The proposal was unanimously voted by the municipal factions and will be submitted to the competent Ministry of Finance.
The reduction by at least half of the increase in objective values in all municipal communities of the Municipality of Athens, after the price adjustment activated on January 1, 2022 by the new tax bill of the Ministry of Finance, and caused a jump in starting prices in all zones of municipality, requested today the Mayor of Athens, Kostas Bakoyannis during his presentation to the Municipal Council.
The proposal was unanimously voted by the municipal factions and will be submitted to the competent Ministry of Finance.
With this proposal, the Municipality of Athens essentially requests that the objective values of all apartments in Athens be redefined, as injustices and major distortions have been established.
In particular, the Mayor of Athens suggested that the maximum increase in the price of objective values within the municipality’s borders should not exceed 55% compared to the prices of 2021.
“Increases that exceed 90% are objectively 100% unfair. They suffer from a lack of context and affect the most vulnerable citizens. The Municipality of Athens requested the readjustment of the objective values of the properties, setting a reasonable ceiling that would ensure the correction of the subsequent distortions”, the Mayor of Athens, Costas Bakoyannis, emphasized in his statement.
Increases over 90%
In relation to the current prices of 2021, the revaluation of the objective values brought about increases ranging from +45.00% to +94.74%, in 30 zones within the Municipality of Athens and mainly in low transaction value properties.
The “big picture” essentially shows the significant discrepancy between objective prices and asking prices for almost all properties in the perimeter of the Municipality of Athens. The difference between objective and requested prices within the municipality ranges from 28.6% to 53.6%
The following table lists the changes in zone prices and the percentage of increase. It is indicative of the excessive price change that in the 6th municipality, the increase in the starting price amounts to 61%. That is, from the 900 euros that was the lowest price, it rose to 1,450 and from the 1,500 euros that was the highest price, it reached 1,850.
The average increase in the lower price zone was +20.5%, while in the upper one it was 15.9%. Practically, this means that the objective value for a 50 sq.m. apartment. on the second floor of Kapodistriou Street in the center of Athens, built in 1950 (72 years old) is estimated at €63,000. At a distance of only 50 meters, for a property with the same characteristics a buyer finds:
– Property 55 sq.m., built in 1962 on the third floor: Asking Price: €41,000
– Property 50 sq.m., built in 1958 on the first floor: Asking Price: €51,000
– Property 45 sq.m., built in 1960 on the second floor: Asking Price: € 49,000
Social side effects
The assimilation of the objective value of the properties with their market value, as well as their correlation as an asset criterion with the minimum guaranteed income has significant side effects on groups of vulnerable citizens, as it excludes them from access to social benefits (housing, solidarity, heating, etc. .), from the inclusion in the social tariff of electricity providers, but also the minimum discount of 50% for ENFIA.
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