The number of deals in commercial real estate in Greece this year are expected to increase due to the tourism sector's strong performance and investors drawn to properties taken from the massive pile of bad loans being managed by Greek banks, said Resolute Asset Management.
In its annual report, the UK based asset manager said that it expects major transactions from Greece's real estate investment companies and that distress funds will be drawn to properties tied to non performing loans.
'Real estate transaction volume is expected to increase for prime assets, with institutional investors targeting mainly retail/office and hotels," the report said.
With more than one in two loans on their books in the red, amounting to some 110 billion euros, Greek banks have agreed with European banking regulators on NPL reduction goals with the initial results expected to appear in the second half of the year.
The rate of foreclosures is seen picking up due to the introduction of electronic property auctions, market experts say.
But delays in the legislative framework of other tools needed to reduce bad loans, such as the introduction of out of court settlements, may result in banks missing these targets.