
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

Greek Government Reshuffle Brings in More Young Technocrats
Greek PM Mitsotakis has brought in younger leaders and technocrats in a bid to accelerate the government's efforts at modernization and efficiency, according to New Democracy insiders

Greece’s New Government Members Sworn in at Presidential Mansion
Greece's new government members were sworn in on Saturday morning and head straight to work through the first meeting of the new cabinet.

Moody’s Upgrades Greece to Investment Grade, Ending Crisis Era
The rating agency raised Greece’s long-term credit rating to Baa3 from Ba1, with a stable outlook.

EFET on World Consumer Day: Humanity Faces New Challenges
This year’s message emphasizes the need for a transition to sustainable lifestyles while safeguarding consumers’ legally recognized rights. This means ensuring access to essential goods such as food and energy, as well as health and safety.

Athens Hotels Lead Europe in Value Growth for Third Year
Over the entire period from 2015 to 2024, the average annual increase in hotel value was 6.1%.

Unemployment Rate in Greece Down 8.9% in January: IOBE
The unemployment rate in Greece recorded a further decline in January 2025, reaching 8.9%, according to the latest Foundation for Economic & Industrial Research (IOBE) report.

Demand for Short Term Rentals in Greece Surges Ahead of Easter
Among the most popular Easter destinations from Good Friday to Easter Monday are Corfu, Hydra, the Peloponnese, Ioannina, Patmos, Loutra Edipsou, Kavala, Thassos, and Pelion

Opposition Reacts Strongly to Greek Government Reshuffle
PASOK's spokesperson, Kostas Tsoukalas, characterized the reshuffle as a clear indication of Mitsotakis' "strategic deadlock."

Greece’s Economy Awaits Moody’s Verdict on Investment-Grade Rating
The stock market has reflected strong performance, with the general index showing resilience and a lack of inward-looking caution.

Greek PM Reshuffles Cabinet after No-Confidence Vote
The most notable changes in the Greek cabinet reshuffle include Kostis Hatzidakis being appointed Deputy Prime Minister and Kyriakos Pierrakakis taking over as Minister of National Economy and Finance.