Since 2021—that is, after the end of the pandemic—the number of properties entering the auction queue has been growing at an exponential rate, and by the first quarter of 2026, that number has skyrocketed to nearly 300,000. A very small percentage of these properties are ultimately sold through online auctions, and most are sold at a discount, primarily to real estate companies, the majority of which belong to servicer groups.
Data from the quarterly report by the IOBE and CEPAL on private debt reveal the dramatic increase in the number of properties awaiting auction in recent years and highlight one of the most serious problems in the management of Greeks’ “non-performing” private debt: the practical inability to liquidate collateral.
Since 2021, when the cumulative number of properties awaiting auction was at low levels (approximately 20,000 to 25,000), by the first quarter of 2026, this number had increased more than tenfold, approaching 300,000 properties, with the majority (53%) being urban properties (residences). This enormous number refers to “auction events” rather than individual properties, as the lack of buyers leads to a continuous cycle of properties that could not be sold. Even with this caveat, however, the number of nearly 300,000 properties awaiting the online “auction hammer” is enormous and alarming.
A “Plunge” in Absorption Rates
While the number of properties awaiting auction continues to rise, auction success rates are declining. The market is showing strong signs of fatigue: while the gross absorption rate (in terms of the number of properties) had reached 18% in 2024, it subsequently followed a downward trend and shrank to 14% in the first quarter of 2026.
Based on property values, the absorption rate fell below 12% during the same period. In other words, the overwhelming majority of properties remain unsold.
In the hands of real estate companies at a discount
The data reveal a market where prospective buyers are adopting a wait-and-see attitude in hopes of securing a price “discount.” In the first rounds, at least 70% of the properties fail to attract bidders. Buyer interest “picks up” starting in the third round, raising the absorption rate to 17.9% and 23% (in the fourth round). The reason is clear: starting in the third round, a mandatory 20% discount on the initial bid price is applied.
At the end of the day, there are very few private buyers. Most properties sold through auctions end up in the hands of real estate companies. In fact, many of these real estate management companies are owned by the same groups of debt collection agencies (servicers) that expedite the auctions. Essentially, the properties are recycled among professionals who buy them at the steepest possible discount.
IMF: What’s Going Wrong
The International Monetary Fund recently conducted a thorough analysis of the problems with foreclosures in a special report on servicers, in which it highlights that over the past four years, the average success rate of foreclosures has been approximately 20%. Of the successful auctions, about half involve apartments. Furthermore, at least 60% of all properties sold are purchased by real estate companies.
According to the Fund, there are many problems with auctions:
- A major disincentive is the fact that buyers are not allowed to inspect the interior of the property before the auction. The problem is exacerbated by the widespread existence of unauthorized renovations and additions to Greek properties. The inability to resell a property acquired at auction—unless these unauthorized alterations are first rectified—increases risks and limits bank financing.
- It takes an average of 12 months for a court to issue a payment order. In addition, the law mandates a seven-month waiting period between foreclosure and the first auction. Objections raised by borrowers at various stages of the process slow down the sale, as resolving them typically takes anywhere from one to more than two years.
- There are significant delays in the distribution of auction proceeds and the transfer of title, mainly due to notaries and the lack of digitization in certain land registries.
- An additional burden for buyers (creditors) is the requirement to maintain a full guarantee for a period of five years following the auction (as security against legal challenges to the priority ranking) in order to receive the proceeds.
- Finally, the social stigma associated with purchasing foreclosed properties continues to act as a deterrent to interest from private individuals.