BoG sees restart of the real estate market

The real estate market has withstood the onslaught of the pandemic. Despite the pressures of 2020 and the beginning of 2021, as reflected in the Golden Visa program data, the limited inflow of funds from abroad for the purchase of real estate, the reduced number of housing transfers, as well as the negative business expectations for housing construction , the real estate market, according to the report of the Bank of Greece on Monetary Policy 2020-2021, is resilient, both in terms of prices and construction activity, discounting the positive expectations of economic recovery and international demand for the Greek real estate market.

According to the report, the first five months of 2021, and especially the last two months, mark the beginning of a new period for the real estate market, during which the assessment of the effects of the pandemic on the market begins and the evaluation of the new data that have been formed. .

Despite market caution and a wait-and-see attitude from the onset of the health crisis, consistently positive expectations for the prospect of halting the pandemic, recovering tourism and restoring external investment demand have contributed to the resilience of both residential and commercial property prices.

In fact, despite the increased obstacles that arose in the completion of operations and investments due to the under-functioning of the relevant state services, the high standard market segment attracted strong interest and significant amounts of transactions from individuals, companies and investors.

Support for construction activity

The data show that the housing construction activity (ELSTAT data) continues to strengthen at the country level, recording in terms of building volume (cubic meters) an average annual increase of 4.9% in the first two months of 2021 (18.2% in 2020), while in the region of Attica the corresponding increases were slightly higher (6.5% in the first two months of 2021 and 23.0% in 2020). In addition, investment in housing (ELSTAT data, at constant prices) increased by 2.7% on an annual basis in the first quarter of 2021, compared to an increase of 15.6% in 2020, but remained low as a percentage of GDP (first quarter 2021: 0.9%).

According to the BoG, provided the final control of the pandemic and the full liberalization of activities and mobility of citizens continue, 2021 is expected to signal the restart of the market, within a framework of significant reorganizations.

According to the BoG, the change in mentality and needs will probably lead to a spatial and qualitative shift in demand, while the ongoing development and large-scale infrastructure projects are expected to further strengthen the trend of shifting and emerging new markets of interest.

Redesign of bureaucratic procedures

People in the market are calling for simplification of real estate transfer procedures.

In the context of the digital transformation of the state that has been taking place at a rapid pace in the recent period, the BoG notes that ultimately a deterrent to investment.

At the same time, the rapid completion of forest maps, after the required correction of land markings, as well as the acceleration and completion of the Land Registry can be the basis for a modern national spatial planning, which in terms of sustainability and environmental protection will give new impetus. development, protecting and promoting private and public real estate “.