According to new data released by Bank of Cyprus, from early 2019 the bank has sold collateral real estate worth approximately €1.3 billion. This amount significantly exceeds the value of properties that entered the bank’s possession during the same period, which totals €0.5 billion. This ratio highlights a strong trend toward reducing problematic assets and accelerating portfolio turnover.
The bank noted that it is prioritizing the sale of properties acquired through debt-for-asset swap agreements, a strategy that helps reduce risk and increase liquidity.
Comparison of Results: 2024 vs 2025
In the first nine months of 2025, the bank sold real estate worth €231 million — nearly triple the amount recorded during the same period in 2024, when sales totalled €82 million.
Profit from these transactions also grew, reaching €10 million, compared to €5 million a year earlier. A significant part of the sales relates to land plots, which account for around 40% of total sales value.
From January to September 2025, Bank of Cyprus concluded 289 sale agreements worth €250 million. In comparison, during the same period in 2024, the bank sold 367 properties worth €94 million.
Additionally, by the end of September 2025, the bank was in the final stages of completing new deals worth €26 million, of which €14 million were already legally finalized.
Reduction of Non-Performing Real Estate Portfolio
The value of properties transferred to the bank through debt-for-asset swaps dropped to €9 million in the first nine months of 2025 — down from €28 million in the same period of 2024.
As of 30 September 2025, the total remaining book value of properties under the bank’s management was €419 million, compared to €764 million in September 2024 — a reduction of nearly half.
This sharp decline is largely attributed to a major sale completed in June 2025, which significantly reshaped the portfolio.
As a result, by mid-2025 the bank had effectively achieved its target of reducing the managed real estate portfolio to €0.5 billion by the end of the year. This confirms ongoing balance-sheet improvement and a strong rise in investor interest in the Cyprus real estate market.
Cyprus Market Trends in 2025
According to analytics from Q3 2025, demand for land and residential property in Cyprus continues to grow amid increasing inflows of foreign investors and stabilizing economic growth in the EU.
The strongest activity is observed in Limassol and Larnaca, where transaction numbers are steadily increasing—particularly in mid-range housing and commercial real estate.
Additional momentum comes from the expansion of urban redevelopment programs, which make many properties more attractive.
Experts predict that through 2026, the Cyprus real estate market will maintain its positive momentum, and banks will continue reducing their portfolios of collateral properties thanks to rising investment interest in the Mediterranean region.