Renovate-to-rent subsidies

The government and the realty market are pinning significant hopes on the success of the “Renovate-Rent” program (“Anakainizo-Enoikiazo” in Greek), in order to increase the supply of available apartments for long-term renting. 

The program is already under way and interest has been notable so far. It subsidizes a number of costs related to the renovation of houses, in order to make them habitable and available for long-term rental of at least three years, which is also the basic condition for securing the subsidy. Among the conditions of the program is that the subsidized properties have been declared closed/vacant within the last three years.

“Anakainizo-Enoikiazo” aspires to renovate up to 12,500 houses, through a subsidy totaling 50 million euros. The ceiling of the subsidy will amount to €10,000 and up to 40% of the total expenditure, with the possibility of an advance payment of 50%. For the first time, the subsidized expenditure concerns both functional repairs and renovation works.

For instance, the costs that can be included are work for the renovation of a bathroom or kitchen, replacement of the main entrance and internal doors, replacement of floors, replacement or repair of electrical and plumbing installations, structural elements, plastering, tiles, painting and other similar works. Also, costs for the purchase of the necessary materials, costs for any required social security contributions for the works and engineer costs for any issuance of permits, approvals or preparation of studies are covered.

Although the cost of a renovation varies significantly, depending on the type of work or even the choice of a professional, it is estimated that the average price ranges between €300 and €500 per square meter, but it can easily approach even the €800/sq.m. depending on the quality of materials and the scope of the work. 

Obviously the older the property, the more it is recommended to implement changes to the plumbing or electrical systems in order to avoid costly repairs in the future. Also, the larger the area of the property, the higher the cost.