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

Overview of the Study

The policy study “Housing as Investment in Greece and Southern Europe – Private profit versus social value” is published by the Foundation for European Progressive Studies (FEPS), a think‑tank linked to the Progressive Alliance of Socialists and Democrats. Authors Dimitra Siatitsa, Laura Colini and Simone Tulumello analyse how housing markets in Greece, Portugal, Italy and Spain have been transformed into financial assets, emphasizing the role of neoliberal policies, foreign investment and state‑led mechanisms that prioritize profit over social needs.

Methodology and Sources

The document compiles data from Eurostat, national statistical offices, EU policy reports and original field research. It presents quantitative indicators such as housing price indices (e.g., a 66.4 % cumulative price rise in Greece from 2017‑2024), rent growth (over 75 % increase between 2015‑2024), home‑ownership decline (from 77.2 % in 2010 to 69.6 % in 2023), and the share of non‑performing loans (reaching 49.1 % of mortgage portfolios in 2016). Qualitative analysis draws on policy documents, legislative texts and interviews with policymakers.

Policy Context in Southern Europe

Across the region, housing policy has shifted from public provision to market‑led solutions. The study notes that Greece lacks any form of public or cooperative housing, while Italy, Portugal and Spain retain limited social‑housing stocks (2‑4 % of total dwellings). EU instruments such as the Recovery and Resilience Facility (RRF) and the European Green Deal are highlighted, but the authors argue that funding is often directed toward private renovation rather than expanding affordable stock.

Financialisation Mechanisms

Key pathways identified include: (1) Golden Visa and residence‑by‑investment programmes, which have attracted €5.5‑7 bn in real‑estate investment and facilitated the purchase of 22 298 properties (2023 data). (2) Short‑term rentals (STRs), which now account for a significant share of the housing supply (e.g., 232 841 STR units in Greece in August 2024). (3) Private debt management and NPL securitisation, with Greek non‑performing loan portfolios falling from €70 bn in 2019 to under €11 bn after state‑backed schemes. (4) Real Estate Investment Trusts (REITs) and REICs, primarily in non‑residential sectors but increasingly targeting residential assets.

Social Impacts

The study documents rising housing cost overburden: 28.5 % of the Greek population, and 84.5 % of the poorest households, spend more than 40 % of disposable income on housing. Youth home‑ownership rates have fallen, and rental markets have become more precarious, with a 22.7 % share of households renting in Greece (2023). Energy poverty is amplified by low‑efficiency building stock; the EU estimates €45 bn is needed by 2030 for energy upgrades in the residential sector.

Comparative Data Table Highlights

• Price Index (2015=100): Greece 250, Italy 150, Spain 200, Portugal 180 (2024).
• Home‑ownership 2023: Greece 69.6 %, Italy 72.1 %, Portugal 73.1 %, Spain 78.9 %.
• STR growth (2020‑2024): Greece +75 %, Portugal +60 %, Italy +55 %, Spain +48 %.
• Golden Visa permits (2023): Greece 8 797, Portugal 5 600, Spain 4 200, Italy 2 300.

Policy Recommendations

The authors propose three strategic pathways: (1) Control market dynamics – implement rent caps, stricter STR regulations, and higher thresholds for investment‑linked visas. (2) Socialise housing – expand public and de‑commodified stock through land‑for‑flats exchanges, municipal housing funds, and cooperative models. (3) Democratic governance – create multi‑level bodies linking EU, national and local authorities to monitor affordability, enforce social‑value criteria on public‑funded projects and align energy‑efficiency upgrades with rent‑control mechanisms.

European Implications

The study stresses that EU‑wide coordination is essential to curb speculative capital flows and to channel climate‑related funding toward genuinely affordable housing. It calls for revisions to state‑aid rules, stronger SGEI definitions, and conditionality on EU grants to prevent “green gentrification.” By aligning financial regulations with social housing objectives, the authors argue that Southern Europe can transition toward a more sustainable and equitable housing system.