A Proposal of a Mass Appraisal System in Greece with CAMA System: Evaluating GWR and MRA techniques in Thessaloniki Municipality

Abstract

Property tax in Greece is levied since 1985 not on Market Values but on the “objective value” of the properties as it is defined by the Ministry of Economics. It forms a non-flexible system, with market-irrelevant and unrealistic values, inducing land-policy practices and potential political cost to each periodical update. Furthermore, instead of adjusting taxation levels to the current economic reality, the real estate market is experiencing further burdening through approximately 40 different property taxes and levies, leading to further shrinking and depreciation. The authors believe that a fairer taxation system could significantly assist the property sector in Greece. Thus, through this paper and by studying and analyzing best practices from other countries, they propose models that can be applied with the use of existing data in Greece. This work aims to identify the critical parameters that affecting property values in Thessaloniki to create a Market Value forecasting tool for a fairer taxation system, to highlight the importance of a GIS system for this purpose and to compare the results of MRA with the use of SPSS with those of GWR in ArcGIS environment. For the purposes of this study, the Municipality of Thessaloniki was chosen due to its very well organized portal with significant and well organized geographical data and because authors manage to access some data from the Central Bank of Greece, regarding property valuations.

Keywords

• property market value
• multiple regression analysis
• ordinary least squares
• geographically weighted regression
• geographic information systems
• mass appraisals
• property taxation