RAPID CHANGES IN THE REAL ESTATE MARKET WITH THE INTRODUCTION OF NPLS MANAGEMENT COMPANIES IN REAL ESTATE

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During the 21^st web conference of Prodexpo, the CEOs of management companies of “Red loans” (Intrum Hellas, Cepal Hellas, doValue Greece) officially announced their introduction to property management through the establishment of subsidiary property management companies.

Intrum Real Estate, doValue Greece Real Estate Services, and Qualco Real Estate services will be the important key “players” who will shape the real estate market in Greece.

Regarding the property potentials, Mr. Georgakopoulos (CEO of Intrum Hellas) estimated that the upturn of residential properties will continue in 2021, while in commercial real estate, some categories which seem to have already moved negatively (hotels, retail shops) will continue to be pressured, while others (good logistics infrastructure, medium-scale office buildings with high qualifications) will have an ascending route.

The institutional investors, as mentioned by Mr.  Georgakopoulos, currently remain in holding positions, while they are expected to move during 2021, since the Greek real estate market is much more attractive than Italy, Spain, Portugal, Ireland. Indicatively, in logistics and their performance in comparison to 10-year bons, the spread amounts to 5,4% in Greece and 2,5% in Italy.

Mr. Panousis (CEO of doValue Greece) moved in the same direction, by mentioning that Covid has brought an international correction in property prices and this is relatively smaller in Greece. This fact is due to the long-year crisis in the Greek market, during which the property prices have fallen by 35%-40%. The rebound of prices during the past two years has been impeded by Covid and lost its momentum, and therefore the prices did not reach their peak in order to subside on a larger scale.

Mr. Panousis noted that property investors are in a holding position and this results in delays in securitizations, as well as retrievals from properties (NPLs securities).

Mr. Athanasopoulos (CEO Cepal Hellas) mentioned that administrators have adopted a positive macro-scenario for the Economy from 2021, which will positively affect the interest of property investors. As he said, no withdrawals of investors are noted in property transactions and the liquidity procedures have “frozen”. Mr. Athanasopoulos added that the current situation is temporary, while the investors’ interest will be enforced due to the positive macro-scenario for the rebound of the Economy, in combination with the low starting point of transactions of institutional portfolios, while the market liquidity will be furthermore enforced with the introduction of Servicers in the property management.

Mr. Vardaramatos (CEO Quant) estimated that increased investment demand will be noted in logistics, while e-commerce is gradually expanding, as well as for hotels from foreign investors and tour operators. The revenues and benefits will be shown in time, as he said. The administrators were mentioned in the context of arbitrary legalization, which is an important issue for the market, while the Union of Management Companies has proposed suggestions for its resolution. The regulation of this issue is, as they said, crucial, both for banks and investors who own or wish to acquire properties, while it may expose the assurances of “Iraklis” to the risk of fallout.