In 2025, 146 residential properties in Cyprus—serving as primary homes for mortgage borrowers—were sold at auction. The total value of these sales reached €30 million, with the average price per property at around €205,000. These figures suggest that the issue affects far more people than is commonly assumed.
According to local official Stavros Papadouris, these numbers challenge the widespread belief that repossessions concern only isolated, complex cases. In reality, behind each case are real families losing their only homes.
Why the issue of repossessions is back in focus
The issue of forced property sales is being actively discussed amid new legislative initiatives currently under review by the Cyprus Parliament. The debate has sparked strong public reaction, as many citizens consider the current system insufficiently fair.
One of the key problems remains the lack of effective protection for borrowers before the repossession process begins. Experts and civil society organizations insist that individuals should have the right to challenge the amount of debt, interest rates, and potential hidden fees before losing their homes.
What changes are being proposed
The main demand is the restoration of full legal protection rights before the repossession procedure starts. This would allow borrowers to defend their interests and seek revisions of loan terms.
There is also discussion about strengthening the role of the Financial Ombudsman and making its decisions legally binding. Currently, it is proposed that such decisions be enforceable for amounts up to €20,000. Around 75% of all disputes fall within this range, making the initiative particularly significant for most citizens.
Social impact and current situation
The issue of repossessing distressed properties remains one of the most sensitive social topics in Cyprus. Since 2014, when the relevant legislation was introduced, the problem has not disappeared but has instead grown in scale.
Stories of people losing their homes show that this is not just about financial disputes, but about serious life crises. Amid rising living costs and increasing interest rates in Europe in 2025–2026, the risk of losing property remains high.
Cypriot authorities continue to seek a balance between the interests of banks and the protection of citizens. However, experts agree that without systemic changes, the situation is unlikely to improve.