Property sales keep growing
Despite the constant increase in prices, real estate transactions continue to expand in Greece
Property transfers increased by 20% in the first half of 2024 compared to the same period last year, despite the rapid growth in prices.
Data from the Independent Authority for Public Revenue (AADE) show that in the period from January to June state revenues from realty transfers amounted to 302.49 million euros, against €252.98 million in the first half of 2023.
The first place in transfers is held by the Municipality of Athens, where 3,419 real estate sales took place, per the data posted by the notaries at the Registry of Real Estate Transfers.
According to the figures from the tax administration, there was a small drop in state revenues during May and June, a development that also shows a corresponding decrease in transfers. The new measures, however, announced by the government may stimulate buying and selling in combination with the re-freezing of value-added tax on new buildings and the suspension, according to reports, of the capital gains tax on real estate sales.
In the meantime, the government apparently intends to keep the taxable rates of real estate (known as objective values) unchanged not only for the current year, but also for 2025.
Contrary to the increase in real estate transfers, inheritances, donations and parental benefits decreased. In the first half of the year around €109.76 million went into public coffers, compared to €124.06 million in the same period in 2023, registering a decrease of 12%. In total, the state collected €412 million both from property sales and from parental benefits and donations.
The government believes that real estate transfers will be stimulated with the changes that have been announced with regards to the My Home 2 and the Renovate-Rent programs.
According to the plan, My Home 2 is to start in January. This is a new low-interest mortgage program for the purchase of a first home. The loans will be 50% interest-free with financing from the Recovery Fund, and the remaining 50% will be an interest-bearing bank loan.
