The housing market is facing two parallel developments.
The imbalance between supply and demand continues to keep rental prices high, with the shortage of small homes, increased demand, and owner uncertainty being, according to the president of POMIDA Stratos Paradis, key causes of the problem.
Speaking to ERTnews, Mr. Paradis emphasized that the housing market is facing two parallel developments: on one hand, urbanization continues to boost housing demand, and on the other, households have now split into more separate residences.
As he explained, while in the past two or even three generations could live in one house, today grandparents, couples, and separated households create a greater need for separate residences.
At the same time, supply is not meeting demand, especially in the category of small homes. According to Mr. Paradis, the small homes that renters seek most have not been produced in sufficient numbers in the last 20-25 years, which intensifies pressure on the market.
"We have constantly increasing demand," he noted, while also highlighting the rising cost of property maintenance. He argued that more incentives are needed for owners so that properties currently remaining vacant can return to the long-term rental market.
In this context, the president of POMIDA referred to the need for tax incentives for owners, including for properties that remain vacant and could be offered for long-term rent. One of the incentives currently provided is a three-year tax exemption for specific properties returning to long-term rental.
"The big problem is the owner's uncertainty"
Mr. Paradis placed particular emphasis on the uncertainty that, as he said, the owner faces when choosing a tenant.
As he stated, the owner often does not know the financial standing of the prospective tenant, and currently, there is no direct and easy way for the latter to prove their solvency.
For this reason, POMIDA is requesting the implementation of a tenant solvency certificate, which, according to Mr. Paradis, could change the way the market operates.
The logic, as he described it, is that a tenant with certified financial solvency would gain an advantage in finding housing. "Instead of the tenant chasing the owner, it will be the owner chasing the tenant," he said characteristically.
The mandatory payment of rents through the banking system was also at the center of the discussion, as well as its connection to rent rebate measures.
Mr. Paradis clarified that the banking payment of rents is not a tax incentive for owners in itself, and argued that for the measure to be implemented, the Property Ownership and Management Register (MIDA) must first be completed.
A key parameter of the process, as he explained, is that the bank account to which each rent is paid must be declared on the rental platform, so that transactions can be monitored.
POMIDA has requested an extension for the implementation of mandatory banking payments, arguing that without the completion of the relevant infrastructure, the measure cannot function effectively.
At the same time, Mr. Paradis requested exceptions for cases where there is a genuine inability for bank payment, such as very small rents, individuals over 70 years old, and cases where rents have been seized.
"We are not asking for any favors from anyone. We are asking for obvious things," he stressed, arguing that the measure must first be technically and practically feasible.
The problem of educators and seasonal workers
The acute problem faced by educators, professionals, and workers who have to relocate to islands or the provinces without having secured housing was also raised.
The problem is particularly acute in areas with high tourist activity, where properties that could be made available to educators or other workers are often directed towards short-term rentals.
Educators may be informed just a few days before the start of the school year that they must take up duties in an island or provincial location. At the same time, they are forced to find housing immediately in a market with limited availability.
Mr. Paradis noted that the problem is particularly intense in certain areas and argued that the State, in cooperation with Local Government, should provide assistance.
As he mentioned, some municipalities have already proceeded with solutions, even by renting small hotel units, to ensure temporary housing for workers. However, as he stressed, such initiatives cannot be left solely to the goodwill of each municipality.
