The program aims to bring another 15,000-20,000 properties into the long-term rental market. [REUTERS]
The new “I Renovate – I Rent” state subsidy program is yet another attempt to increase the supply of housing by helping make closed properties available.
It is reaching out to some 15,000-20,000 owners of closed properties, who, in addition to meeting the program’s criteria, may be encouraged by a subsidy that can reach €300 per square meter to renovate their closed apartment and make it available for long-term rental at a reasonable price. Restrictions are included: Anyone who joins will make commitments regarding the amount of the monthly rent, as the ultimate goal is to bolster the availability of affordable housing.
The total subsidy can reach €36,000 for a 120-square-meter apartment. However, there are obstacles, such as the soaring prices of materials and the need to provide invoices from an industry that works mainly without receipts; such issues diminish the subsidy and increase the amount that the owners must put out of their own pocket.
The new program is expected to start in late May, and it remains to be seen whether there will also be a tax exemption for long-term lease takings for the first few years, as was the case with the first such program launched in April 2024, with moderate success.