Investors expectations for "cheap real estate" fell short
Cheap real estate was expected due to the crisis brought by the pandemic but the measures of the governments saved the day. E-auctions to brgin in September.
"I have never seen such a different and divergent real estate market in my career," says an experienced executive of the domestic real estate, describing the image that prevails in the market today, after almost two years of the pandemic.
According to ered.gr, many investors (mostly foreigners) expected that a "wave" of red-flagged assets would go on sale in the market with significant discounts. as their owners were facing problems and the sale of the property would be a way to survive in the in thr current situation, being without income.
However, the government - following the tactics of other governments abroad - gave a "helping hand", by offering flexible arrangements of loans and debts and by "freezing" liabilities, with the result that the real estate marked dodged that bullet.
"This has not only resulted in more competition for the desired properties (mainly commercial properties and hotels) that are on sale lists in the market but also to buyers having to greatly improve their offers," said the same source. There are properties for sale where buyers become aggressive in their offers, with significant amounts and competitive offers through second or third invitations. What is interesting, however, is the number of offers that are in prices higher than 2019 (ie before the crisis) while the Delta variant continues to threaten all the economies of the world.
Properties go… under the hammer
September is expected to be "hot" as the electronic auctions by banks and servicers will start. However, both sides have already indicated that they will not affect vulnerable households and certainly properties located in areas affected by the recent fires. Financial institutions are looking for profits from goodwill, since prices in domestic real estate have not fallen even during the pandemic. In fact, in some cases they have recorded an increase of 4% to 5%.
Well-known properties will again be found in the spotlight, such as that of Renault, which is located on the National Road of Athens - Lamia and has an e-auction scheduled for September 8. At the same time, on September 29, a prime commercial property on Panepistimiou Street is expected to be put up for auction. Emblematic properties, however, as ered.gr information says, will gather interest in auctions outside Attica, such as commercial properties in the "heart" of Rhodes that go under the hammer on September 22.