A new housing protection mechanism is set to offer a lifeline to thousands of vulnerable households in Greece who risk losing-or have already lost-their primary residence, according to en.protothema.gr. By summer 2026, the Property Acquisition and Leaseback Agency is expected to become operational, aiming to protect more than 20,000 financially distressed borrowers from homelessness due to foreclosure or bankruptcy.
Under the scheme, a private entity selected through an international tender will purchase the primary residence of an eligible vulnerable debtor before or after foreclosure. The home will then be leased back to the same household for a period of twelve years, allowing them to remain in their residence as tenants rather than owners. Rent will be subsidized by the state, and tenants will retain the right to repurchase the property if their financial situation improves.
The program is part of the Bankruptcy Law framework and is based on the international “sale and leaseback” model, adapted to Greek conditions. Eligibility is strictly defined and verified through the vulnerable household certification platform to ensure the measure supports only those truly in need.
At present, over 20,000 households meet the vulnerability criteria, with more than 1,600 expected to enter the scheme immediately. Vulnerability thresholds include low income, limited property value, and capped savings and assets.
Once certified, the agency intervenes in the auction process, acquires the property at a reduced price, and leases it back to the household. Monthly rent is set by ministerial criteria, alongside a state subsidy ranging from €70 to €210.
Importantly, the right to repurchase the home at the end of the lease period-transferable to heirs-offers families a genuine second chance at long-term housing stability.
Source: en.protothema.gr
