The initiative, known as Social Value Exchange, is pitched by the government as a smart way to put unused state property to work. Minister of Social Cohesion and Family Domna Michailidou recently explained that developers will acquire rights to public land via competitive tender. In return, they must hand over a portion of the newly built or renovated homes to the state for allocation to eligible low-income households – while the remainder can be marketed commercially.

According to reports, rents for the “affordable” units will be capped at around 30% of the average national wage. With the average gross salary currently standing at €1,342 per month, that would mean a maximum monthly rent of about €402. However, tenants would no longer be entitled to housing allowance, raising questions about whether the scheme truly benefits those in need, especially as the capped rent is based on national averages rather than the tenant’s actual income.

Eligibility will be assessed by the state welfare agency OPEKA, based on income and social criteria defined by ministerial decree. If selected, tenants will lose any housing allowance they currently receive.

The plan also includes a rent-to-own clause: after ten years of consistent rent payments, tenants will have the option to purchase their homes. According to the bill, this applies specifically to apartments allocated under the social housing quota.

Michailidou said the scheme will prioritise families with children, following previous housing initiatives like “My Home I” and “My Home II,” which targeted young couples and those under 50. Applications and management will be handled through a central digital platform, with no role for developers in the selection process – though they may end up managing the buildings once completed.

A win-win or a giveaway?

The state claims this is a fair deal: it provides the land, and private developers fund the construction. In return, developers receive full ownership of the commercial portion of the project and may also be contracted to manage the social housing side – collecting rent, handling maintenance, and so on.

The state retains ownership of at least 30% of the homes, though this could rise depending on the value of the land and other planning factors. According to State Minister Akis Skertsos, this model aims to attract longer-term property developers, like those seen in other European countries, who are open to lower returns but more stable, long-term investments in affordable housing.

As he puts it:

“What’s missing in Greece is a market of long-term residential developers who treat affordable housing as a distinct investment product – one with less profit margin but more stability.”

He argues that public-private collaboration is the only way to address the country’s housing challenges at scale, and cities as well as municipalities are expected to participate by offering their own underused property.

Pilot projects and target locations

The first major pilot project is expected to be at the former CHROPEI industrial site in Piraeus, a state-owned complex of nearly 18,000 square metres. The bill even includes a special clause for transferring the land to the state to fast-track its redevelopment for social housing.

Other sites already earmarked include:

  • Two EFKA-owned plots in Argyroupoli (2,375 m² total)
  • The former Anatolia factory in Nea Ionia (18,000 m²)
  • The historic YFANET site in Thessaloniki (19,500 m²), currently under occupation

In addition, a wide range of public land across Greece – including 378 plots managed by the Ministry of Finance’s Public Property Secretariat – has been catalogued for potential use. These include:

  • 9 properties in central Athens
  • 5 in Thessaloniki
  • 81 across the Cyclades
  • 36 in Lefkada
  • Dozens more across northern and central Greece, including Kilkis, Kavala, Xanthi, Serres, and Ioannina

36,000 properties under review

A core component of the scheme is the potential redevelopment of around 36,000 properties currently held by the state real estate company ETAD. Around 10,000 to 12,000 of these are to be assessed and categorised by the end of the year, with at least 6,500 officially valued and roughly 1,000 prepared for development. The process is being carried out by nine specialist firms selected via international tender, under the supervision of a project manager.

The idea, according to Skertsos, is to create mixed-use neighbourhoods where owners, renters, and lower-income tenants live side by side in modern, well-maintained buildings managed under long-term contracts – a significant shift from current housing models in Greece.

Expanding to student housing?

Skertsos also floated the possibility of applying this model to university housing, especially as non-state universities are poised to increase competition. Public universities, he said, would be well advised to identify and make use of their own dormant properties to attract students with improved living conditions.

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