Challenges and Opportunities in Greece’s Property Auctions

As property prices soar by 60% over the past six years and rents continue to climb, property auctions have become a viable option for households to navigate the housing crisis.

The surge in auction interest isn't limited to individuals; real estate firms are also turning to foreclosure auctions due to a dwindling stock of well-located, reasonably priced properties.

In recent years, the attractiveness of property auctions has increased significantly. For example, in 2019, a 48-square metre apartment in Pagrati sold for 54,000 euros, nearly 95% above the starting price, driven by demand for short-term rentals.

Despite the potential rewards, property auctions can be complex and fraught with risks. This complexity is highlighted by the fact that only 10%-15% of auctions are completed, with around 150,000 properties sold over the last four years, totaling over 18 billion euros in value.

Michalis Athanasiou, head of a real estate agency specialising in auctions, explains that although auctions present significant opportunities, they also harbor pitfalls. The online auction process, which began in February 2018, requires prospective buyers to thoroughly study property details and register on the e-auction platform. However, buyers can only view properties externally and must navigate the auction process with the help of professionals to avoid costly errors.

Bidders must be cautious, as mistakes in the bidding process can be expensive. For example, mistyping a bid amount can result in forfeiting the guarantee, which is 30% of the first offer. Additionally, winning a bid does not guarantee immediate property possession due to possible legal challenges from debtors.

Furthermore, buyers must pay the auction price within 10 working days and often face issues like lack of access to property keys and potential property damage from previous owners. Also, if the property is leased, evicting tenants can be a lengthy process.

Athanasiou notes that many auctioned properties suffer from extensive damage, either from former owners or due to their age, emphasising the need for bidders to be well-informed and prepared for these challenges.

Read more: Property Market in Greece

(Source: Ekathimerini)