The Greek Ministry of National Economy and Finance is considering freezing property objective values for at least the next year, a move that is part of a broader strategy to address the country’s housing crisis, complementing other recently announced government interventions.
Objective values were last adjusted three years ago, since when market prices have risen considerably. The concern is that aligning objective values with current market prices could trigger further increases in property values, worsening the already acute housing problem.
Besides the potential freeze on objective values, the economic team is also considering extending the suspension of VAT on newly built properties and the property capital gains tax, likely through 2025. These measures, first implemented in 2019, have effectively stimulated property transactions and new construction.
Greece’s real estate market continues to show strong growth. Bank of Greece data for the second quarter of 2024 shows a 9.2% year-on-year increase in apartment prices. New apartments (up to 5 years old) saw a 10.7% rise, while older properties increased by 8.3%.
Price increases vary geographically. Thessaloniki leads at 12.1%, followed by other areas at 10.4%, Athens at 9.1%, and other major cities at 7.3%. Overall, urban areas across Greece experienced an average 9.0% price increase compared to the same quarter last year.
Despite these significant increases, nationwide property prices remain slightly below the 2008 peak. However, since the market’s recovery began in 2017, average prices across Greece have surged by 69%, with Attica and Thessaloniki seeing even more substantial increases of 88% and 78% respectively.
These market dynamics highlight the government’s motivation to consider strategic measures to manage the rapidly evolving real estate landscape and its impact on housing affordability.
