After a long “dead” period, auctions of debts to the state have been resumed. Prosperty co-founder and CEO Antonis Markopoulos estimates that “an additional 14,000 properties will be put up for auction in the next 10 months, and 250,000 properties in the next 5-7 years.”
However, the properties that will be put up for auction in the next few years will have a significant impact on the Greek market. Indeed, over the past four years, according to Mr. Markopoulos, 148,000 properties with a total value of 18.3 billion euros have been put up for auction. However, only 13% of them found their buyer.
According to his estimates, the volume of “red” loans reaches 90 billion euros, and 1 million real estate objects act as collateral, 75% of which are residential. He even called the exploitation of this housing stock an investment opportunity.
The CEO of Prosperty spoke about the special market that exists in Greece – the auction market, noting that “The difference between the starting price and the final price is not very large. There is opportunity as long as the process improves.”
Assessing the overall dynamics of the real estate market based on data from the Prosperty platform, Markopoulos noted that “There is significant demand. The main problem is the supply of real estate, especially expensive ones. In essence, there is no correct pricing of real estate.” Therefore, despite the difficult economic situation, characterized by high interest rates and significant costs, the demand for real estate is high as it remains a safe haven in these uncertain times.”
PS A recent example: at the auction that took place this week, the starting price was exceeded by 50%…
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