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Greece’s Housing Crisis: Key Drivers And Solutions

Greece is grappling with a severe housing crisis caused by a sharp decline in construction activity and reduced household purchasing power. What was once a typical housing market is now facing a significant shortage of new properties, exacerbating the affordability gap for many Greeks.

The Decline In New Construction

From 2001 to 2011, Greece built an average of 52,000 new homes per year, with 31,000 of them in Attica. But from 2011 to 2021, this dropped to just 26,000 homes annually, with a mere 4,500 in Attica. The housing supply has fallen by as much as 85%-90% compared to the pre-crisis period. Though construction activity has revived in recent years, it is still far from meeting demand.

The Paradox Of Vacant Homes

One of the most perplexing aspects of Greece’s housing issue is the 700,000 vacant homes across the country, according to the latest census. While this large number suggests there should be enough supply, the crisis is fueled by other factors such as rising divorces and a growing number of single-member households, driving up demand.

Mortgage Decline And Shrinking Purchasing Power

Another critical indicator of the housing crisis is the dramatic drop in mortgages. In 2023, only 14,000 new mortgages were issued, compared to 115,000 in 2007. Meanwhile, disposable income in Greece is now at just 68% of the 2010 level, making it harder for people to afford homes. This has further increased pressure on the housing market as real estate prices continue to rise.

Urban Planning And Unused Land

Urban planning policies have also played a role in limiting housing supply. Expansive areas like Mesogeia and Eleonas in Attica remain largely unexploited, while restrictions on existing properties prevent efficient use of available land. These factors prevent the market from responding to growing demand.

Limited Real Estate Availability

Banks and servicers currently hold around 15,000 residential properties, but many of these are occupied, making it difficult to release them to the market. Though efforts to speed up their availability are underway, the overall supply remains limited.

Short-Term Rentals And Their Impact

While short-term rentals contribute to the housing shortage, they are not the primary cause. The real issue is that no new homes have been built in the past 15 years, and renovation costs have risen sharply. Additionally, high taxes and unpaid rents discourage owners from offering long-term leases.

Economic Disparity: Rising Prices vs. Stagnant Incomes

From 2015 to 2024, property prices increased by 5% annually, while average per capita income grew by just 3%. This disparity, coupled with the 20% annual growth in short-term rentals, has made homeownership increasingly out of reach for many Greeks.

Conclusion: A Call For Action

The housing crisis in Greece is multifaceted: insufficient new construction, limited availability of real estate, economic stagnation, and restrictive urban planning all contribute to the problem. Urgent policy changes, including incentives for new construction and better management of vacant properties, are needed to address the growing housing demand and restore affordability.

AI Startup InsureVision Secures $2.7M To Predict Car Crashes Before They Happen

Imagine a world where your car doesn’t just react to accidents—it predicts them before they unfold. That’s the bold vision behind InsureVision, a London-based AI startup that just closed a $2.7 million seed round to turn predictive crash prevention into reality.

Why This Matters

Backing from State Farm Ventures, Rethink Ventures, and Twin Path Ventures signals serious industry confidence. State Farm, one of the world’s largest insurers, rarely bets on early-stage startups, making its participation a major endorsement of InsureVision’s tech.

The Tech: AI That “Sees” Like A Human

Founded in 2023, InsureVision has built an AI system designed to process real-time video from standard car cameras—an approach they call “enviromatics.” Unlike conventional GPS-based trackers that assess risk through raw data points like speed and braking, InsureVision’s AI interprets the full driving environment.

Here’s the difference:

  • Traditional systems might flag sudden braking as reckless.
  • InsureVision’s AI understands that a pile-up ahead is the real risk and recognises defensive driving rather than penalising it.

Who’s Buying In?

The advanced car safety tech market is projected to grow from $21 billion today to $40 billion by 2030, and InsureVision wants a sizable cut. Its AI could reshape risk assessment for:

  • Insurance companies offering personalised pricing based on actual driving behaviour.
  • Fleet operators (think Uber, logistics firms) seeking real-time risk monitoring.
  • Automakers integrating AI-driven safety features to comply with evolving regulations.

Next Steps

Trials with major U.S. insurers are underway, with Japan next in line for expansion. Results from these pilots are expected by mid-2025.

“We’ve built a vision transformer—an AI that learns from what it sees, not just mechanical data like speed or acceleration,” says CEO Mark Miller. “This brings real-world context into risk assessment, making it a fundamentally more human approach.”

For investors and industry insiders, the bet is clear: If InsureVision delivers, it won’t just improve road safety—it could redefine the economics of auto insurance.

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