At exponential rates, the properties entering the queue for auction have been increasing since 2021, that is, after the end of the pandemic, and their number has now surged to nearly 300,000 properties in the first quarter of 2026. A very small percentage of these properties are ultimately sold through electronic auction and most are disposed of at a discount, mainly to real estate companies, most of which belong to the servicers’ groups.
The data from the quarterly report of IOBE and Cepal on private debt reveal the dramatic increase in the number of properties waiting in line for auction in recent years and outline one of the most serious problems in the management of Greeks’ “red” private debt: the substantial inability to liquidate collateral.
Since 2021, when the cumulative number of properties awaiting auction was at low levels (about 20,000 to 25,000), by the first quarter of 2026 it had increased more than tenfold and was approaching 300,000 properties, with most of them (53%) being urban (residential). This huge number concerns “auction events” and not unique properties, as the lack of buyers leads to the continuous recycling of properties that could not be sold. Even with this note, however, the number of nearly 300,000 properties waiting for the electronic “hammer” is enormous and worrying.
“Dive” in absorption rates
While properties awaiting auction are constantly increasing, auction success rates are declining. The market is showing strong signs of fatigue: while the gross absorption rate (in terms of number of properties) had reached 18% in 2024, it subsequently followed a downward course and shrank to 14% in the first quarter of 2026.
Based on property values, the absorption rate falls below 12% in the same period. The overwhelming majority of properties, therefore, remain unwanted.
In the hands of real estate companies at a discount
The data reveal a market where interested parties maintain a wait-and-see stance in order to achieve a price “haircut”. In the first rounds, at least 70% of properties do not attract bidders. Buying interest “wakes up” from the third round onward, raising the absorption rate to 17.9% and to 23% (in the 4th round). The reason is clear: from the third round, a mandatory 20% discount is applied to the first-offer price.
At the end of the day, private buyers are very few. Most properties sold through auctions end up in the hands of real estate companies. In fact, many of these property management companies belong to the very groups of claims management companies (servicers) that expedite the auctions. Essentially, the properties are recycled among professionals who buy at the maximum possible discount.
IMF: What is going wrong
A thorough analysis of the problems in auctions was recently carried out by the International Monetary Fund in a special report on servicers, where it emphasizes that over the past four years, the average auction success rate was about 20%. Of the successful auctions, about half concern apartments. In addition, at least 60% of all properties sold are acquired by real estate companies.
According to the Fund, the problems in auctions are many:
- A serious disincentive is the fact that buyers do not have access to inspect the interior of the property before the auction. The problem is exacerbated by the widespread existence of unauthorized renovations and additions in Greek properties. The inability to resell a property acquired through auction, unless these irregularities are first regularized, increases risks and limits bank financing.
- The issuance of a payment order by the court takes on average 12 months. In addition, the law imposes a mandatory waiting period of seven months between seizure and the first auction. Borrowers’ objections at various stages of the process also slow the sale, as their adjudication usually takes from one to more than two years.
- Significant delays are observed in the distribution of auction proceeds and in the transfer of ownership, mainly due to notaries and the lack of digitization in certain land registries.
- An additional burden for buyers (creditors) is the requirement that a full guarantee be maintained for a period of five years after the auction (as security against legal challenges to the ranking table) in order for the proceeds to be collected.
- Finally, the social stigma associated with the purchase of seized properties continues to be a deterrent factor for the expression of interest by private individuals.