Athens’ Real-Estate 70 Percent off Fair Market Value

Athens’ Real-Estate 70 Percent off Fair Market Value

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 real-estate

Old apartments in Athens are sold at lower prices than their fair market value. In fact, they are sold even 70 percent lower than their fair market value. This is happening due to the constantly increasing “gap” between the fair market values and the actual values on which the real estate properties are sold.

This data is based on the presentation made during the annual conference of the Hellenic Valuation Institute (HVI). According to HVI, the irregularities observed in the real-estate market have been caused by the fact that the fair market values of the real estate properties have not been adjusted to the current situation. The prices are as high as they were back in 2007, before the economic crisis outburst in Greece.

Economist Maria Philippakopoulou, presented data which show that during 2013, someone could purchase a house in the north suburbs of Athens at even lower prices resulting in the “gap” widening between the fair market value and the actual value that the transactions in the real-estate market are made.

In general, the fair market value of the newly-built apartments in the center of Athens is 3-33 percent higher than the actual value. In addition, the old buildings are sold 20-27 percent less than the fair market value.

Accordingly, the fair market value in a newly-built apartment in the north suburbs is 15 percent higher than the actual value. For an older apartment in the north suburbs someone would pay 3.5-60 percent less than the fair market value of the real-estate.

  • Leftist censorship

    Fair market value is decided by what the market offers not what the government thinks a property is worth. Assessing a value of a property too high leads to extravagant taxation which only further hurts the real estate market and economy. Whom is going to develop a business on a property if all their profits are being milked away in high taxes? Where is the incentive? (a real world example of why communists buffoons have little understanding of either human nature or economics – see North Korea)

    While the troika is right to support cuts, it was wrong to support huge increases in taxes. If our taxes are too high it only decreases our competitiveness and increases unemployment. (which will only end up with the Troika having to eventually forgive more debt because of shrinking taxpayer base) The focus now shouldn’t be on further cuts and higher taxes. It should be on reducing debt payments and boosting employment. We can’t have 30% of our population unemployed. It only creates political instability and makes it harder to pay back debts.