Athens Looks to Add Extra Floors to Ease Rental Shortage

At a recent "Dialogues for Athens" conference, Prime Minister Kyriakos Mitsotakis floated a plan to permit one or two extra stories on new rental-only buildings, aiming to boost the supply of affordable homes in the capital. This proposal would sit alongside the Build-Rent program introduced in June 2026, which lets developers own and rent out units tax-free for a minimum of ten years at predetermined rates. A joint ministerial decree must still define how rents are set, who qualifies, and the responsibilities for tenant contracts and maintenance.

The Council of State has recently ruled that blanket zoning bonuses under the New Building Code are unconstitutional without area-specific assessments, prompting government spokesperson Pavlos Marinakis to suggest the extra-floor incentive be targeted to certain districts. Comparable models exist in England and Madrid, but Greece’s costs, financing, and permitting speed will determine investor participation. Ultimately, the scheme’s impact hinges on whether it can deliver genuinely affordable rents for households.