The ruling of the Council of State, Greece’s Supreme Court, to essentially repeal the New Building Regulation has significantly affected the real estate market, freezing construction for an unknown period of time and exacerbating the housing problem.
The big losers are property owners, developers and investors who have paid for the building permit and plans, but have not started construction.
These permits should be revised and the owner should bear the additional cost of the new permit, since it is certainly in his interest to build without the benefits of the New Building Regulation, because there are also cases in the market where the entire project should be abandoned.
The issue affects the real estate market as a whole, especially housing, which has become inaccessible to Greek citizens. The problem of lack of supply, which also brings about an increase in values, whether it is for sale or for rent, is estimated to worsen further.
Costs skyrocket
Apartment building developers are talking about an increase in the selling prices of newly built apartments of up to 30% due to the abolition of the incentives. The increase in prices for newly built properties also brings an increase in prices for older properties.
However, the worst thing they pointed out is that construction costs have skyrocketed and this, combined with the fewer square meters that they will be able to build, will act as a deterrent to starting the construction of new homes. The same obviously applies to those who see the housing market as an investment.
However, companies that planned to invest in new commercial properties, mainly offices, are also concerned. Their planning has frozen, and this obviously has a cost, and not only financial. The country’s credibility has also been damaged, especially with the back and forth with building permits and the double standards.
