GREECE Law and Practice Contributed by: Nikolaos Koulocheris, Ioannis Charalampopoulos, Rozita Karasso and Dimitra Kotsovelou, Machas & Partners
1. General 1.1 Main Sources of Law
phase involving a major return of capital and dividend distributions, as well as the ultimate merger of two listed REICs with a combined real estate investment portfolio with a gross asset value exceeding EUR280 million. Real estate stakeholders are embracing block - chain, PropTech and DeFi, repurposing offices for residential use, exploring alternative financ - ing, navigating foreclosures, and adapting to shifting interest rates and central bank policies. 1.3 Proposals for Reform Proposals for reform that would make the Greek real estate market more efficient, transparent and attractive to investors could be: • A clear legal framework for escrow arrange - ments with segregated client accounts could streamline asset and share deal transactions, providing security and transparency for inves - tors. • Establishment of alternative investment funds (AIFs) with less strict limitations in real estate eligibility criteria would attract domestic and international investment, enhancing real estate market liquidity and enabling large- scale projects. • Completion of the recording of all private and public property in the Cadastre would ensure accurate property ownership records, reduce disputes and improve transaction security. • Digitalisation and simplification of property transfer procedures would speed up transac - tions, lower costs and reduce administrative burdens, benefiting both buyers and develop - ers.
The right to ownership in Greece is protected by the Constitution (Article 17), which ensures property rights, subject to compliance with laws, especially those relating to public interest and environmental protection. The Civil Code, par - ticularly Articles 1002 and 1117, forms the foun - dation of real estate property law, including the division of plots as well as horizontal and verti - cal ownership. Laws 3741/1929 and 1024/1971 govern the establishment of horizontal and vertical property. Additional regulations are found in the Code of Civil Procedure and Laws 2308/1995 and 2664/1998, which oversee pro - cedures at the Cadastre Offices. Law 1337/1983 introduced measures for regulating construction outside urban planning areas, focusing on envi - ronmental protection. Established case law from the Supreme Court and civil courts also plays a key role in shaping property law in Greece. 1.2 Main Market Trends and Deals The key trends in the real estate market over the past 12 months include increased demand, ris - ing property prices increased foreign investment, more short-term rentals, and efforts towards sus - tainability and energy efficiency. Rising inflation and interest rates have slowed property sales, increased borrowing costs and reduced afford - ability. Nevertheless, the real estate market has shown an upward trend. In 2024, the value of real estate transactions surpassed EUR4 billion. In December 2024, the first ever merger of real estate investment companies (REICs) was com - pleted with the merger by absorption of Inter - continental International REIC by BriQ Properties REIC through a multi-phase transaction, includ - ing a real estate asset deal with a total gross consideration of EUR60.5 million, a distribution
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