Mortgage

Real estate market professionals believe that a moderate reduction in house prices is possible in the coming months, provided the current economic climate is maintained.

National Bank (NBG) is launching a mortgage program for young people in an attempt to respond to their increased housing needs, but also to mobilize the mortgage market, which is sluggish due to low demand.

The Bank of Greece is establishing a ceiling on the issue of new mortgages to prevent excessive lending.

Governor Yannis Stournaras has decided to set a maximum loan limit in relation to the value of the property and a maximum limit for servicing the debts from housing loans in relation to the total income of the borrower.

Greece continues to have the worst performance in household credit, registering a consistently negative rate, which was -1.7% in January against a 0.3% increase in the eurozone, according to a report published on Thursday by DBRS Morningstar, focusing on the "slow production of new mortgage loans."

Bulgaria witnessed a staggering surge in mortgage loans in 2023, totaling a monumental BGN 6.39 billion. This unprecedented figure, revealed by the Bulgarian National Bank, marks a remarkable 18.77% increase from the previous year, fueling optimism within the property market.

Banks are responding to the climate of caution among households as regards taking out a loan with new cuts in mortgage rates, in a bid to spark the interest of potential new buyers. They are also extending, until the end of the year, the interest rate freeze in force since last May for existing borrowers.

The Bank of Greece, in cooperation with lenders, is establishing limits on mortgage amounts in relation to the commercial value of the property and the monthly installment to be paid by the new borrowers.

It was decided that the Hellenic Corporation of Assets and Participations (EESYP), widely known as Hyperfund, was to be established in August 2015 as part of the agreement with the country's European lenders for the 86-billion-euro loans of the third bailout agreement.

The platform has opened for the submission of applications by property owners who have insured their properties, for the tax office to calculate the 10% discount on the Single Property Tax (ENFIA).

Owners can apply until February 22 on the myProperty platform, with the necessary checks following for the eligibility of applicants.

According to Yavor Peychev, CEO of "Imoteka" a part of the "Realto Group", Bulgaria can expect a stable year, with the number of real estate transactions remaining similar to that of 2023, and a gradual increase in prices for quality newly-built properties in major cities. This information was shared during the presentation of data on the current state of the market to journalists.