New information system will use data from the real estate market for the assessment of values.
The next adjustment of property rates used for tax purposes, known as “objective values,” will take place in 2025 with a new automated assessment system.
Although the existing values are already considered outdated, they will be maintained for at least another year.
The zonal values will be “aligned” with the state of the market by employing appropriate algorithms. The modifications, which are part of the tax bill that is presently undergoing public consultation, call for the establishment of a real-time updated database of real estate market data as well as a new information system that will utilize this data to determine property values.
The current zone values are, as already mentioned, outdated and were set in June 2021 and implemented in January 2022.
Today, in some areas, mainly in major urban centers, but also in the periphery, prices have risen sharply.
Indicatively, and according to property transfer register data, in Holargos, a 111.55 sq.m. fourth floor apartment, built in 2022, was sold last July for 410,045 euros, or 3,675 per square meter, when the zone price is 1,900 euros per sq.m.
Also, an apartment of 78.34 sq.m. in Agia Paraskevi was sold for 230,000 euros, or 2,935 euros per sq.m., when the zone price is 1,850 euros per sq.m.
In Palaio Faliro, an apartment of 68 sq.m., built in 1984, was sold for 250,000 euros, or 3,676 euros per square meter, when the zone price is 2,150 euros.
Data from the Bank of Greece (BoG) indicates that prices in Attica increased by 32.5% between the start of 2021 and the end of the second quarter of this year. Increases in the suburbs to the north and south likely to have been much greater. Additionally, whether a house is older or recently constructed, the average price rise over the same period nationwide is 30%.
By the end of 2023, the digitization of the zones for all areas within and outside the city plan or settlement boundaries will be completed, which is a prerequisite for the operation of the automatic system for the adjustment of property values.
More specifically, the draft law for the new mass assessment system provides for the establishment of a database of real estate data and values (real estate register), which will be maintained in electronic form.
All of the data that shape and influence the value of real estate will be gathered and processed by the information system.