Rents in Greece remain persistently high because of a deep imbalance between supply and demand, according to Stratos Paradias, president of the Panhellenic Federation of Property Owners (POMIDA). He said a shortage of small homes, rising demand and uncertainty among landlords are the main drivers of the problem.
Speaking in an interview with ERTnews on the morning of Sunday, September 13, Paradias said the housing market is being squeezed by two parallel trends. Urbanisation continues to push up demand for homes, while households have increasingly split into more separate housing units.
He explained that in the past, two or even three generations could live under one roof, but today grandparents, couples and separated households each need their own homes, creating greater demand for individual housing.
Shortage of small homes
At the same time, supply has failed to keep pace with demand, particularly for smaller properties. Paradias said the small homes most sought by tenants have not been built in sufficient numbers over the past 20 to 25 years, intensifying pressure on the market.
He pointed to constantly rising demand alongside growing maintenance costs for property owners. Paradias argued that more incentives are needed to bring homes currently sitting empty back into the long-term rental market.
He specifically called for tax incentives for owners, including for properties that remain vacant but could be offered for long-term lease. One incentive already in place is a three-year tax exemption for certain homes that return to the long-term rental market.
Landlord uncertainty over tenants
Paradias placed particular emphasis on the uncertainty landlords face when choosing a tenant. He said owners often have no way of knowing a prospective tenant's financial reliability, and there is currently no quick, straightforward way for tenants to prove their solvency.
For that reason, POMIDA is calling for the introduction of a tenant solvency certificate, which Paradias said could change how the rental market functions. The idea, as he described it, is that a tenant with certified financial reliability would gain an advantage in the search for housing.
He said the goal is to reverse the current dynamic, so that instead of tenants chasing landlords, landlords would be chasing tenants.
Mandatory bank payment of rent
The interview also addressed the mandatory payment of rent through the banking system and its link to rent-return measures.
Paradias made clear that bank payment of rent is not in itself a tax incentive for owners. He argued that before the measure can be applied, the Property and Real Estate Management Registry (MIDA) must first be completed.
A key part of the process, he explained, is that the bank account into which each rent payment is made should be declared on the leasing platform, allowing transactions to be checked.
POMIDA has asked for an extension to the deadline for mandatory bank payment of rent, arguing that without the completion of the necessary infrastructure, the measure cannot work effectively.
Paradias also called for exceptions in cases of genuine difficulty with bank payment, such as very small rents, owners over the age of 70, and rents that have been seized by court order.
He said POMIDA was not asking for any favours, only for reasonable and obvious measures, and insisted the policy must first be technically and practically workable.
Teachers and seasonal workers struggle to find housing
The interview also raised the acute problem facing teachers, professionals and seasonal workers who are required to relocate to islands or provincial areas without having secured housing.
The problem is especially severe in areas with heavy tourist activity, where homes that could otherwise go to teachers or other workers are often instead directed toward short-term rental.
Teachers can be notified only days before the start of the school year that they must report for duty on an island or in a provincial area, and are then expected to find housing immediately in a market with limited availability.
Paradias said the problem is particularly acute in certain areas and argued that the state should work together with local authorities to address it.
He said some municipalities have already taken steps to help, including leasing small hotel units to provide temporary housing for workers. However, he stressed that such initiatives cannot be left solely to the goodwill of individual municipalities.
