New housing reserve: Greece eases conversion of old industrial and commercial buildings into apartments

Thousands of unused factories, workshops, warehouses, offices and tourist properties across Greece may soon be transformed into residential units under new rules approved by parliament.

The amendments, introduced by the Ministry of Social Cohesion and Family, form part of a broader housing policy aimed at expanding the supply of homes without large-scale construction on vacant land. The changes simplify the process of altering the use of legally existing buildings that are no longer serving their original purpose.

Many of these structures have stood empty for years, gradually deteriorating and, in some cases, posing safety risks. The ministry has confirmed that the law accelerates changes of use for both land and buildings while imposing a clear ban on short-term rentals for any newly created housing.

Which buildings qualify

The new regime applies to lawfully existing buildings originally constructed for other purposes. Eligible properties include:

• Former industrial plants and factories
• Craft and production premises
• Office and commercial buildings
• Closed hotels and other tourist facilities
• Warehouses and logistics spaces

Conversion is permitted for an entire building or a distinct part of it. However, the change of use is strictly limited to the existing legal volume. Owners may not increase the overall building area, site coverage or volume under the guise of conversion. An old factory may be subdivided into apartments, but additional floors or extensions are not allowed.

Rules inside urban plans and settlements

For buildings located within an approved urban plan or within the boundaries of a settlement, conversion to residential use is allowed even where current land-use rules do not provide for housing in that zone. The same flexibility applies to buildings constructed with officially approved deviations from standard planning norms, provided the deviation was authorised no later than 31 December 2025.

In such cases, a positive opinion from the Central Architectural Council is required before a building permit can be issued. The council must assess whether the property is suitable for residential use and whether the conversion would produce an architecturally unacceptable result.

Rules outside urban plans

Significant changes also apply to lawful buildings situated outside urban plans and settlement boundaries. These may likewise be converted to housing regardless of existing land-use designations, general and special building restrictions, and certain territorial or investment regimes affecting the plot.

The new residential designation remains in force even if the area is later incorporated into an urban plan or subjected to new planning regulation. The possibility is available only once and only for the existing building envelope. The law does not create a general right to construct new residential complexes on the surrounding land.

When an electronic building identity update is sufficient

If the change of use does not require construction works that would normally need a separate building permit, the procedure can be completed by updating the Electronic Building Identity. Significant interventions affecting load-bearing structures, building services, fire safety, façades, staircases or other essential elements will still require the appropriate permit and full technical oversight.

Special 5% levy

For certain properties—primarily those built outside urban plans with approved deviations from standard conditions—a one-off special levy is introduced. Before a permit is issued, the owner must pay the Green Fund an amount equal to 5% of the objective value of the land corresponding to the property. The payment cannot be offset against other fees or planning contributions and is earmarked for climate-neutrality and environmental improvement projects. The levy is calculated solely on the objective land value, not on renovation costs or the future market value of the apartments.

Legalised irregular buildings

The new provisions may also apply to buildings that previously contained unauthorised construction, provided the owner has fully completed the regularisation procedure under Laws 4178/2013 or 4495/2017. Mere submission of an application is not sufficient; the property must have obtained complete legal status with all required documentation and payments completed. The law does not grant a general amnesty for illegal structures.

Five-year ban on short-term rentals

Housing created under the new procedure may not be used for short-term rentals for five years after the change of use is completed. The prohibition applies both inside and outside urban plans. Its purpose is to ensure that the new units contribute to the permanent housing stock rather than immediately entering the tourist rental market.

Owners remain free to occupy the property themselves, sell it or leave it vacant. The restriction limits the form of exploitation but does not guarantee that every new apartment will appear on the long-term rental market.

No technical amnesty

Planning exceptions do not waive the technical requirements applicable to residential premises. Conversion projects will be checked for structural stability, electrical and mechanical systems, fire safety, natural lighting and ventilation, sanitary conditions, accessibility for people with reduced mobility, and compliance with the Building Code and relevant technical standards.

For many industrial and warehouse buildings these requirements may prove the greatest obstacle. Large floor plates often lack adequate natural light, have unsuitable depths, outdated building services and structures not designed for subdivision into multiple independent dwellings.

Who stands to benefit

The greatest interest is expected among owners of large vacant properties in Athens, Piraeus, Thessaloniki and former industrial districts of other cities. Converting an existing building can sometimes prove less costly than demolition and new construction, particularly where the structure is well located, structurally sound and already connected to main networks.

Municipalities may also gain: a renovated building replaces a derelict one, brings new residents and reduces the number of hazardous ruins. Ultimate success, however, will depend on the cost of the necessary works. If structural strengthening, creation of openings, ventilation, fire escapes and residential services prove prohibitively expensive, the legal possibility of change of use may remain largely theoretical.

In summary, the new law opens a pathway for turning old factories, warehouses, hotels and commercial buildings into housing—including in locations where ordinary land-use rules would not permit it. Conversion is confined to the existing building volume, must meet all technical residential standards, and the resulting apartments cannot be offered for short-term rental for five years.

Stay connected to Greek City Times for Free on Google News
Stay updated with the latest news from Greece and around the world on greekcitytimes.com.
Contact our newsroom to share your updates, stories, photos, or videos. Follow GCT on Google News and Apple News.
Advertising1