In early June, barring an unforeseen event, the new program “Renovate.”

The goal of this program is to substantially recover costs and return thousands of property currently sitting unused or in poor condition to the market.

Compared to the previous version, which had limited appeal, the new program attempts to act as a housing policy tool with a more comprehensive approach.

Two mandatory strands

The key change is the new structure. Specifically, the program is divided into two strands including renovation and energy upgrades, both of which are mandatory in the sense of making substantial interventions rather than superficial solutions.

What is covered by refurbishment

The refurbishment strand includes essential work that makes a property fully functional:

  • plumbing and electrical
  • masonry reinforcement
  • repairing damage
  • flooring replacement
  • complete renovation kitchen and bathroom
  • painting

These are interventions that until now have been a major obstacle for many owners.

Energy upgrades on softer terms

The second strand is for energy upgrades, with more flexible requirements compared to the “Execonomy” scheme.

Included:

  • new frames with thermal insulation
  • installation of a solar water heater or other renewable energy sources
  • replacement of heating and cooling

Energy Upgrade

The energy upgrade component completes the programme, with more flexible conditions than actions such as the ‘Save’ scheme. The interventions concern the replacement of windows with thermal insulation, the installation or upgrade of solar water heaters or other renewable energy systems for hot water, as well as changing heating and cooling systems, such as heat pumps or biomass boilers. At the same time, targeted thermal insulation is also planned. In order for the intervention to be approved, at least three works are required, two of which must be basic works of low technical difficulty.

The allocation of the budget is predetermined and gives clear weight to the substantial upgrade of the property. The largest part, i.e. 60% to 80%, is directed to renovation work, while the remaining 20% to 40% is for energy improvements. This model ensures that the property becomes functional first, without falling behind in energy efficiency.

A key element is the obligation to energy upgrade the property by at least one category. Homes that join the program must be energy improved from low categories, such as C to H, which is demonstrated through the Energy Performance Certificate (EPC) before and after the work.

In terms of funding, the new “Renovate” has a total budget of 500 million. It aims to renovate 15,000 to 20,000 homes, mainly old apartments. The subsidy is calculated per square metre, with a ceiling of 300 euros/sq m, while total aid can reach up to 36,000 euros per property.

The basic subsidy rate is set at 80%, with the possibility of increasing through increments. An additional 5% is provided for properties in rural and insular areas, and another 5% for special groups such as three children, parents and people with disabilities. These increases combine to bring the rate up to 90%, significantly reducing the same participation rate.

The expansion of eligible properties is also significant, as the program covers both foreclosed and inhabited properties across the country. In the case of closed homes, the condition is either ownership or long-term rental for at least five years. A similar obligation applies to principal residences.

Special provision is made for the use of real estate, as Airbnb-type short-term rentals are prohibited for five years after completion of the work. This regulation aims to boost long-term rentals and increase the availability of housing.

The income criteria are broadened, covering a larger part of society. The limit goes up to 25,000 euros for single people and 35,000 euros for couples, with an additional 5,000 euros for each child. There are also special arrangements for single-parent households, and total family income is taken into account.

At the same time, there is no restriction on the number of applications per owner nor any age limit, which facilitates participation and reinforces the goal of increasing the supply of housing.

The need for such interventions remains strong as the cost of housing continues to squeeze households. Increases in key materials such as iron, aluminum and wood, combined with high energy costs, drive up construction costs and, by extension, sales and rental prices.

Eurostat data show that Greece ranks among the top in Europe for households spending more than 40% of their income on housing. Despite small improvements compared to previous years, the burden remains significant, especially in relation to purchasing power.

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