Housing as investment in Greece and Southern Europe - Private profit versus social value

The policy study "Housing as Investment in Greece and Southern Europe - Private Profit versus Social Value" was produced by Dimitra Siatitsa, Laura Colini, and Simone Tulumello, with financial support from the European Parliament. The study critically examines the evolving landscape of housing markets in Greece and Southern Europe, highlighting the tensions between private profit motives and the social value of housing.

Since 2017, housing prices in Greece have surged by over 66%, reaching levels comparable to pre-crisis peaks. Rent prices have also increased by more than 75% between 2015 and 2024, making access to housing increasingly difficult for low and middle-income households. Approximately 28.5% of the population is burdened by housing costs, with 84.5% of those in poverty spending over 40% of their disposable income on housing.

The study emphasizes the neoliberal transformation of housing policy, where housing is treated more as a financial asset than a social good. It highlights how public policies have facilitated the commodification of housing, resulting in heightened inequalities. The growth of foreign investment, particularly via residence-by-investment programs, has exacerbated local housing crises, leading to speculation and unaffordability.

Three primary mechanisms driving housing financialization in Greece are identified: private debt management, the touristification of residential stock, and increased corporate investment in rental housing. The study notes that a large number of residential properties are now controlled by banks and real estate investment trusts (REITs), which has led to a rise in speculative investments, making housing less accessible for local populations.

Recent policy reforms in Greece have perpetuated a homeownership-oriented approach, channeling public funds primarily into subsidized mortgages rather than social housing programs. The reliance on public-private partnerships (PPPs) and market-driven solutions has not effectively addressed the housing crisis, resulting in further social polarization and rising property values.

The study calls for a shift toward recognizing housing as a social good rather than a commodity. It proposes several pathways, including the regulation of speculative market dynamics, the expansion of public and cooperative housing, and the establishment of democratic governance structures. These measures aim to prioritize housing accessibility and affordability while addressing the needs of vulnerable populations.

The report highlights the necessity for comprehensive reforms in EU housing policies to promote housing as a right. It stresses the importance of aligning national and local policies with EU objectives, emphasizing the need for funding mechanisms that support affordable and social housing initiatives. The success of these reforms depends on the political will to tackle the entrenched financialization of housing markets.

This policy study serves as a crucial resource for understanding the complexities of housing as both an investment and a fundamental social right, offering insights into potential solutions for achieving sustainable housing in Greece and Southern Europe.