Banks of Cyprus, in cooperation with the Department of Town Planning and Housing, intend to arrange auctions for the sale of mortgaged housing in the near future.
Everybody will be able to buy real estate in Cyprus, the cost of which varies from several thousand to several million euros, in any city of the island.
By the way, financial institutions of the country intend to sell 392 real estate objects for a total amount of about €83 million. Compared to previous years, there will be more auctions.
As you may know, earlier banks were limited in their actions due to the moratorium. However, the decision to suspend the sale of property that is used as the main residence and the value of which does not exceed €500 thousand, commercial premises owned by small companies with fewer than ten employees and whose annual turnover does not exceed €2 million, as well as land , worth up to €250 thousand euros, expires on July 31, 2021. At the same time, the government has not yet submitted to parliament a new plan to protect vulnerable borrowers, as promised earlier.
Among the 392 properties to be auctioned in the near future: 93 houses, 254 land plots and agricultural fields, 33 commercial properties, 10 apartment buildings and 2 tourist properties.
It should be noted that the largest number of mortgaged real estate is located in Paphos and Nicosia - 112 and 111 properties. They are followed by Limassol (100), Larnaca (47) and the free Famagusta area (22).
At the same time, in terms of the number of residential properties, Nicosia is among the leaders, where 51 such objects are concentrated. Then there is Limassol with 17 residential properties, Paphos with 16 residential properties, Larnaca with 13 residential properties and the free Famagusta area with 7 residential properties.
But in terms of the number of confiscated land plots, Paphos is in first place (91). It is followed by Limassol (73), Nicosia (45), Larnaca (32) and Famagusta (13).
If you look in more detail on the cities of the island, then:
There are 23 planned auctions in Nicosia. The list includes 111 objects with a total value of €33.2 million: 46 houses, 45 land plots and agricultural fields, 15 commercial real estate and 5 apartment buildings.
26 auctions are planned in Limassol. The list includes 100 properties with a total value of €19.5 million: 17 houses, 73 land plots and agricultural fields, 10 commercial real estate objects.
17 auctions are planned in Larnaca. The list includes 47 properties with a total value of €11 million: 11 houses, 32 land plots and agricultural fields, 2 commercial real estate and 2 apartment buildings.
17 auctions are planned in Paphos. The list includes 112 properties worth €11 million: 16 houses, 91 land plots and 5 commercial real estate objects.
12 auctions are planned in Famagusta. The list includes 22 properties with a total value of €8.2 million: 3 houses, 13 land plots and agricultural fields, 1 commercial property, 3 apartment buildings and 2 tourist sites.
We should note that since December 2019, an official online platform for buying real estate at auctions has been successfully operating in the Republic of Cyprus.
Real estate of various categories is put up for auction: houses, apartments, agricultural and industrial land plots, parking lots, etc.
The launch of such a system was one of the requirements of the international troika of Cyprus creditors (the European Commission, the European Central Bank and the IMF), who provided the republic with financial assistance during the 2013 crisis. The creation of an online auction system was also supported by the banking institutions of the Republic of Cyprus. This is not surprising, because for them it is another tool for reducing the huge volume of unserved debts of individuals and legal entities. Banks are able to increase the amount of free money resources, get rid of problem loans and, ultimately, stabilize the country's banking system.
However, if you want to profitably buy property in Cyprus from a bank, then it is far from the fact that the purchase price at the auction will justify your investment wishes.
In order for the purchase of an object to be really profitable, one should buy real estate even before the real estate is transferred to the bank's balance sheet, as then an additional financial burden will be added to its cost. It is really profitable to buy bank real estate until the moment when the bank starts selling the property.
You can find profitable options for buying real estate in Cyprus on DOM Portal. The website also has a large number of rental properties, both residential and commercial real estate. Choose and contact professionals who will help you make the right choice!