Banks have taken battle positions to maximize the goodwill that will arise from the upward cycle in which the domestic real estate market has entered.
The large stock of approximately 20,000 properties they currently have in their portfolios after a three-year consolidation period of balance sheets, which will grow as auctions increase, will be a significant source of boosting their profitability in the coming years.
Banking sources point to a white hole, which can provide high returns to the industry, provided there is effective asset management of these assets, either directly or indirectly through loan and credit management companies.
In addition, there are high expectations for financing opportunities for small and large transactions, at a time when the liquidity of systemic groups is high.
The strategy
According to the same cycles, despite the climate of uncertainty and the pressures that household and business incomes will face due to the energy crisis, demand is expected to remain high in the coming years. In this context, they predict an annual increase in prices around 5% – 6% by 2025.
The goal of the banking administrations is to make available to both Greeks and foreign investors, a number of properties each year that will not upset the balance between supply and demand, negatively affecting values.
For the same reason, banks are not, at least at this stage, willing to liquidate residential and commercial real estate at significantly discounted prices. Therefore, they promote those for which there is a strong market interest.
Moreover, in addition to sales, additional income can arise from the utilization of the real estate they have in their portfolios. That is, their lease, at a time when rents are at a high of many years.
Jobs from new loans
However, in addition to direct revenues from the sale and operation of real estate, banks also have to benefit from the financing of related transactions.
It is estimated that by 2026 the relevant works could even reach 20 billion euros, significantly enhancing their sound assets and contributing significantly to the increase in interest income.
In particular, the following funding opportunities are presented:
– The properties purchased during the auction process by the accelerators themselves, ie the investors who acquired non-performing mortgage openings
– The final buyers who acquire real estate either through auctions or directly from funds and banks that they own
Also, great prospects for strengthening the work for the banks are opened in the field of financing the transfer transactions of non-performing portfolios.
These relate to either secondary movements for the sale of doubtful receivables outside of bank balance sheets or primary movements for the transfer of NPEs.
Latest News
Developing the Blue Carbon Economy in Greece
Can Greece make money by protecting its marine environment?
EIB Appoints Greece’s Ioannis Tsakiris as New VP
Ioannis Tsakiris started the new role May 1 after spending 15 years at the European Investment Fund (EIF) and serving as Greece’s Deputy Minister for Development and Investments
Two Greek Beaches in Top 50 in the World
Both Greek beaches were on the list of the best beaches in Europe too
Eurostat: Greece 20th out of 26 European States in Hourly Average Wage
According to figures released by Eurostat, the Benelux Grand Duchy of Luxembourg, one of Europe’s hubs for finance, is in first place
Greek Property Renovation Surge amid Economic Constraints
This has led to a notable escalation in renovation costs, with average prices per square meter exceeding previous norms and reaching even 1,000 euros in premium locations
RRF: Additional €5.1bln Funds for Subsidies to Greece in 2025
By April 22, funds totaling 5.75 billion euros had been transferred for approved projects of the Recovery Fund to entities within and outside the general government and final recipients
OECD: Greek Economy Resilient with 2% Growth Forecast for 2024
However, the OECD highlights challenges including the need to enhance productivity and fiscal adjustment due to high debt levels.
Challenges and Delays in Greece’s Hydrocarbon Exploration
Sources disclose that the petroleum companies holding the concessions are seeking partners to jointly invest and share the costs of exploration and drilling.
Greek Beach Visitors Can Report Violations on New ‘MyCoast’ App
Greek authorities hope the newly-launched, free ‘MyCoast’ app will help clamp down on public beach violations
BoG Figures Confirm Banner Year for Greek Tourism in 2023
20.6 billion euros in related revenues topped the previous year’s figure by 16.5%