The revival of the Real Estate market crucial for economic growth

Greece is ranked second in the list of countries with the largest loss of wealth, according to a News World Wealth survey conducted in collaboration with Visual Capitalist. During 2007-2017, the critical 10 years of three tough MoUs in our country, Greece has experienced the largest loss of wealth, following the champion Venezuela, which scored -48% with Greece trailing behind with -37%.

This percentage is not surprising to anyone in our country since all sectors of the economy have been experiencing the effects of prolonged austerity that came along with strict fiscal adjustment with cuts in wages, pensions, social benefits and an increase to almost all direct and indirect taxes.

The first sector which was badly affected by the crisis the real estate market. In fact, according to New Democracy the revival of the real estate market is crucial for the recovery of the economy.

 

New Democracy’s plan to “warm up” the real estate market 

 

The main opposition party‘s plan is based on three axes: a 30% decrease in the ENFIA tax over a two-year period, a drastic reduction of bureaucracy in real estate transfers, and the creation of incentives to upgrade and renovate buildings. Mr Kyriakos Mitsotakis has announced several times the reduction of the ENFIA tax by 30%, knowing that New Democracy lost a significant percentage of its voters, especially in the national elections of January 2015, because of this tax. Regarding the reduction of bureaucracy, the 23 certificates currently required for the transfer of a property will be reduced by a third, while certificates that can be submitted electronically will be significantly increased.

The most important measure porposed by New Democracy is the provision of 40% – 50% tax deduction for all energy, functional and aesthetic upgrading of existing properties as well as for their maintenance and utilization. Expenditure on the above-mentioned works will be deducted up to 50% without any tax liability of the beneficiary, including ENFIA, for the next three years.

It is worth noting that about 200 professions are directly and indirectly involved in construction and generally in the acquisition of urban, commercial, business and tourist properties. A revivalin this sector could be beneficial for both scientific personnel and the standard workforce.

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