Pappas, 27, an aspiring actress, says it is not the dividend young people hoped for after a ravaging debt crisis and a decade of austerity. He attributes the surge in rents mainly to "an overly depressed market during the (debt) crisis." Loan-to-values on mortgages have dropped to 70-75%, from more than 100% before the debt crisis. Banks' caution underpins financial stability but could also keep young working people off the property ladder for decades. Officials expect about 10,000 young couples aged 25-39 will benefit from the programme offering 1% interest on loans up to 150,000 euros.

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