In 2022, the Greek real estate market is expected to be on a trajectory to recover the “acquis” that had been created until 2019 and were lost during the last two years, due to a pandemic. In fact, already in 2021 a significant part of the losses caused by the pandemic and the economic recession of 2020 was covered, notes Dr. George Mountis, managing partner of Delfi Partners & Company, a real estate consulting company.
“If the pandemic allows it, in 2022 we expect to see greater stabilization and recovery. The Greek real estate market has significant prospects for a steady recovery, as there is significant interest in various categories of real estate. The interest of domestic buyers for home ownership is returning, while we estimate that after the pandemic shock, investments in real estate that can be utilized within the model of short-term leases will record strong demand from non-professional investors.
At the same time, the interest for a holiday home and for the utilization of the Golden Visa program is intensifying “, notes Dr. Mountis. Regarding prices, according to Delfi, an increase in the final selling prices of new constructions is expected due to the increase in the cost of raw materials. However, the increase will depend on the duration of inflation, the willingness of banks to lend and the course of the pandemic.
“The demand from foreign institutional investors is now heating up, who are looking for profitable investment opportunities, mainly for tourist real estate, but also for large single developments that will be launched in the near future. Demand for modern storage is also strong due to the rapid rise of e-commerce. Unless there are other unpleasant developments on the health front, we believe that 2022 will be the year of implementation of significant investments that have been postponed in previous years. “We already see in practice that the market is recovering rapidly and there is huge investment interest,” he said. In the field of investment, Dr. Mountis foresees further sales of real estate portfolios by banks and asset management companies, “in order to reduce the relevant exposure to their balance sheets but also to make the best possible use of these assets, which may in the end of the day to become a source of profit if they are used properly and receive the appropriate management through specialized consultants “.
In this context, Delfi Partners has created an online sales platform (delfiproperties.gr), on which a significant number of bank properties available for sale have been posted. As for non-performing loans, according to Dr. Mountis, with the current data, it does not seem that there will be a new big wave of red loans. “Some new cases may be recorded, but they will not be so many as to offset the continuing decline that results from banks’ inorganic actions to limit troubled assets on their balance sheets,” he said.
Of course, the fact that non-performing loans have left the banks’ balance sheets does not mean that they have ceased to be a burden for the Greek economy. Therefore, “there should be the right tools and the necessary legislative flexibility for quick, practical and fair solutions,” says Dr. Mountis.
Source: kathimerini.gr
