ECONOMY

Main sellers of properties are lenders

main-sellers-of-properties-are-lenders

Almost a third of residential property transactions in Greece today concern direct sales by the banks, a trend set to increase further during the course of 2019.

The number of properties being bought directly by the banks in the context of the online auctions is already in constant growth. The next step is an expansion of the effort to sell those properties using the network of bank branches.

A survey by the National Association of Realtors (EPPA) on residential property transactions conducted in the second half of last year showed that 27.8 percent concerned properties belonging to banks. Another 5 percent were sold following a debt haircut by the banks, with 65 percent of the properties sold bearing no more burden than the actual sale price.

A further finding of the survey indicated that 84.7 percent of transactions were conducted entirely in cash.

Meanwhile, the 24 percent value-added tax on newly built properties (not concerning main residencies) is proving to be a levy with very poor revenues for the state, as only 3 percent of transactions made in the second half of 2018 included this VAT form.