The initiative, known as “social land-for-housing,” aims to address the country’s deepening housing shortage by partnering with private developers.
Prime Minister Kyriakos Mitsotakis is expected to unveil the plan during his speech at the Thessaloniki International Fair, while the draft legislation is set to be tabled in Parliament next week, according to Social Cohesion and Family Minister Domna Michailidou.
Under the scheme, public land and properties that have remained idle for years will be handed over to private contractors for residential development. Thirty percent of the new homes will be reserved for young families, large households and single-parent families, who will be able to rent them at below-market rates. The remaining 70 percent will stay in the hands of private investors, thereby increasing the overall housing supply while ensuring developers recover their costs and secure a profit.
The government’s initial target is the construction of at least 5,000 housing units on properties owned by the state and local authorities. Ten sites have already been earmarked, including parcels in Athens suburbs such as Kifisia, Argyroupoli, Nea Ionia and Paiania, as well as in the cities of Larissa, Xanthi and Volos. Once the legislation is approved, an international tender will be launched to select contractors.
Beneficiaries of the program will be chosen based on income, property holdings, family composition and number of children, with priority given to young couples under the age of 39 and households with limited means. In addition to affordable rents, tenants will also have the option to purchase their homes after ten years of consistent leasing.
The model borrows from European best practices, where public–private partnerships have been used to deliver affordable housing not as a vehicle for speculation but as a social policy tool. By combining state assets with private sector investment, Athens hopes to ease pressure on a housing market that has become increasingly inaccessible for young and low-income citizens.
