Property tax is introduced
In recent days we have witnessed the announcement of the introduction real estate tax, which announcement brings with it speculation, spins and speculation that it will affect the real estate market.
Since this topic is extremely interesting to both experts and the general public, we give ourselves the right to comment on it as long-term players in the real estate market.
I emphasize that at the time of writing this blog, the real estate tax has not yet been presented to the public and that we are dealing with data that is coming out to the public at the drop of a hat.
What we know for sure is that a property tax is being introduced. What is still in the sphere of speculation is that the same will be addressed in the amount than 0 to 8 euros per m2, for the amount to be determined by the local government, that the objective is for the property tax to affect owners of empty properties and renters in tourism, while owners who rent a property on the long term would be spared.
The idea and reason for introducing a property tax is certainly a good one, however there are a lot of unknowns and a lot of open questions that anyone could predict exactly what impact the property tax will have on the market, but it certainly will have. Who and how much the real estate tax will have an impact depends on a number of factors that are unknown to all of us.
The emerging problems that we as a profession see are open questions for the time being unanswered;
- The different value of real estate on the coast and e.g. Slavonia, therefore, the problem of justice
- Messy land registers and possibly questionable possibility of detecting all real estate
- Some of the properties are not of market interest either for rent or for sale
- Statistics show us that not a single country in the world has solved the problem of the availability of real estate only by introducing a property tax. Those who have addressed it or at least mitigated it have done so with a comprehensive package of measures that includes both natal policy and education and a range of other available tools.
We all welcome the efforts of the Government to spot the problem and tackle the issue of affordable housing, but we are not sure if this real estate tax will bring all these empty apartments that are being talked about, and whether these and such empty apartments will be of market interest to buyers.
Conclusion; Property tax is not the only factor in the state of the real estate market. We are sure that a certain contingent of real estate, what for rent what for sale will appear on the market, but how much impact this will have on the market itself and real estate prices remains to be seen.
Any other prediction would enter the sphere of speculation, and we as serious market players do not want to allow this.
published on 20.90.2024 year