Mortgage demand grows, but banks avoid loan issues

Among the factors that have led to a drop in property transactions in Greece is the lack of any bank financing, as potential buyers are unable to get the necessary funding.

In previous years demand was particularly low, but in 2016 – according to the annual report of the Bank of Greece – demand started growing, especially in the second half of the year.

However, data showed that loan issues remained very low, amounting to 478 million euros last year, against 6.6 billion in 2010 and 15.4 billion in 2006, when the property market had reached its peak.

Banks say they toughened their loan criteria in the third quarter of 2016 in view of the rising demand.