ελληνική Αναπτυξιακή Τράπεζα).

Regarding "Anakainizo," the €500 million ($545 million) in funding comes from ESPA 2021-2027 (the National Strategic Reference Framework, the main EU structural fund for Greece), aligning with the European Commission's new priority for affordable housing, as stated by the Deputy Minister of National Economy, Nikos Papathanasis.

Subsidy Levels and Interventions

The program subsidizes the renovation and light energy upgrading of old residences that were granted building permits by December 31, 1990, and have a surface area of up to 120 sq.m.

The subsidy reaches up to €36,000 per property (with a maximum cap of €300 per sq.m.), covering up to 90% of the total cost. General renovation works, such as the replacement of bathrooms, kitchens, window frames, and electrical or plumbing interventions, will be subsidized at a rate of 60% to 90%. Respectively, energy-related interventions—such as the installation of heat pumps to replace old air conditioning units and the installation of solar water heaters—will be subsidized at rates between 20% and 40%.

The Two Phases of the Program

Implementation will take place in two stages:

• First Phase: Concerns exclusively homes that are currently vacant. A strict condition for receiving the subsidy is that the property, following its repair, must be placed on the rental market for at least 5 years at a fixed rent.
• Second Phase: Will concern owner-occupied residences, with the goal that they can be sold at a later date, further expanding the housing supply.

Eligibility Criteria

To join the program, interested owners must meet specific criteria, which are characterized as more realistic compared to previous programs:

1. Income: The limit is set at €25,000 for single individuals and €35,000 for married couples (without children). For couples with children, the limit is increased by €5,000 per minor child.
2. Real Estate Assets: The total "objective value" (the tax-assessed value used by the Greek state) of the applicant's real estate assets must not exceed €300,000.
3. Ownership Percentage: The applicant must hold at least 50% of the usufruct or full ownership of the eligible property.