Real estate auctions: out of 10, 1 was successfully completed

Auctions have started, and it looks like thousands more are expected to take place in the near future. The newspaper’s report that only 1 in 10 auctions are successful is alarming.

According to the publication naftemporiki.gr, “about 13% of real estate auctions are completed successfully, while in the next 10 months it is planned to hold 14 thousand new real estate auctions worth 1.35 billion euros. At the same time, the average cost of an object is about 109 thousand euros.”

Over the past 18 months, the period during which auctions took place, of the 95,906 properties that went under the hammer, 13,000 were sold, amounting to 1.5 billion euros.

The above data was analyzed as part of the 24th Prodexpo (an annual real estate conference) by Antonis Markopoulos, Managing Director and Founder of Prosperty (a real estate consultancy with a focus on technology and data mining). Explaining why the percentage of auctions ending in sales is so low, Mr. Markopoulos noted that “this is a special market and there is a taboo in it.” Some people are thinking about buying a property through this process, and at the same time, to buy a house through an auction, they need have all the money within ten days, they cannot take out a loan and do not have the right to preview the property“

https://rua.gr/news/bissecon/58629-zagorodnyj-dom-interes-grekov-vozrozhdaetsya.html

Also, according to the data he presented, from 2020 to date there have been 148,000 real estate auctions (totalling €18.3 billion) with an average property value of €128,000. There are only 19,200 successful auctions, which corresponds to 12.9% of the total. This period includes the years of the pandemic, when auctions were “frozen.”

Regarding the real estate price in 2024, overall the 24th Prodexpo was moderately optimistic, but caution is advised above all as the landscape is constantly changing due to geopolitical events.

According to Dimand CEO Dimitris Andriopoulos, the Greek real estate market has to cope with many risks, such as rising interest rates and construction costs, as well as the lack of basic infrastructure in cities, among others.

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