In 2023, there is a provision on the introduction of an upper limit (ceiling) in the amount of 3% of the permitted rent increase commercial real estatesuch as offices, shops and warehouses. In particular, based on its recent amendment Development Departmentincluded in article 96 of Law 5007/22, it cannot be exceeded 3% on annual rent adjustments for specific property categories and contracts, what also applied in 2022. It is recalled that real estate investment companies (REITs), shopping centers with an area of ​​at least 15,000 m2, 100% state-owned companies (and their subsidiaries), as well as companies owned by alternative investment organizations are exempt from the ceiling.

The purpose of this arrangement is to avoid large and abrupt adjustments to those contracts that provide for annual rent increases in line with inflation. According to TOMATO (Panhellenic Federation of Property Owners)“This regulation is directed against small and medium-sized property, it is one-sided and does not have any counterbalance in its favor, such as, for example, the reduction in rent taxation that is now needed, and at the same time leaves large property and the state alone.”

The aim is to avoid large contract adjustments that increase inflation.

A related circular published by POMIDA yesterday attempted to clarify some of the issues that arise, such as when an owner/landlord can legally demand non-regulation and an agreed rent adjustment. According to POMIDA, this could happen if the rent remained the same for a number of years, so the indiscriminate application of this provision is burdensome and offensive to the landlord. In fact, POMIDA estimates that the latter can request and receive a higher rent in excess of the 3% limit if the low initial rent was set for a short period of time at the beginning of the lease as part of an agreement with the tenant. . Also, the same can happen in cases of termination of the lease and its revision in the context of the corresponding extension.

Another common question landlords have is how they can protect themselves in cases where they have agreed with the tenant to increase the rent by more than 3%, but then the latter backs down and demands a refund or offset of the excess amount. paid. According to POMIDA, for such an agreement to be binding on both parties, it must be in writing and later than the date of publication of the 2023 Amendment Bulletin.

According to POMIDA, the written agreement between the two parties must clearly state that the contracting parties are aware of the existence of this limitation and that the tenant expressly waives the right to claim any amount in excess of 3%.