Greece has formally launched a new entity to manage and commercialize military-owned real estate, marking the latest step in the government's effort to unlock the value of underutilized public assets while addressing longstanding housing shortages for armed forces personnel.
A joint ministerial decision published in the Government Gazette approves the organizational framework of the Armed Forces Real Estate Development Agency (FAAED), setting out its governance, structure and staffing. The agency was established under Law 5223/2025 and will operate as a private-law legal entity under the supervision of the Ministry of National Defence through the Hellenic National Defence General Staff.
The agency's primary mandate is to develop and commercially exploit military properties that are no longer required for operational purposes. In addition to assets owned by the National Defence Real Estate Fund, it will also be able to manage properties belonging to other state-supervised entities or third parties when assigned to it. Officials expect the new body to use modern financial and legal instruments to generate revenue from real estate development and asset management. The proceeds will be directed primarily toward the construction and financing of military housing, while also supporting broader operational requirements of Greece's armed forces. The government also aims to streamline the management of military property, strengthen transparency and accountability, and introduce a more flexible administrative model.
The agency will be governed by a five-member board appointed by the Minister of National Defence. The chair will be selected following a hearing before the relevant parliamentary committee, while the remaining members will include a senior military officer, the director of the National Defence Real Estate Fund and two full-time executive members. The board will oversee the agency's strategy, approve its business plan and budget, and be responsible for its overall management. Its operational structure will be organized around three main divisions covering finance and legal affairs, real estate development and asset management, and human resources and administration.
Together, these units will oversee budgeting, legal support, public tenders, investment planning, technical preparation of properties, investor relations, personnel management and information systems.
A central responsibility of the agency will be the preparation and regular revision of a strategic real estate development plan. This will include evaluating the characteristics of individual properties, assessing alternative development scenarios, preparing sites for investment and identifying the most commercially viable use for each asset.
The organization will be staffed by both military personnel and civilian specialists. Initial plans provide for 30 military positions, including 17 officers and 13 non-commissioned officers with expertise in engineering, law, economics, information technology and geography. A further 15 permanent civilian employees are expected to be recruited, including engineers, economists, lawyers, foresters, communications specialists, IT professionals and administrative staff. The framework also allows the agency to hire external advisers and consultants for specialist studies and project support.
The creation of the FAAED reflects a broader government strategy to treat military real estate as a productive asset rather than a passive holding, using commercial development to generate long-term funding for defence infrastructure and improve housing conditions for military personnel.
