By Chrysostomos Tsoufis

We are in the 8th year of rising real estate prices. For 31 consecutive quarters the real estate price index has been moving upwards having caused many problems for buyers. The government was right – we also have elections in the Spring of 2027 unless unforeseen – decided to keep the objective values ​​unchanged in 2027 as well (as announced by the Deputy Minister of Finance George Kotsiras) so as not to add more fuel to the fire.

A further increase in the targets – which are frozen from 2021 – would further increase property prices and rents as the extra costs would have to be offset to the owners by the increase in taxes around the property.

First and foremost, the increase in the objectives would also increase the ENFIA and would put a lot of people in the twilight zone of the supplementary ENFIA (which is imposed on assets over 250,000 euros) causing … strokes with the rabas that AADE would send.

In addition to ENFIA, a number of other taxes are directly affected, such as indicatively:

  • Transfer tax 3% on the objective value. When buying a first home, the 3% tax is imposed on the value that exceeds the tax-free limits.
  • Parental Allowances, inheritances and donations
  • Evidence
  • TAP, Municipal taxes, taxes in favor of prefectural funds, distributor taxes, land exchange taxes
  • Urban planning fines and contributions for inclusion in the city plan
  • VAT on new builds (currently suspended)
  • Capital gains tax (and this tax suspended)

In the case of sales – even if, despite the increases, someone was protected by the tax-free in cases of first residence – he would see other taxes increase, such as notary and brokerage fees, the transfer fee to the land registry, any legal fees, etc.

The government’s expectation, at the same time wishful thinking, is that with the measures it is taking (43 actions amounting to 6.5 billion euros so far), with the revival of construction activity, the supply will slowly increase, commercial prices will decrease and thus the conditions will become more favorable to take 2028 – and with a fresh popular mandate if the elections go according to the wishes of the New Democracy – an admittedly difficult political decision.

Until then, however, it will maintain – and probably swell – a discrepancy between objective and commercial values which already reaches over 100% in some areas.

Like in Agia Paraskevi where newly built (up to 5 years old) apartments are sold for 4,250 euros/sq.m. with a zone price of 2,050 euros/sq.m.

In some way, the highest burdens are avoided, but the planning of the state does not have any contact with reality and there is a question of transparency of the transactions.

However, the government plans by the end of the year – if nothing happens again and the project gets another postponement – ​​the gradual expansion of the objective system for determining the value of real estate in 2,167 areas throughout the country. In the first phase, 500 areas will acquire objective values.