In the face of a sharp rise in property prices, real estate transactions in Greece remain high, significantly boosting government revenues. Yet, the figures reveal a narrative highlighting the strength of strategic governance, technological innovation, and the power of Greece’s culture.
Data from the Independent Authority for Public Revenue (AADE) shows that from January to September, the Greek government’s revenues from the sale and purchase of residences, land, and commercial properties rose by 21.2% compared to the same period last year, reaching €342 million, up from €281.9 million. Furthermore, the Government predicts total property revenues will total over €800 million by the end of this year. Delving deeper, since the beginning of the year, transfers involved 33,100 properties, with the Municipality of Athens, a thriving hub for history, culture and tourism, taking the first place as 4,586 properties were recorded with a total value of more than €383.6 million. Greece’s real estate landscape is therefore as vibrant as ever, despite figures from the Bank of Greece showing that since the start of the property market recovery in 2017, apartment sales prices are up 69.2% and are just 2.4% below the 2008 high. When analysing the growth in Greece’s property market, we shouldn’t just look at the numbers; statistics demonstrate Greece’s ability to thrive through both domestic and international investment, with Athens, a hub for tourism, symbolic of Greece’s ability to merge its history with forward-looking opportunities. Greece’s property market has made a remarkable recovery in recent years and the economic advancement of the sector is undeniable. However, this was no coincidence but rather the outcome of coordinated government efforts, the welcoming of foreign investment, and the nation’s ability to spin challenges into opportunities.
The real estate market’s growth is therefore not a coincidence. Rather, it has developed from strategic government actions. For example, an increase to the tax-free threshold for parental transfers and donations to €800,000 has resulted in a 14.5% rise in tax revenues amounting to €170 million compared to the same period in 2023, which generated €148.59 million.
Meanwhile, Greece’s New Democracy government has re-frozen value-added tax on new buildings and suspended capital gains tax, creating a more favourable environment for property buyers and sellers. More so, new measures announced last month have stimulated the buying and selling of property as Deputy Minister of Digital Governance Konstantinos Kyranakis further reduced bureaucracy within the sector, making the landscape more favourable for property owners. More so, the Government’s My Home 2 program aims to provide Greeks with low-interest mortgages, while initiatives like the Renovate-Rent program revitalise dormant properties by subsidising the costs of renovations. These measures reflect an aim to balance economic growth with social equity and opportunity. In an era of technological advancements, artificial Intelligence (AI) is driving innovation and efficiency across the real estate industry and will soon revolutionise practices. Greece is among the first in Europe to apply AI practically in public administration. Regarding property, the Government has integrated AI into the land registry, assisting with decision-making, speeding up transactions and streamlining processes. Greece’s embrace of digital transformation not only attracts investors but also positions the nation as a leader in integrating advanced technology.
Article written given by Christina Georgaki, originally published on European Business Magazine