Mortgage

Approximately 10 billion leva from the gray economy, including bribes, tax evasion, and other illicit activities, must be clarified before Bulgaria adopts the euro. This process is expected to be challenging as these funds are currently hidden away, figuratively speaking, in "mattresses and jars."

The key elements of the new cadastre bill were presented by Minister of Digital Governance Dimitris Papastergiou and Deputy Minister Konstantinos Kyranakis during the cabinet meeting on Tuesday.

The main goals are to complete the cadastre by 2025, incorporate artificial intelligence (AI) into the legal review of contracts and streamline real estate transfer procedures.

Housing in Bulgaria remains more affordable compared to its Western European counterparts, a fact that contributes to the high rate of homeownership in the country. According to real estate brokers, about 92.5% of Bulgarians live in their own homes.

Demand for loans will be strong in the future, estimates the head of the National Bank of Greece, Pavlos Mylonas.

Having pumped 7 billion euros annually into the market over the past three years, demand for business and mortgage loans is expected to strengthen. "We carried out effectively all the actions we had previously announced," emphasized Mylonas on Thursday.

A holistic approach to private debt seems to be sought by the state and relevant bodies as a whole, as it is moving around 100 billion euros as a time bomb to the social foundations.

Home sales have recently ground to a standstill in Greece, as a large number of would-be buyers await the announcement of the terms and conditions of the new MyHome program, through which part of the mortgage interest rate is subsidized.

The Bank of Greece’s report on the real estate market presents a detailed analysis of the current situation. Over the past seven years, property prices have surged by 66.4%, and they are projected to increase by 10.4% in the first quarter of 2024. This growth rate is significantly higher than the rise in income.

The housing market is running out of steam, as for a third consecutive quarter, investment has been declining.

After the activation of the measures to tighten conditions for obtaining a Golden Visa, concerns are growing about the possibility of a further decrease, while efforts turn to raising mortgage issues, which are also at extremely low levels.

Demand for loans in Cyprus continued to fall in the first quarter of 2024, with banks blaming high interest rates for the decline. According to the Central Bank's Bank Lending Survey, banks also tightened the rules for giving loans to businesses, after three quarters of no changes. However, the rules for loans to households stayed the same.

One in every three taxpayers (about 2.1 million) who declares an income of up to 5,000 euros per annum does not have access to bank loans for house purchase, as by definition they lack the ability to service a mortgage.