Expansion of objective values
Taxable property rates will soon apply to the entire country, including uninhabited areas
The Finance Ministry is planning for the expansion of taxable property rates, known as “objective values,” to cover the entire country, with certified property surveyors about to be invited to undertake the determination of zone values in 2,167 areas.
These areas will acquire objective values for the first time. This is “the remaining 1.5% of the country where the required urban elements were missing.” In terms of population, the settlements in question correspond to only 1.5% of the total population in Greece, and they are not just remote, but sparsely populated or deserted settlements, which makes it extremely difficult to collect not only technical but also commercial data for the zones in question.
According to reports, in 650 of these settlements there is not a single resident; a maximum of 10 people live in another 500; in 800 the local population reaches 50 people, and only the remaining 550 have more than 50 inhabitants. Another characteristic is that the majority of them are island areas, with a very low commercial value – hence they are almost uninhabited – therefore, since there is no active economic activity, transactions and real estate sales, the determination of the value and therefore band values becomes extremely difficult.
Areas affected by the recent floods and fires will be excluded from the expansion, at this stage at least, as it is impossible to calculate a zone price under these conditions.
As far as the existing objective values are concerned, January 2024 marks two years since their adjustment. For the first time, the zone prices that had been set were almost at the same level as the commercial values. However, during this period, from their announcement in mid-June 2021 to date, commercial values have soared, and in many areas, mainly in large urban centers but also in resort areas, they have recorded an increase on average that exceeds 30%.
According to Bank of Greece data, from January 2021 until end-June 2023, prices in Attica increased by 32.5%, and even more in the suburbs.
