BUSINESS

Data confirm slump in properties' market rates

PROKOPIS HATZINIKOLAOU

TAGS: Property, Taxation

Properties are being sold at just a fraction of their “objective value” (the property price used for tax purposes), according to sale contracts uploaded on the Finance Ministry’s online platform gsis.gr.

The processing of data drawn indirectly from notaries (in the process of issuing property tax clearance the agencies hold on to the details of transaction contracts) shows that in the first quarter of 2017 some properties sold at a rate of 100 euros per square meter while their zone rate was 1,250 euros/sq.m., for instance.

In studying in the data it becomes obvious that many property owners are paying tax based on an objective value that is much higher than the actual market rate of their assets, as in certain cases the price agreed was just a fifth or sixth of the objective value. Market experts agree that going rates have slumped but also note that contracts often mention a symbolic price and not the amount actually paid, with money changing hands under the table.

According to the General Secretariat of Information Systems, “the Property Transfer Value Register is a useful instrument that allows anyone who is interested to monitor the course of the property market. Users may receive information on property transfer prices per area based on the criteria they select from what is available at the application, being able to conduct general or more specialized searches.”

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