KEDIPES Sells 272 Mortgaged Properties At Auctions In Cyprus

KEDIPES продала на кипрских аукционах 272 объекта залоговой недвижимости
2 February 2022 Liza Medvetskaya
1880

On Tuesday, February 2, the Cyprus collateral management company KEDIPES announced that since its foundation it has sold 272 properties for 14.7 million euros in Cyprus.

Only 29 units were residential real estate, most of the properties were fields and land plots.

The auctions for the sale of residential real estate involved objects with a total value of 3.1 million euros. In particular, according to KEDIPES, 10 offline auctions of residential real estate in the amount of 685 thousand euros and 19 online auctions of residential real estate in the amount of 2.4 million euros were successfully completed. The sold housing did not include objects that were recognized as the main place of residence of borrowers and the cost of which did not exceed 350 thousand euros.

In turn, 226 land plots and fields with a total value of 9.8 million euros were sold at auctions. Of these, 107 units of KEDIPES were sold at offline auctions (in the amount of 5.1 million euros), and 119 (in the amount of 4.7 million euros) - at online auctions.

It is noteworthy that while auctions for the sale of residential real estate and plots for residential development are popular with investors, auctions for the sale of commercial real estate and land for commercial development remain at a low level.

In particular, KEDIPES managed to sell only 10 commercial real estate objects worth 1.2 million euros: 4 were in offline auctions and 6 were sold online.

As for commercial plots, only a few investors expressed a desire to participate in the auction. KEDIPES managed to sell 7 lots for a total of 692 thousand euros. Of these, 5 accounted for offline auctions, and 2 for online sales.

Despite such low sales figures, since the beginning of its activity, KEDIPES has managed to get 1113 collateral real estate objects worth more than 85 million euros into its portfolio. Most of the lots are land plots and fields that were seized from borrowers due to debt.

As you may know, purchase of collateral real estate in Cyprus is an opportunity to make a good investment or buy a quality property for personal use.

In reality, when the time spent on solving bureaucratic issues related to the purchase of banking real estate in Cyprus is not worth the benefits that buyers initially expected. Many mistakenly believe that collateral real estate is sold like goods in a store, but only with a markdown. However, this is not the case. Collateral real estate in Cyprus is real estate that is pledged by the creditor's bank or on its balance sheet after collection from the debtor.

For example, if a developer goes bankrupt, his real estate is transferred to a banking organization, and then it is engaged in the further sale of the object, as a rule, through auctions. At the auction, real estate from the bank can be bought at a substantial discount. But there are cases when the final cost of an object at auction is unreasonably high.

In order for the purchase of an object to be really profitable, you should buy real estate even before the property goes to the bank's balance sheet, because then an additional financial burden will be added to its value. In other words, it is better to negotiate with the original owner by buying the object you are interested in from him with a good discount and financial obligations.

KEDIPES продала на аукционах 272 объекта залоговой недвижимости

The official online platform for buying real estate at auctions has been successfully operating in the Republic of Cyprus since December 2019.

The launch of such a system was one of the requirements of the international troika of creditors of Cyprus (the European Commission, the European Central Bank and the IMF), which provided financial assistance to the republic during the crisis of 2013. The creation of an online auction system was also supported by the banking institutions of the Republic of Cyprus. Which is not surprising, because for them it is another tool for reducing the huge amount of non-serviced debt of individuals and legal entities. Banks get an opportunity to increase the volume of available monetary resources, get rid of problem loans and, ultimately, stabilize the country's banking system.

KEDIPES продала на кипрских аукционах 272 объекта залоговой недвижимости

You can find profitable options for buying real estate in Cyprus on DOM. The website also has a large number of objects for rent - from residential to commercial real estate. Choose and contact professionals who will help you make the right choice!
Source: stockwatch.com.cy
Photos: pixabay.com
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