While a number of political parties are preparing more than thirty draft laws that could change the rules for the sale of foreclosed real estate, the Cyprus Banks Association and ACB E-Auctions presented an updated overview of how the electronic auction platform operates. Today, this digital mechanism plays a key role in the foreclosure system and effectively determines how this segment of the real estate market functions.
Since the platform’s launch on December 18, 2019, more than 20,800 properties have been listed on it. Representatives of the banking sector emphasize that electronic auctions are conducted transparently, according to clear rules and on equal terms for all participants. Any legislative changes are immediately incorporated into the system’s operation, which helps avoid legal gaps.
Transparency and real competition
Today, about ten thousand users from Cyprus and abroad are registered in the ACB E-Auctions system. Notably, more than one third of auctions are suspended even before bidding begins because debtors and creditors reach a compromise solution. This indicates that the auction procedure itself often becomes a stimulus for negotiations.
At the same time, the platform demonstrates real competition. There are known cases where more than 25 buyers participated simultaneously in a single electronic auction, leading to a noticeable increase in the final property price compared to the starting price.
Online only and under strict rules
Since 2022, traditional in-person auctions in Cyprus have been completely discontinued, and all sales of foreclosed real estate are conducted exclusively in electronic format. The procedure is regulated by strict legislation and a special decree of the Minister of Finance that describes in detail the rules for conducting auctions.
As before, debtors retain the same rights and obligations that existed during physical auctions. Information about the property is published in advance, at least 45 days before the auction, and bids are accepted only within a strictly limited time. The winner is the participant who offers the highest price.
Ease of participation and protection of parties
The platform is accessible from a computer, phone, or tablet, making participation as simple as possible. For Cyprus tax residents, registration and data verification are completed automatically through the state Cylogin system. Before participating in an auction, a security deposit equal to 10% of the property’s starting price must be paid.
Debtors have the opportunity to observe the bidding process online and even participate in it. For primary residences of a certain value, additional protective mechanisms are created, including the right of buyback at the final auction price for close relatives.
Why interest in the platform is growing
According to representatives of the Banks Association, the transition to electronic auctions has completely eliminated problems that accompanied physical auctions in the past, including pressure and unfair practices. The online format has made the process more transparent and understandable, while the growing number of participants directly increases the final price, which is also beneficial for debtors.
Another factor driving increased interest is the high prices in the real estate and rental markets, as well as expensive mortgage loans. More and more buyers and investors are considering electronic auctions as a real way to acquire property in Cyprus at market value, and sometimes at even more favorable prices.
As a result, the e-auctions platform is gradually becoming an important and stable element of the Cyprus real estate market, whose significance, according to experts, will only grow in the coming years.