The second phase of Greece’s affordable housing loan scheme, My Home 2, is taking off at full speed, offering thousands of young Greeks a path to homeownership amid soaring property prices. Designed as a development-oriented initiative, the program targets individuals aged 25 to 50, providing low-interest loans to help them purchase their first home.
Just under three months since its launch, the program has already committed 520 million euros— a quarter of its total 2 billion euros budget. So far, 4,256 households have secured the opportunity to own their first home, marking a promising start.
Early data indicates the program is particularly beneficial for low- and middle-income earners. The average annual income of approved borrowers stands at just 21,300 euros, underscoring the scheme’s social impact.
A key enhancement in My Home 2 compared to its predecessor is the expanded age eligibility, now covering applicants up to 50 years old (compared to 39 in My Home 1). This broader inclusion is evident in the demographics of those approved, with the average borrower age at 38.
However, the picture isn’t entirely rosy. According to the annual report by the Bank of Greece, while My Home 2 improves access to housing for vulnerable groups, it also intensifies demand for older properties that meet the program’s criteria — a segment already facing significant price hikes.
As a result, newly built properties, which are often more expensive and lie outside the program’s scope, remain out of reach for most, limiting their integration into the housing mix.
The central bank warns that this demand imbalance could exacerbate affordability issues. Prices for new homes are already on an upward trajectory, driven by rising energy and construction costs, geopolitical uncertainty, and longstanding bureaucratic hurdles related to property transfers and frequent regulatory changes. These factors continue to discourage investment in new developments.
Meanwhile, external demand for Greek real estate is on the rise with Golden Visa applications up by 11.3%. Home prices surged 8.7% in 2024, following jumps of 13.9% in 2023 and 11.9% in 2022.
To address the deepening housing crisis, the central bank advocates for broader policy reforms. These include simplifying and accelerating real estate transaction processes and implementing a national strategic plan aimed at bolstering economic activity in regional areas.
