Despite the rally in real estate prices -especially in areas such as Kolonaki, Glyfada and the northern suburbs-the government appears to have decided not to proceed with a new alignment of property values, at least until 2027. The last realignment took place in June 2021, and since then the gap between commercial and tax values has widened considerably. This is a decision that is part of the plan to stabilize the market, but also in an effort to keep live investment interest in real estate, without further burdening citizens.

If the government were to give the green light for a new increase in property prices, the effects would be immediate: property taxes would rise sharply, even in cases where there are currently tax-free thresholds, since transfer costs – notary, real estate, taxes and fees – are calculated on the property values. In addition, there would be an increase in ENFIA, while one would not rule out a domino effect of increases in other taxes or fees. And all this at a time when the economic staff is looking for ways to provide relief for the middle class and incentives for the first home market.

The reality of the market, however, shows that the gap between property and market value has gotten out of hand. In Kolonaki, a 180-square-metre apartment sold for 1.2 million euros – or 6,642 euros per square metre – when the zone price in the area is 4,150 euros. In Glyfada, a 246 sq.m. residence changed hands for 1.6 million, or 6,553 euros per sq.m., while the property price does not exceed 4,250 euros. These differences reflect the depth of the gap that has been created, especially in areas of high demand.

At the same time, the government is moving to extend the objective pricing system to the remaining 1.5% of the territory that has not yet joined – that is, to 2,167 areas that remain “outside the system” due to a lack of urban planning data. In the first wave, around 500 areas are expected to join, as current distortions create a strong inequality in taxation: for example, properties assessed on the basis of comparative data may be taxed less or more than they are actually worth, depending on how the data is interpreted.

Finally, the redefinition of zone values in 36 areas within 12 municipalities – including Agii Anargyroi-Kamatero, Halandri, Vrilissia, Piraeus, Glyfada, Ithaca, Karpathos, Rhodes and Loutraki – remains pending. Although the objections have been accepted by the Ministry, the private valuers have not yet submitted the required recommendations. This delay keeps prices “frozen” and the relative uncertainty for owners who are waiting for new data to proceed with the purchase or settlement of assets.