A new regulatory framework is being sought by estate agents, modelled on the certification requirements for insurance agents, in an effort to reduce the number of people operating illegally in the sector and protect consumers.
According to estimates by Lefteris Potamianos, president of the Athens-Attica Association of Real Estate Agents, 6,500 professionals operate legally in the sector, while around 36,000 operate illegally.
Market participants say the situation has “got out of hand” in recent years as the sector has grown, and are calling for immediate government intervention.
“With a statutory declaration on gov.gr, anyone can become an estate agent. That declaration gives your friend, neighbour or acquaintance the right to open the property and show it to a prospective buyer,” market sources told Euro2day.gr
A new effort to bring the sector under a regulatory framework is under way. At a meeting in July between Mr Potamianos and George Pitsilis, governor of the Independent Authority for Public Revenue (AADE), the establishment of a register of estate agents was discussed — an issue that is being considered.
However, industry representatives say there appears to be no new progress on this front from the Ministry of Development, which oversees the sector, despite estate agents’ contacts with the ministry in recent years.
Market self-regulation
Although there is broad agreement across the sector that a new regulatory framework is needed, some argue that the market is self-regulating and that the number of people operating illegally as estate agents will fall, albeit slowly.
“Clients have become more demanding and it is no longer enough for an estate agent simply to show the flat,” a senior executive at a well-known estate agency explains.
The upgrading of estate agencies’ services is one of the factors gradually reshaping the sector.
Larger, modern estate agencies have a range of digital tools for marketing properties, from drones for aerial photography and the production of high-resolution videos to 360° virtual tours.
New services offered by agencies also include Digital Staging & AI Redesign — the use of artificial intelligence to digitally transform a property, allowing prospective buyers to see how it could look after renovation.
At the same time, several estate agencies are broadening their services, offering technical and legal support as well as partnerships with banks to arrange mortgage pre-approval, and operating as one-stop shops for buyers and sellers.