The e-auctions of foreclosed properties in Greece starts on April 27. The scheme should have been launched before, but the auctions were blocked by private lenders.
The traditional way of auctions in a courthouse, supervised by notaries, collapsed because of the continuous protests and juridical red tape. Due to recent legislation, the tax authority now can outsource the job to private consultants to determine the commercial values of real estates up to auctions. This became important because the previous method of calculating the price meant that the properties were offered at a higher sum than their market value.
The investors are expecting high capital gains thanks to the stabilised property market, the growing interest of tourists and the simple rental processes through the home-sharing platforms.
To understand this unique opportunity, it is enough to mention that before the new legislation, the banks had to buy back eight out of ten properties put on auctions. The prices were too high to attract national or international buyers. In March the number of properties held by financial institutes reached 15,000. There are not only industrial, commercial and touristic properties, but also lands, plots, houses and even parking places!
You can find here the official portal of the Greek e-auctions.
The necessary amount of investment in property for the permanent resident status in Greece is 250,000 EUR. This investment is enough to buy one or several real estates, even residential and commercial together to be able to start a business. Let’s see some completed auctions! Building plot in the little town of Patras bought for 170 EUR, or a retail shop on the coastal road in Portoheli rented for 320 euros. You could rent the Coffee shop and copy centre in the courtyard of the Court of the First Instance in Arta for 270 euros monthly. These property prices are more than beneficial and attractive offers in Europe. In Athen, the rental fees are higher, but still someone acquired the right to pay only 800 euros per month for a shop close the centre of the capital.
Pireus Bank introduced online auctions in December, a 49 square metre apartment in Patras was the most affordable piece, but the most expensive detached home in Thessaloniki’s Pylaia was sold still only a half a million euros, which is a significant investment.
The objective of the government to sell 600-700 properties per week.
Online auctions of foreclosed properties or reals estates owned by banks became an accessible and fast way to purchase an investment to obtain the resident status in Greece. And as the market recovers quickly because of the flourishing tourism sector, the property prices will increase fast to reach their real value. There is a chance now to invest in a qualifying real estate for the Greek permanent residence permit.
Are you interest in obtaining the permanent resident status of Greece? Ask for consultation here!