Institutional reform as a rerequisite for the exploitation of public real estate assets

Abstract

The aim of the paper is to present, discuss and analyse the main obstacles that the interested foreign or local investors face when trying to reach the Greek real estate market. Since 2011, the Hellenic Republic Asset Development Fund has launched an ambitious project for the exploitation of the Greek public sector’s private properties. In order to achieve its targets a number of institutional changes are indispensable and have to be put forward as soon as possible. These changes have to do with the development of a modern planning and zoning system, an essential tax system reform and lastly the completion of the Hellenic Cadastre. We argue that the Hellenic Republic Asset Development Fund will be able to successfully implement its ambitious plan to attract significant international capital flows, if the above mentioned institutional obstacles, which obstruct the interested foreign investors from reaching the Greek real estate market, are removed. Finally, we offer a number of policy proposals regarding the necessary steps that needs to be followed by the Greek policy makers for the necessary institutional reform to be completed in due time. If they are ever implemented, then a friendly environment for the potential investors in the Greek real estate market will be created and fast, customized, investor friendly solutions for development projects on real estate assets currently belonging to the Hellenic Republic will become available. Eventually, all the above will hopefully contribute to the restarting of the Greek economy and fuel economic growth.